Obtain the balance sheet and income statement from a company of your choice from their latest 10-K annual reports. This information is found on the SEC website (www.setoov). Click on FILINGS and access the Quick EDGAR tutorial. Click on Companies and Other Filers.– Fill in your company name and find the 10-K. Look for companies that allow you to transfer their financial information to EXCEL (will have ‘Interactive Data”). Click on “View EXCEL Document– then SAVE. Open the file saved (remember to click on the tab for the statements).
Cut and paste all years shown of the balance sheet and income statement into a new EXCEL spreadsheet. Omit any extraneous information (e.g., # shares of stock issued, outstanding, eps for other than the net income. etc.), Compute the ratios and financial analysis for the company as indicated below:
1.Horizontal analysis of the balance sheet and income statement (% change from year to year)
2.Vertical analysis of the balance sheet and income statement for all years shown.
3.Ratio Analysis (Illustration 5A-1 p. 246) for two years for the company
c.Profit Margin on Sales
d.Price-Earnings ratio (you will have to google stock price on the balance sheet date)
e.Debt to Assets ratio