FIN$410$–$Summer$2016$
$
DuPont'Project!Individual!Spreadsheet*
and$Memo$Assignment!
Due$Date:$
•
•
•
Saturday,$June$18$before$11:59$pm$
I$would$NOT$wait$until$the$last$minute$to$submit$just$in$case$there$are$
technical$problems$
If$you$do$wait$until$the$last$minute,$note$that$turnitin$will$cut$off$submissions$
at$EXACTLY$11:59$by$it’s$clock$so$you$should$submit$it$at$least$5$minutes$
before$just$in$case$–$I$will$not$accept$it$by$email$just$because$you$waited$until$
the$last$second$
Purpose$of$the$Assignment$
•
•
•
•
Find$and$use$appropriate$online$financial$data$
Calculate$a$variety$of$financial$ratios$needed$to$complete$a$DuPont$Analysis$
Effectively$use$Excel$for$a$financial$statement$analysis$
Write$a$brief$report$detailing$your$results$and$a$specific$recommendation$for$
improvement$in$one$area$
Expectations$(Requirements)$–$Spreadsheet$
•
•
•
Collect$required$data$for$CDI$Corp.$(CDI)$
Create$a$spreadsheet$with$the$following$tabs$
o CDI$Balance$Sheets$
o CDI$Income$Statements$
o Peer$Group$Balance$Sheets$(copy/paste$from$spreadsheet$provided$on$
Blackboard)$
o Peer$Group$Income$Statements$(copy/paste$from$spreadsheet$
provided$on$Blackboard)$
o Ratio$Analysis$(copy/paste$from$spreadsheet$provided$on$
Blackboard)$
o References$
Required$Financials$
o Use$As$Reported$Financials$from$Mergent$and$download$into$Excel$–$
You$MUST$use$Mergent$and$you$MUST$use$As$Reported$–$not$
standardized$–$failure$to$follow$this$requirement$will$result$in$a$
zero$on$the$spreadsheet$portion$of$the$assignment$
o CDI$Corp.$
! Annual$Balance$Sheets$for$the$last$4$years$
! Annual$Income$Statements$for$the$last$3$years$
! Additional$data$from$Notes$to$Financial$Statements,$Statement$
of$Cash$Flows,$or$other$online$sources$as$needed$(most$likely$
to$be$depreciation,$amortization,$impairment$if$not$provided$
FIN$410$–$Summer$2016$
$
•
•
on$the$income$statement,$operating$lease$information,$cost$of$
debt$needed$for$PV$of$operating$leases)$–$include$on$the$
Balance$Sheet$Tab$$below$the$“as$reported$balance$sheets”$
Setting$up$the$spreadsheets$
o You$may$need$items$for$calculations$that$aren’t$on$the$income$
statement,$i.e.,$EBITDA,$EBIT,$employees$to$scale,$etc.$You$should$
calculate$these$below$the$income$statement$to$aid$in$ratio$calculations$
o You$may$need$items$from$the$balance$sheet$as$well$such$as$fixed$
assets$(longeterm$assets),$longeterm$liabilities,$interest$bearing$debt,$
etc.$You$should$calculate$these$below$the$“as$reported”$information$–$
be$sure$to$calculate$the$averages$before$you$calculate$the$ratios$
o Think$about$the$calculations$that$you$will$be$doing$before$you$set$up$
the$spreadsheets$
o You$want$to$be$able$to$copy/paste$formulas$as$much$as$possible$to$
reduce$the$probability$of$typing$a$formula/function$in$incorrectly$as$
well$as$to$reduce$the$amount$of$time$that$you$spend$working$on$this$
o This$means$that$you$need$to$have$your$columns$spaced$to$match$the$
Ratio$Table$provided$on$the$Ratio$Analysis$tab$
Required$Calculations$
o On$the$Balance$Sheet$Tabs$for$your$company$AND$the$peer$group$–$
common$size$balance$sheets$(all$accounts$–$not$just$assets$e$expressed$
as$a$%$of$total$assets)$See$Table$3.5$in$the$text$as$an$EXAMPLE$–$you$
do$not$have$to$calculate$the$YOY$change$(year$over$year)$but$you$can$
if$you$think$it$will$provide$you$with$useful$information$–$you$will$have$
many$more$accounts$than$the$one$in$Table$3.5$
