- Individual task
- You must answer all the questions.
- When solving problems, you must clearly explain all the steps you are doing, and why are you making those steps.
- Show all your workings, a numeric answer is not enough.
- You should submit an excel sheet with the financial statements and your calculations.
- Font: Arial 12,5 pts.
- Text alignment: Justified.
- Make sure that the document can be read properly.
Submission: Week (4) – In class. Via Moodle (Turnitin).
Weight: This task is 40% of your total grade for this subject.
It assesses the following learning outcomes:
- Apply an efficient and effective approach to interpreting and analyzing financial statements.
- Analyze the current and potential future situation of a company based on its Financial Statements
- Critically evaluate financial ratios
The price per share for the company is 26.75, there are 43.22 MM shares outstanding, and the market cap is 1120,32MM.
Prepare a common size income statement and a common size balance sheet for the three years and answer the following questions:
1.- How is the development of the sales of the company in the period?
2.- What is the development of the margin?
3.- What is the development of the fixed costs?
4.- Make your comments and explain numerically the development of the following items:
- a) Total Assets
- b) Total Liabilities
- c) Stockholder´s Equity
- d) Retained earnings
- e) Explain what the situation of the company in terms of liquidity is.
- f) What is the working capital of the company, and is it adequate for the business of the company?
- g) Comment on the company’s leverage and explain based on calculations.
- h) Comment on days of accounts receivable, days of inventory and days of accounts payable.
- i) What is the Return on sales, return on Equity and Return on Assets, comment on the profitability development of the company.
- j) What is the EPS for the three periods.
- k) What is the PE ratio of the company for the three periods.