This week is easy: Your Financial Analysis Project is the ONLY thing on this week’s checklist. 1.Read the rubric carefully! 2.See if, in addition to the PDF download, your selected company has their...

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This week is easy: Your Financial Analysis Project is the ONLY thing on this week’s checklist.


1.Read the rubric carefully!


2.See if, in addition to the PDF download, your selected company has their 10k available in Excel. If not, you will need to key in the balance sheet and income statement data into Excel. (Make sure you have the income statement and not the statement of comprehensive income!). Alternatively, you may NEATLY label work out your ratios in word, but your future self will thank you for learning to do it in Excel now (in fact, bonus points are out there for it and it’s much harder to have a math error if you use formulas in Excel).


3.Review the income statement and balance sheet (Look at the numbers, read over them several times, draw preliminary conclusions – do NOT skim)


4.Consult the experts: I don’t mind if you go out to EDGAR, Yahoo!Finance, Fidelity, etc to see what actual financial analysts are saying about your company – it’s a great research step!


5.Complete horizontal, vertical and ratio analysis from Chapter 15.


6.Construct your financial analysis paper including:


a.An outline of any important points found in the MD&A (SKIM)


b.An outline of any important points found in the Notes to the Financial Statements (SKIM)


c.A summary of findings for horizontal and vertical analysis of the income statement and the balance sheet (each statement should be a separate summary).


d.A summary of profitability ratios


e.A summary of leverage ratios


f.A summary of growth ratios


g.A summary of return ratios


NOTE: “Summary” does not mean “List”. I can see the results of each of your ratio analyses. The summary should tell me the conclusions you draw from each group of ratios.


7.Draw conclusions about the company. If you were an internal analyst, what would you bring to management’s attention? If you were analyzing this company as an acquisition target, what would you recommend.


8.Would you work for this company? Why or why not? Would you buy stock in this company? Why or why not?



Answered Same DayJul 08, 2021

Answer To: This week is easy: Your Financial Analysis Project is the ONLY thing on this week’s checklist....

Neenisha answered on Jul 11 2021
139 Votes
Balance Sheet
    Consolidated Balance Sheets - USD ($) $ in Millions                            Horizontal Analysis                        Vertical Analysis
        2015    2016    2017    2018    2019        2015    2016    2017    2018    2019        2015    2016    2017    2018    2019
    Current assets:
    Cash and cash equivalents    $ 10,923
    $ 10,430    $ 11,981    $ 10,866    $ 10,985            -4.51%    14.87%    -9.31%    1.10%        9.82%    8.49%    8.62%    7.14%    6.32%
    Short-term investments    1,988    2,845    3,509    3,458    3,260            43.11%    23.34%    -1.45%    -5.73%        1.79%    2.32%    2.52%    2.27%    1.87%
    Accounts receivable    6,523    8,152    9,568    11,388    11,822            24.97%    17.37%    19.02%    3.81%        5.86%    6.64%    6.88%    7.48%    6.80%
    Other current receivables    6,801    7,499    6,262    6,862    9,640            10.26%    -16.50%    9.58%    40.48%        6.11%    6.11%    4.50%    4.51%    5.54%
    Assets under management    2,998    3,105    3,101    3,032    3,076            3.57%    -0.13%    -2.23%    1.45%        2.69%    2.53%    2.23%    1.99%    1.77%
    Prepaid expenses and other current assets    2,406    1,848    2,663    3,086    3,851            -23.19%    44.10%    15.88%    24.79%        2.16%    1.50%    1.92%    2.03%    2.21%
    Total current assets    31,639    33,879    37,084    38,692    42,634            7.08%    9.46%    4.34%    10.19%        28.44%    27.59%    26.67%    25.42%    24.52%
    Long-term investments    18,792    23,868    28,341    32,510    37,209            27.01%    18.74%    14.71%    14.45%        16.89%    19.43%    20.38%    21.36%    21.40%
    Property, equipment and capitalized software    4,861    5,901    7,013    8,458    8,704            21.39%    18.84%    20.60%    2.91%        4.37%    4.80%    5.04%    5.56%    5.01%
    Goodwill    44,453    47,584    54,556    58,910    65,659            7.04%    14.65%    7.98%    11.46%        39.96%    38.75%    39.23%    38.70%    37.76%
    Other intangible assets, net of accumulated amortization     8,391    8,541    8,489    9,325    10,349            1.79%    -0.61%    9.85%    10.98%        7.54%    6.95%    6.10%    6.13%    5.95%
    Other assets    3,118    3,037    3,575    4,326    9,334            -2.60%    17.71%    21.01%    115.77%        2.80%    2.47%    2.57%    2.84%    5.37%
    Total assets    111,254    122,810    139,058    152,221    173,889            10.39%    13.23%    9.47%    14.23%        100.00%    100.00%    100.00%    100.00%    100.00%
    Current liabilities:
    Medical costs payable    14,330    16,391    17,871    19,891    21,690            14.38%    9.03%    11.30%    9.04%        12.88%    13.35%    12.85%    13.07%    12.47%
    Accounts payable and accrued liabilities    11,994    13,361    15,180    16,705    19,005            11.40%    13.61%    10.05%    13.77%        10.78%    10.88%    10.92%    10.97%    10.93%
    Commercial paper and current maturities of long-term debt    6,634    7,193    2,857    1,973    3,870            8.43%    -60.28%    -30.94%    96.15%        5.96%    5.86%    2.05%    1.30%    2.23%
    Unearned revenues    2,142    1,968    2,269    2,396    2,622            -8.12%    15.29%    5.60%    9.43%        1.93%    1.60%    1.63%    1.57%    1.51%
    Other current liabilities    7,798    10,339    12,286    12,244    14,595            32.59%    18.83%    -0.34%    19.20%        7.01%    8.42%    8.84%    8.04%    8.39%
    Total current...
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