As the new financial manager of your company, the CEO has asked you to provide a brief analysis of the company’s performance to present at the upcoming board of directors meeting. The CEO has asked that you assess the company’s performance against your company’s industry. Thus, to do this, you will need to use ratio analysis or other techniques to determine areas in which the company is doing well, as well as areas that management should look at.
(I chose APPLE) Determine which company you will analyze. As such, be sure that the company has debt on its balance sheet, as this will be a requirement for future projects.
Go to the website for your company and download the 10-K report for the most recent year.
Perform your ratio analysis on your company:
A good place to start would be to perform a complete DuPont analysis of the company. The DuPont analysis might provide guidance as to what particular areas of the company should be examined next and what ratios should be calculated. Be sure to include ratios that cover the following areas:
i. Profitability
ii. Debt Management
iii. Liquidity
iv. Asset Management
v. Market Value
In addition to the DuPont analysis ratios, be sure to present and discuss at least six relevant ratios that your team feels may best assess the company’s performance.
Using an online database, such as bizstats.com or a similar database, capture the ratio averages for your company’s industry to evaluate your company’s performance.
Provide an analysis that compares your company’s ratios to the industry standards. There is no need to explain the purpose of the ratios. Rather, be sure to provide an interpretation of the results. This may entail some research from news sources on the company’s recent performance.