Comprehensive Project

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Overview

  • Correct Formatting (10 points)
    • Report analysis content should be a typed one (1) to two (2) pages
    • Report margins are one inch all around the page
    • Report should be prepared using “Times New Roman” font at size 12 point
    • Report body line spacing may be single or double spaced
    • Ratio calculations may be typed or NEATLY written by hand
    • Ratio calculations may be typed into a spreadsheet program such as MS Excel
    • A copy of each company’s Income Statement and Balance Sheet must be included
  • Analysis
  • Research Resource
  • Analysis Suggestions
  • Submitted Materials: Remember, this is a “PROJECT” and it counts as 12% of your total grade.

Prepare an analysis report on companies in a selected industry using data obtained from financial ratios.

The analysis report format should meet the following requirements:

  • Prepare an analysis report on three (3) companies, in the same industry.Compare their performance using data obtained from financial ratios you will calculate using public financial data.
  • The analysis will be conducted on 3 publicly traded companies chosen by each student.Use ten (10) financial ratios from “Exhibit 10 Summary of Analytical Measures” in your textbook to perform analysis on your (competitors) companies as follows:
  • Your report analysis should contain the following elements:
  • In these professional financial statements, you will encounter account names that may be unfamiliar to you. For example: Sales is usually called Total Revenue, Cost of Goods Sold will likely be called Cost of Revenues. Remember the order of accounts on a Multiple Step Income Statement or a Classified Balance Sheet will help you to identify these unfamiliar account names.
  • Note that amounts on the financial statements are usually shown, in thousands.If you use the Working Capital ratio, in your project, either adjust your amounts, or note that your number is shown in thousands.
  • Ten (10) ratios for each company which will create 30 total ratios.
  • Calculate each ratio and show the equation and your calculations for that ratio (30 x 1 = 30 pts)
  • Calculate each ratio using public data for each company that you obtain from the company’s Income Statement and Balance sheet.
  • Present the thirty ratios (10 for 3 companies) in a chart for easy comparison
  • A brief history in your introduction paragraph on your chosen industry (5 points)
  • A comparison of the three (3) companies and their performance for each financial ratio
  • Explain what each ratio calculation shows for each company’s performance and how the performance rated (slightly better, significantly better) relative to the other companies (10 ratios x 5 pts = 50 pts)
  • Give a reasonable explanation of your company’s ratings and NOT just the numeric calculation (10 pts)
  • Summary paragraph stating your opinion of each of the three companies and their overall ratios performance. Report a comparison of the ratios to industry averages (10 pts)
  • Going beyond basic requirements (inclusion of nice cover sheet, logos, etc) – (5 pts)
  • Note: It is highly unlikely that a single company will perform best on all ten (10) ratios.

Each student will:

Select 3 publicly traded companies that perform similar types of business activities.

Here is the link to one site you can search: http://investsnips.com/list-of-publicly-traded-retail-stores/

Google Search is also a great tool, for identifying publicly traded companies within the same business. For example, a Google Search for “publicly traded farm equipment companies” yielded multiple sites that identified top companies in the farm equipment business. After selecting 3 companies, from the results of the Google Search, use Yahoo Finance, to gather the Stock information, Income Statement, and Balance Sheet, for each company.

Once you know the stock symbol for the companies you have selected, type each symbol into the “Quote Lookup” box, on the right side/mid-screen, at Yahoo Finance. If you know the company name, but not the stock symbol, use the “Search for news, symbols, or companies” search tool, at the top of the screen. To use this search tool, begin to type in the company name (spelling must be accurate), as you type the company name, it will show up in a drop-down list, for selection. If it does not appear in the selection options list, you either misspelled the name, it isn’t a publicly traded company, or it goes by a different name. Often companies are part of a larger corporate group, i.e., Olive Garden is part of Darden Restaurants, the parent corporation.

The report may be submitted electronically in Blackboard OR a printed version given to me in class.

  • Submit ratio calculations using either Excel, Word or hand-written document.
  • Submit a well-written report
  • Submit the income statement and balance sheet for each of the three companies you selected to analyze.

SIDE NOTE – Recommendation by a former student:

To get a good print copy from the financial sites, go to Printfriendly.com, paste the url of the report/site you wish to print from.A cleaner version of the report will appear for printing in most cases.

