Reference no: EM133837959

Tasks:
Find the following items in the two latest forms 10-K.
Collect its financial data for the last 3 years: Income statement; statement of Cash Flows; Balance sheet.

1- Analyse the profitability of the company.
To do that calculate:
The gross margin percentage
The return on total assets
The return on equity

2- Assess the liquidity and asset management of the company
To do that calculate:
Working capital.
Working capital as % of sales.
The current ratio.
The acid-test ratio.
The average Accounts receivable days.
The average Inventory days.
The average Accounts payable days.
The operating cycle

3- Assess the company solvency:
In order to do that, calculate:
The debt-to-equity ratio.
The debt-to-Assets ratio.
The times interest earned ratio.

4- Analyse the company stock performance.
Calculate:
The earnings per share.
The dividend yield ratio.
The dividend payout ratio.
The price-earnings ratio.
Compare the performance of your company stocks versus the S&P 500 in the period.
Compare the price-earnings ratio with your biggest competitor. Get assignment help services from verified experts!

5- Summarize which are the strengths and weaknesses. Which recommendations would you give to the company management to improve its competitive position? Support your answer on your calculations.
Prepare a common size income statement and answer to the following questions:
1.- How is the development of the sales of the company in the period?
2.- What is the development of the Gross margin?
3.- What is the development of the fixed costs as a percentage of sales?
4.- Make your comments and explain numerically the development of the following items:
a) Is the working capital adequate for the business of the company?
b) Comment on the leverage of the company and give an explanation based on calculations.
c) Comment on the cash flow development of the period.
d) Explain the difference between Net Income and Operating Cash Flow in the last year.