o On$the$Balance$Sheet$Tabs$for$your$company$AND$the$peer$group$–$
averages$for$all$accounts$for$each$fiscal$year$–$this$will$give$you$three$
sets$of$averages$to$match$the$three$fiscal$years$for$the$income$
statements$
o On$the$Income$Statement$Tabs$for$your$company$AND$the$peer$group$
–$common$size$income$statements$(all$accounts$expressed$as$a$%$of$
total$sales$or$total$revenue)$See$Table$3.6$in$the$text$as$an$example$–$
you$will$likely$have$many$more$items$than$in$Table$3.6.$
o Ratio$Analysis$Tab$–$you$MUST$use$the$Ratio$Analysis$table$I$
provided$on$the$spreadsheet$on$Blackboard$
! This$tab$is$for$calculations$only$and$ALL$ratio$calculations$
MUST$be$done$here$$–$do$not$do$the$calculations$on$another$
spreadsheet$and$then$reference$to$the$ratio$page$(exception$–$if$
the$ratio$is$something$that$is$on$the$commonesize$income$
statement,$you$should$reference$the$commonesize$statement$
and$not$redo$the$calculation)–$all$data$used$in$the$calculations$
should$be$referenced$from$the$balance$sheet$and$income$
statement$tabs$–$Failure$to$do$this$may$result$in$significant$
loss$of$points$if$your$numbers$are$incorrect$–$tracing$
FIN$410$–$Summer$2016$
$
!
!
!
!
!
formulas$on$multiple$pages$is$time$consuming$and$
sometimes$impossible$to$figure$out$
Do$NOT$include$information$outside$of$columns$A$through$H$
Do$NOT$include$anything$below$row$44$
Calculate$ROE$–$use$the$NI/TE$formula$–$not$the$DU$Pont$
identity$
See$the$posted$PowerPoint$presentations$and$the$textbook$for$
formulas$and$guidance$on$interpretation$
• Make$sure$you$look$at$these$formulas$and$not$at$online$
sources$and$don’t$just$assume$you$know$what$to$use$
based$on$the$name$of$the$ratio$–$these$are$the$
calculations$I$am$expecting$
• Understand$when$to$use$operating$income,$if$given,$and$
when$to$use$EBIT$as$discussed$in$class$–$regardless$of$
the$wording$of$the$formula$–$think$about$what$
information$you$are$trying$to$find$
• Use$annual$averages$for$the$balance$sheet$accounts$
for$all$of$the$ratios$(use$the$Average$Function$–$you$are$
averaging$the$beginning$and$ending$numbers$for$each$
year)$
• Calculate$ALL$ratios$–$do$not$use$ratios$presented$on$
financial$sites$or$on$Mergent$
• Effective$tax$rate$=$taxes$/$taxable$income$–$don’t$look$
it$up$somewhere$
• Presentation$Format$–$make$sure$you$present$each$
ratio$properly$(if$you$don’t$see$the$units$next$to$the$
ratio$name$it$is$supposed$to$be$a$%),$use$the$
appropriate$round$function$in$Excel$for$the$“period”$
ratios,$display$everything$else$to$two$decimal$places$but$
DON’T$use$the$round$function$
• Auto$grading$–$I$will$be$comparing$the$cells$in$your$
ratio$table$with$the$correct$answers$–$failure$to$follow$
the$guidelines$provided$may$cause$your$answers$to$be$
shown$as$incorrect$–$I$will$NOT$be$tracing$all$of$your$
formulas$to$try$and$figure$out$if$you$did$them$correctly$
but$didn’t$follow$the$guidelines$
Additional$Ratios$e$Required$
• Include$additional$ratios$that$you$found$that$look$
relevant$to$the$analysis$–$pay$particular$attention$to$
ratios$on$the$common$size$statements$that$may$be$very$
different$between$your$company$and$the$peer$group$
• You$may$also$want$to$calculate$other$ratios$presented$in$
the$book$or$that$you$find$online$if,they,make,sense,for,
the,area,of,greatest,weakness,(make$sure$they$add$value$
to$the$analysis$–$ROA,$total$debt$ratio,$and$debt/equity$
FIN$410$–$Summer$2016$
$
!
