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Annual Report Project Directions :

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ANYTHING IN ITALICS, REPLACE… YOUR COMPANY’S NAME YOUR NAME YOUR SECTION Embed a link to the company’s most recent Annual Report here…. Annual Report Project Directions : - PowerPoint PPT Presentation

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Page 1: Annual Report Project Directions :

ANYTHING IN ITALICS, REPLACE…YOUR COMPANY’S NAME

YOUR NAMEYOUR SECTION

Embed a link to the company’s most recent Annual Report here….Annual Report Project Directions:•By May 22 Class: GET APPROVAL FOR THE PUBLICALLY TRADED COMPANY YOU WANT TO ANALYZE FROM YOUR PROFESSOR. EACH STUDENT WILL DO A DIFFERENT COMPANY.•By June 3 Class: PRINT & BRING TO CLASS YOUR COMPLETED SLIDES 1-7.•By June 3 Class: SAVE YOUR PROJECT AS A POWERPOINT--NAME YOUR FILE YOUR THREE INITIALS AND YOUR COMPANY NAME. SEND AS AN EMAIL ATTACHMENT TO [email protected] •By June 17 Class: PRINT & BRING TO CLASS YOUR COMPLETED SLIDES 1-12.•By June 26 Class: SEND YOUR COMPLETED PRESENTATION AS AN E-MAIL ATTACHMENT TO [email protected] •By June 26 Class: PRINT & BRING TO CLASS YOUR COMPLETED POWERPOINT PRESENTATION. [Modify and enhance this powerpoint template—replace any italicized words in this template with your own. Add images, tables, backgrounds, etc. !!! ] •THIS ANNUAL REPORT PROJECT VALUE IS INCLUDED IN YOUR PARTICIPATION GRADE. 

Page 2: Annual Report Project Directions :

Introduction

• Name of chief executive officer

• Location of home office

• Ending date of latest fiscal year

• Description of the principal products or services that the company provides

• Main geographic area of activity

Page 3: Annual Report Project Directions :

Audit Report

• Name of the company’s independent auditors.

• In your own words, what did the auditors say about the company?

Page 4: Annual Report Project Directions :

Stock Market Information

• Most recent price of the company’s stock

• Twelve month trading range of the company’s stock

• Dividend per share

• Date of the above information

• Your opinion about the company stock as an investment? BUY/SELL/HOLD

Page 5: Annual Report Project Directions :

Income Statement

•Insert a table showing the company’s gross profit, income from operations, and net income for the last two years.

•Is the format most like a single-step or multistep format?

•In your own words comment on the increases and decreases in these amounts.

Page 6: Annual Report Project Directions :

Balance Sheet

•Insert a table showing that Assets=Liabilities + Stockholders’ Equity for the past two years.

•In your own words, comment in general on the increases or decreases in the balance sheet accounts. Which accounts changed the most?

Page 7: Annual Report Project Directions :

Statement of Cash Flows•Insert a table showing the company’s cash flow from operating, investing, and financing activities for the past two years.

•Are cash flows from operations more or less than net income for the past two years?

•Is the company growing through investing activities, i.e., buying property, plant and equipment and other long lived assets?

•What is the company’s primary source of financing, i.e., long-term loans, stock sales?

•Overall, has cash increased or decreased over the past two years?

Page 8: Annual Report Project Directions :

Accounting Policies

•What are the significant accounting policies, if any, relating to revenue recognition, cash, accounts receivable, inventories, investments, and property and equipment?

•List the topics of the notes to the financial statements.

Page 9: Annual Report Project Directions :

Financial AnalysisLiquidity Ratios

For the past two years, calculate and comment on:• Working Capital• Current Ratio• Receivable turnover• Average days’ sales uncollected• Inventory turnover• Average days’ inventory on hand• Operating cycle• Payables turnover• Average days’ payables

Page 10: Annual Report Project Directions :

Financial AnalysisProfitability Ratios

For the past two years, calculate and comment on:

• Profit margin

• Asset turnover

• Return on assets

• Return on equity

Page 11: Annual Report Project Directions :

Financial AnalysisMarket Strength Ratios

For the past two years, calculate and comment on:

• Price/earnings per share

• Dividend yield

Page 12: Annual Report Project Directions :

Financial AnalysisSolvency Ratio

For the past two years, calculate and comment on:

• Debt to equity

• Financing gap

Page 13: Annual Report Project Directions :

Industry Situation & Company Plans

In your own words, describe the industry and its outlook; then summarize the company’s future plans based on your research (cite at least two sources) and on reading the annual report (be

sure to read the letter to the stockholders). Include links to any relevant information.

Page 14: Annual Report Project Directions :

Executive Summary

After completing your analysis, write an executive summary of your

conclusions here….