POINTS RECAP:

Correct Formatting 10 points

10 ratios x 3 companies (30 total ratios)30 points

Discussion of the 10 ratios (5 pts each)50 points

Reasonable explanation of your company’s ratings (not just restating the numbers)10 points

Summary paragraph – discuss all three companies and industry averages10 points

History of industry in introduction5 points

Going beyond (inclusion of nice cover sheet, logos, etc) 5 points

Total 120 points
Industries Organized by Sector

1. Basic Materials

Agricultural Chemicals

Aluminum

Chemicals – Major Diversified

Gold

Independent Oil & Gas

Industrial Metals & Minerals

Major Integrated Oil & Gas

Nonmetallic Mineral Mining

Oil & Gas Drilling & Exploration

Oil & Gas Equipment & Services

Oil & Gas Pipelines

Oil & Gas Refining & Marketing

Silver

Specialty Chemicals

Steel & Iron

Synthetics

2, Conglomerates

Conglomerates

3. Consumer Goods

Auto Manufacturers – Major

Auto Parts

Beverages – Brewers

Beverages – Soft Drinks

Beverages – Wineries & Distillers

Business Equipment

Cigarettes

Cleaning Products

Confectioners

Dairy Products

Electronic Equipment

Farm Products

Food – Major Diversified

Home Furnishings & Fixtures

Housewares & Accessories

Meat Products

Packaging & Containers

Paper & Paper Products

Personal Products

Processed & Packaged Goods

Recreational Goods, Other

3. Consumer Goods (continued)

Recreational Vehicles

Rubber & Plastics

Sporting Goods

Textile – Apparel Clothing

Textile – Apparel Footwear & Accessories

Toys & Games

Trucks & Other Vehicles

4. Financial

Accident & Health Insurance

Asset Management

Closed-End Fund – Debt

Closed-End Fund – Equity

Closed-End Fund – Foreign

Credit Services

Diversified Investments

Foreign Money Center Banks

Foreign Regional Banks

Insurance Brokers

Investment Brokerage – National

Investment Brokerage – Regional

Life Insurance

Money Center Banks

Mortgage Investment

Property & Casualty Insurance

Property Management

REIT – Diversified

REIT – Healthcare Facilities

REIT – Hotel/Motel

REIT – Industrial

4. Financial (continued)

REIT – Office

REIT – Residential

REIT – Retail

Real Estate Development

Regional – Mid-Atlantic Banks

Regional – Midwest Banks

Regional – Northeast Banks

Regional – Pacific Banks

Regional – Southeast Banks

Regional – Southwest Banks

Savings & Loans

Surety & Title Insurance

5, Healthcare

Biotechnology

Diagnostic Substances

Drug Delivery

Drug Manufacturers – Major

Drug Manufacturers – Other

Drugs – Generic

Health Care Plans

Home Health Care

Hospitals

Long-Term Care Facilities

Medical Appliances & Equipment

Medical Instruments & Supplies

Medical Laboratories & Research

Specialized Health Services

6. Industrial Goods

Aerospace/Defense – Major Diversified

Aerospace/Defense Products & Services

Cement

Diversified Machinery

Farm & Construction Machinery

General Building Materials

General Contractors

Heavy Construction

Industrial Electrical Equipment

Industrial Equipment & Components

Lumber, Wood Production

Machine Tools & Accessories

Specialized Health Services

7. Services

Advertising Agencies

Air Delivery & Freight Services

Air Services, Other

Apparel Stores

Auto Dealerships

Auto Parts Stores

Broadcasting – Radio

Broadcasting – TV

Business Services

CATV Systems

Catalog & Mail Order Houses

Department Stores

7. Services(continued)

Discount, Variety Stores

Drug Stores

Drugs Wholesale

Education & Training Services

Electronics Stores

Electronics Wholesale

Entertainment – Diversified

Food Wholesale

Gaming Activities

General Entertainment

Grocery Stores

Home Furnishing Stores

Home Improvement Stores

Industrial Equipment Wholesale

Jewelry Stores

Lodging

Major Airlines

Management Services

Marketing Services

Medical Equipment Wholesale

Movie Production, Theaters

Personal Services

Publishing – Books

Publishing – Newspapers

Publishing – Periodicals

Railroads

Regional Airlines

Rental & Leasing Services

Research Services

Resorts & Casinos

Restaurants

Security & Protection Services

Shipping

Specialty Eateries

Specialty Retail, Other

Sporting Activities

Sporting Goods Stores

Staffing & Outsourcing Services

Technical Services

Trucking

8.Technology

Application Software

Business Software & Services

Communication Equipment

Computer Based Systems

Computer Peripherals

Data Storage Devices

Diversified Communication Services

Diversified Computer Systems

Diversified Electronics

Healthcare Information Services

Information & Delivery Services

Information Technology Services

8. Technology(continued)

Internet Information Providers

Internet Software & Services

Multimedia & Graphics Software

Networking & Communication Devices

Printed Circuit Boards

Processing Systems & Products

Scientific & Technical Instruments

Security Software & Services

Semiconductor – Broad Line

Semiconductor – Integrated Circuits

Semiconductor – Specialized

Semiconductor Equipment & Materials

Semiconductor- Memory Chips

Technical & System Software

Telecom Services – Domestic

Telecom Services – Foreign

Wireless Communications

9. Utilities

Diversified Utilities

Electric Utilities

Gas Utilities

Water Utilities

 

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