Discussion Post I:
Using the same company (Chevron) and annual reports that you chose, Reading and Using the Annual Report Case Study, address the following:
a) Calculate the gross profit ratio, operating margin ratio, and net income margin ratio for the latest two years, and obtain the industry average ratios (if available) from IBISWorld.
b) Analyze these ratios and discuss what each of these ratios tells you about the company's profitability, and how it compares to the industry averages.
c) Note any trends in these ratios from year-to-year (consider 2019 & 2018), and discuss your assessment of the company based on these changes.
d) If you were an investor, explain why you would or would not buy stock in the company.
Your initial response should be a minimum of 300 words.
Refer to the Annual report of Chevron and don't refer to any other resource.
YouTube Video: "How To Analyze an Income Statement"
Also, refer to how to calculate the gross profit ratio, operating margin ratio, and net income margin ratio
YouTube Video: "Profit Margin, Gross Margin, and Operating Margin - With Income Statements"
Discussion Post II:
Using the same company (Chevron) and annual reports that you chose in the week 1, Reading and Using the Annual Report Case Study.
This choice will only work if the company generates the bulk of its revenue from the sale of goods and maintains inventory. If not, then you will need to select another company for this analysis. Choose a company that a fellow student has not already posted.
Address the following:
a) Calculate the inventory turnover ratio and number of days' sales in inventory for the company for the latest two years. Obtain the industry averages for these ratios and any other pertinent information from IBISWorld, and analyze the results.
b) Discuss what each of these ratios tells you about the company's efficiency in managing its inventory, and how they compare to the industry average.
c) Identify the major causes of any changes in these ratios, and discuss your assessment of the company based on these changes.
d) If you are an investor, explain whether or not you are satisfied with the company's inventory management.
Your initial response should be a minimum of 300 words.
Refer to YouTube Video " how to calculate inventory turnover"
Refer to YouTube Video "how to calculate days to sell inventory"
Here is a quick YouTube Video that discusses why the inventory turnover ratio is an important metric and how it impacts a company
"What is an Inventory Turn and Why Is It Important?".
The response should include a reference list. Using double-space, Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.