Company Analysis Project Rubric

ACCT 2200

 

Student Name: ______________________________________________

 

1. Writing: (10points)

Grammar, free of typos, etc.:_______________________________________________________________________________

 

Overall format, clarity, understandability, etc. (Excel formulas are appropriate): ________________________________________________________________________________________________________________

 

2. Part I: (15 points)

Company’s operations description:        __________

Interesting fact                :                                               __________

 

3. Part II: (35 points) Ratios Analysis Ratios Analysis
4. Net Profit Margin _______ __________            E. Current Ratio               ______    __________
5. Gross Profit Margin _______  ­__________            F. Days to Collect            ______    __________
6. Fixed Asset Turnover _______ __________ G. Days to Sell                   ______    __________
7. ROE                 _______  __________            H. Debt to Assets             ______    __________

 

Overall Company Analysis ­­­­­­­­­­­­­____________

 

4. Part III: (20 points)

Revenue recognition policy and impact on management decision-making: _____________________________

 

__________________________________________________________________________________________________________________

 

Secondaccounting policy and impact on management decision making: ________________________________

 

__________________________________________________________________________________________________________________

 

5. Part IV: (20 points)

Operating section analysis ___________________________________________________________________________________

 

__________________________________________________________________________________________________________________

 

Investing section analysis ____________________________________________________________________________________

 

__________________________________________________________________________________________________________________

 

Financing section analysis ___________________________________________________________________________________

 

__________________________________________________________________________________________________________________

 

 

 

 

 

ACCT 2200 Company Analysis Project – 100 points

 

Due Date:6/1/2017 at the beginning of class. Submit your Excel file on Canvas and turn in a hard copy of the rubric during class.

 

The purpose of this assignment is to analyze a company and make an informed decision about the company’s past performance and its potential, while utilizing the basic functionality of Excel to complete your analysis.Each student will pick a different public company (except companies in the Financial Services industry). Companies will be given based on a first come, first serve basis. The earlier you select a company, the more likely you are to get the company you want. You must email me the name of your company and the ticker symbol (how companies are identified on stock exchanges). Your job is to find the most recent annual report (10-K) from the following website, searching by the company’s name or ticker symbol: https://www.sec.gov/edgar/searchedgar/companysearch.html. You will download the Excel version of the financial statements (or copy them into Excel) and perform all of your ratios using Excel (you will also need the PDF version for Parts 1 and 3). See steps below.

Click on “Documents” to obtain PDF version of 10K (needed for Parts 1 and 3)

Click on “Interactive Data” by most recent 10K, scroll until you find it

 

Click on “View Excel Document”

 

 

 

All parts below are documented within the Excel file you downloaded from above. Label each section accordingly.

 

PART I

Scan Items 1-4 in the 10-K and discuss the company’s operations (what do they do, what is their industry, etc.) in a short paragraph using your own words. Additionally, include one fact about the company that you found interesting/did not know beforehand (make sure you state what you found interesting).

 

PART II

Using Excel formulas that utilize the exported financial data from above, calculate each of the ratios listed below for the most recent year and the prior year, on a separate tab within Excel. All numbers in the ratio calculations must be linked to the financial statement tabs. No numbers can be hard coded in the formula.

• After calculating the ratios, briefly explain whether the company is performing better, similar to, or worse in comparison to the prior year (FOR EACH RATIO).Do not just state that they are doing better, because it is higher, you must explain why. The goal is to demonstrate that you know what the ratio means not just state what happened to the numbers, which changed the ratio.
• If a ratio is not applicable, explain why.
• Round all ratios to two decimal places and show your work.

 

1. Net Profit Margin E. Current Ratio
2. Gross Profit Margin F. Days to Collect*
3. Fixed Asset Turnover* G. Days to Sell*
4. ROE* H. Debt to Assets

 

*These ratios require an average calculation. In order to calculate the prior year average for your comparison, you will have to download the Excel version of the prior year 10K (scroll until you find it on the SEC website). The easiest way to complete this is to copy the prior year balance sheet into your Excel workbook onto a new tab or below the current year.

 

{After calculating and comparing all of the above ratios, in a sentence or two, state your overall assessment of how the company is performing.}

 

PART III

Review the financial statement footnotes (utilizing the PDF version) to obtain information regarding the methods used for revenue recognition as well as one other significant accounting policy (your choice). These are generally listed in Note 1 after the financial statements (should be labeled Summary of Significant Accounting Policies).Describe how these methods impact the financial statements and the decisions made by management (how do their accounting policies affect the operational decisions made by management, i.e. how they run their business). Do not just copy and paste the wording from the report.

 

PART IV

Examine the cash flow statement and describe one line itemfrom each section (operating, investing, and financing). How does the change affect the cash flow section? How does it differ from last year?Only list one – so pick one that you understand and quantitatively contributes to the change in cash and explain the change. Remember that the current year cash flow statement shows the changes during the year so make sure you are explaining appropriately.

