Assignment: Financial Review Project
Select one of the following companies, and use yahoo finance (or an alternate similar source) to locate and review the balance sheet, income statement and statement of cash flows from the past fiscal reporting year. This assignment should be prepared professionally and formatted well, and include proper citations for sources used.
•CHIPOTLE
•FACEBOOK
1. Using the financial statement information, calculate the following ratios for the prior two fiscal years. You must show the formula and the input data. Then, explain what the ratios may indicate for the company in 2-3 sentences for each one (be as specific as possible, and include chapter concepts such as liquidity, etc.).
*Current Ratio
*Inventory Turnover
*Days in Receivables
*Total Debt to Total Equity Ratio
*Net Profit Margin
*ROE
*EPS (do not calculate this one - research it online in the financials)
2. Select any two of above ratios, research the industry averages and compare it to your company. Show this comparison in a chart or graph. Explain what additional observations can be made based on this information for your company in 3-4 sentences per ratio.
3. Explain what other information you would want to have in order to make a better decision on the overall health of your company. You should include at least one additional ratio, and then 2 other quantitative or qualitative aspects for the business.