Homework
I. Select a company to research.
a. Pick a company that you admire or that interests you. You could also select a company that you'd like to work for in the future. (the company i chose is Macy's)
b. You may want to select a publicly-traded company, as you will have access to more information.
II. Go to the company's website and find the Investor Relations page.
a. Locate the annual report and download it for future reference.
III. Write a summary of the annual report that addresses the following:
a. Liquidity
i. Current Position Analysis. Calculate the company's working capital, current ratio, and quick ratio. Provide a brief (2-3 sentences) analysis of the data.
ii. Accounts Receivable Analysis. Calculate the company's accounts receivable turnover and number of days' sales in receivables. Provide a brief (2-3 sentences) analysis of the data.
iii. Inventory Analysis. Calculate the company's inventory turnover and number of days' sales in inventory. Provide a brief (2-3 sentences) analysis of the data.
iv. In no more than 2 paragraphs, write a synopsis of company's liquidity.
b. Profitability
i. Calculate each of the following and provide a brief (2-3 sentences) analysis of the data:
• Asset turnover
• Return on total assets
• Return on stockholders' equity
• Earnings per share on common stock
• Price-earnings ratio
• Dividends per share
• Dividend yield
ii. In no more than 2 paragraphs, write a brief synopsis of the company's profitability.
c. Solvency
i. Calculate the following ratios:
• Ratio of fixed assets to long-term liabilities
• Ratio of liabilities to stockholders' equity
• Times interest earned
ii. In no more than 2 paragraphs, write a brief synopsis of the company's solvency.
IV. In no more than 2 paragraphs, write a conclusion that compares your initial perceptions of the company to what you now think since you've conducted your analysis.
Format your homework according to the give formatting requirements:
a. The answer must be double spaced, typed, using Times New Roman font (size 12), with one-inch margins on all sides.
b. The response also includes a cover page containing the title of the homework, the course title, the student's name, and the date. The cover page is not included in the required page length.
c. Also include a reference page. The references and Citations should follow APA format. The reference page is not included in the required page length.