Company Analysis Project Rubric

ACCT 2200

 

Student Name: ______________________________________________

 

1. Writing: (10points)

Grammar, free of typos, etc.:_______________________________________________________________________________

 

Overall format, clarity, understandability, etc. (Excel formulas are appropriate): ________________________________________________________________________________________________________________

 

2. Part I: (15 points)

Company’s operations description:        __________

Interesting fact                :                                               __________

 

3. Part II: (35 points) Ratios Analysis Ratios Analysis
4. Net Profit Margin _______ __________            E. Current Ratio               ______    __________
5. Gross Profit Margin _______  ­__________            F. Days to Collect            ______    __________
6. Fixed Asset Turnover _______ __________ G. Days to Sell                   ______    __________
7. ROE                 _______  __________            H. Debt to Assets             ______    __________

 

Overall Company Analysis ­­­­­­­­­­­­­____________

 

4. Part III: (20 points)

Revenue recognition policy and impact on management decision-making: _____________________________

 

__________________________________________________________________________________________________________________

 

Secondaccounting policy and impact on management decision making: ________________________________

 

__________________________________________________________________________________________________________________

 

5. Part IV: (20 points)

Operating section analysis ___________________________________________________________________________________

 

__________________________________________________________________________________________________________________

 

Investing section analysis ____________________________________________________________________________________

 

__________________________________________________________________________________________________________________

 

Financing section analysis ___________________________________________________________________________________

 

__________________________________________________________________________________________________________________

 

 

 

 

 

ACCT 2200 Company Analysis Project – 100 points

 

Due Date:6/1/2017 at the beginning of class. Submit your Excel file on Canvas and turn in a hard copy of the rubric during class.

 

The purpose of this assignment is to analyze a company and make an informed decision about the company’s past performance and its potential, while utilizing the basic functionality of Excel to complete your analysis.Each student will pick a different public company (except companies in the Financial Services industry). Companies will be given based on a first come, first serve basis. The earlier you select a company, the more likely you are to get the company you want. You must email me the name of your company and the ticker symbol (how companies are identified on stock exchanges). Your job is to find the most recent annual report (10-K) from the following website, searching by the company’s name or ticker symbol: https://www.sec.gov/edgar/searchedgar/companysearch.html. You will download the Excel version of the financial statements (or copy them into Excel) and perform all of your ratios using Excel (you will also need the PDF version for Parts 1 and 3). See steps below.

Click on “Documents” to obtain PDF version of 10K (needed for Parts 1 and 3)

Click on “Interactive Data” by most recent 10K, scroll until you find it

 

Click on “View Excel Document”

 

 

 

All parts below are documented within the Excel file you downloaded from above. Label each section accordingly.

 

PART I

Scan Items 1-4 in the 10-K and discuss the company’s operations (what do they do, what is their industry, etc.) in a short paragraph using your own words. Additionally, include one fact about the company that you found interesting/did not know beforehand (make sure you state what you found interesting).

 

PART II

Using Excel formulas that utilize the exported financial data from above, calculate each of the ratios listed below for the most recent year and the prior year, on a separate tab within Excel. All numbers in the ratio calculations must be linked to the financial statement tabs. No numbers can be hard coded in the formula.

• After calculating the ratios, briefly explain whether the company is performing better, similar to, or worse in comparison to the prior year (FOR EACH RATIO).Do not just state that they are doing better, because it is higher, you must explain why. The goal is to demonstrate that you know what the ratio means not just state what happened to the numbers, which changed the ratio.
• If a ratio is not applicable, explain why.
• Round all ratios to two decimal places and show your work.

 

1. Net Profit Margin E. Current Ratio
2. Gross Profit Margin F. Days to Collect*
3. Fixed Asset Turnover* G. Days to Sell*
4. ROE* H. Debt to Assets

 

*These ratios require an average calculation. In order to calculate the prior year average for your comparison, you will have to download the Excel version of the prior year 10K (scroll until you find it on the SEC website). The easiest way to complete this is to copy the prior year balance sheet into your Excel workbook onto a new tab or below the current year.

 

{After calculating and comparing all of the above ratios, in a sentence or two, state your overall assessment of how the company is performing.}

 

PART III

Review the financial statement footnotes (utilizing the PDF version) to obtain information regarding the methods used for revenue recognition as well as one other significant accounting policy (your choice). These are generally listed in Note 1 after the financial statements (should be labeled Summary of Significant Accounting Policies).Describe how these methods impact the financial statements and the decisions made by management (how do their accounting policies affect the operational decisions made by management, i.e. how they run their business). Do not just copy and paste the wording from the report.

 

PART IV

Examine the cash flow statement and describe one line itemfrom each section (operating, investing, and financing). How does the change affect the cash flow section? How does it differ from last year?Only list one – so pick one that you understand and quantitatively contributes to the change in cash and explain the change. Remember that the current year cash flow statement shows the changes during the year so make sure you are explaining appropriately.