Assignment: Select one of the following companies and obtain the company's financial statements within their Annual Report or 10-K for the appropriate year (see separate instructions for accessing financial statements).
Apple - 9/30/17 and 9/24/16 - investor page on apple
The Walt Disney Company - 9/30/17 and 10/1/16 - thewaltdisneycompany/investor-relations
On the following tab, calculate the following metrics for the company selected for the two most recent years (noted above) and consider the trend in one of the categories. Make sure to show all calculations and clearly label the year for each calculation as well as include a label for what is in the numerator and denominator. Round answers to two decimal points (i.e. 56.78). Each question is worth two points each. Hint: Make sure to use the net income figure (which can also be called net earnings) that is used for EPS anytime you need net income:
1 Liquidity: Current ratio
2 Solvency: Debt to assets ratio
3 Profitability: Return on Assets
4 Profitability: Earnings per share (EPS) (Hint: Weighted Average Shares Outstanding, which is the same as average common shares outstanding, is included either as a line near the bottom of the Statement of Income/Earnings or in a ‘Earnings Per Share' footnote after the financial statements. Calculate EPS using the basic net income and average common shares numbers, not diluted.). Also, for Apple, make sure to convert the average shares number to millions if net income is in millions.
5 Based upon the calculations performed above, comment on the trend in either the Company's liquidity, solvency, or profitability considering the year over year comparison (trend in the above ratios from oldest date to most recent).
Instructions for Accessing Public Company Financial Statements
Accessing through SEC website
1. Start by going to sec website.
2. Under the ‘Filings' Menu, select ‘Company Filings Search'
3. Type in the Company name and select ‘search'.
4. A screen listing all filings for the Company you searched will be shown. Make sure the Company listed in the blue box is the company you were looking for.
a. Note: For Apple, you want ‘Apple Inc' with CIK 0000320193
b. Note: For Disney, you want ‘Walt Disney Co' with CIK 0001001039
5. Type '10-K' into the ‘Filing Type' filter and select ‘search'. This will filter out all filings except for the 10-K which is the annual financial statements all public companies must submit.
6. Open the most recent 10-K by selecting the ‘documents' button next to the first 10-K shown and then selecting the first linked item in the next view (the one labeled ‘10-K').
7. Once the 10-K is open, use the table of contents to locate the ‘financial statements and supplementary data' (should be in Part II, Item 8 of all 10-Ks).
Accessing through Company website
1. Start by going to the Company's website and look for a link for ‘investors'.
• You can also access directly for most companies by using their direct investor website, such as:
i. Find investor page on apple website for Apple and
ii. Find investor-relations page on waltdisneycompany website for Walt Disney
2. Select the ‘SEC Filings' link
3. Filter for ‘Annual Reports' or ‘Annual Filings'
4. Select the 10-K you want to open.
5. Once the 10-K is open, use the table of contents to locate the ‘financial statements and supplementary data' (should be in Part II, Item 8 of all 10-Ks).