ratio$do$NOT$provide$any$additional$information$over$
the$ratios$already$required$and$will$NOT$count$as$
additional$ratios)$
• Identify$whether$the$ratio$would$be$relevant$to$
operating$efficiency,$asset$management,$or$financial$
leverage$in$the$column$indicated$
ALL$calculations$must$be$done$in$Excel$and$I$must$be$able$to$
click$on$the$cell$reference$and$see$the$calculation$–$if$I$only$see$
numbers$where$a$calculation$should$be$I$will$assume$that$
the$information$was$copied$from$somewhere$else$and$I$will$
file$an$academic$integrity$violation$
References$
o You$MUST$have$a$tab$that$has$properly$formatted$APA$references$
included$in$a$text$box$
o You$may$want$to$use$the$bibliography$and$citation$function$in$Word$to$
help$you$format$your$references$
! Note$that$it$is$not$perfect$and$you$need$to$go$back$through$and$
make$sure$that$everything$is$in$the$proper$format$$
! You$will$also$need$to$add$the$letters$after$the$year$when$you$
have$multiple$sources$with$the$same$author$in$the$same$year$
o You$MUST$provide$citations$–using$APA$citation$formate$for$all$data$in$
the$balance$sheet$and$income$statement$
o You$can$provide$one$citation$for$each$set$of$balance$sheets$and$income$
statements–$you$do$not$have$to$cite$each$line$item$in$the$statements$
o Reference$for$the$data$that$I$am$providing:$
$
EtlingePaulsen,$C.$(2016).$SIC$7363$Sample$Peer$Group$Spreadsheet.$Retrieved$date$
from$FIN$410$Blackboard$Course$https://ut.blackboard.com.$
$
o Examples$for$references$from$previous$projects$will$be$provided$–$
also$look$at$Purdue$Owl.$Note$that$you$will$have$a$SEPARATE$set$of$
references$for$the$spreadsheet$and$for$the$written$document.$The$
references$for$each$document$MUST$only$include$those$sources$used$
for$that$document.$
o This$is$the$first$thing$I$will$look$for.$If$EITHER$the$reference$tab$
with$the$references$or$the$citations$on$the$data$tabs$are$missing,$I$
will$stop$grading$and$I$will$file$an$academic$integrity$violation.$
You$will$receive$a$zero$on$the$entire$assignment,$spreadsheet$and$
report,$if$this$is$your$first$violation$at$the$University$or$an$F$in$the$
course$if$it$is$your$second$violation$at$the$University.$$
• General$expectations$
o All$spreadsheets$should$be$organized$and$easy$to$follow$
o You$should$check$spelling$–$use$the$spell$check$in$Excel$–$Don’t$worry$
about$changing$misspelled$words$in$the$statements$that$you$
download$
•
FIN$410$–$Summer$2016$
$
o Remember$that$this$MUST$be$individual$work$
o I$will$expect$you$to$use$information$from$the$notes$to$financial$
statements$(sec.gov)$where$appropriate$–$note$that$since$companies$
are$structured$differently$they$may$not$all$have$the$same$information$
! if$you$cannot$find$one$piece$of$data,$i.e.,$redeemable$preferred$
stock$for$the$cash$flow/debt$ratio,$then$assume$0$
! if$the$missing$data,$i.e.,$it$is$0,$makes$it$impossible$to$calculate$a$
ratio,$put$N/A$in$the$table$–$I$recommend$using$the$=ierror($$
function$in$Excel$to$help$with$this$–$if$there$is$not$a$line$item$for$
the$data$at$all,$then$just$type$in$the$N/A$
! make$sure$you$really$look$for$the$information$–$if$I$find$it$on$
Mergent$or$in$the$notes$and$you$do$not$use$it,$then$you$will$
lose$points$
Expectations$(Requirements)$–$Report$
•
General$format$should$be$similar$to$the$sample$format$provided$including$
margins,$font$style/size,$heading$styles,$etc.$–$make$sure$the$headings$make$
sense$for$the$required$content$–$they$will$not$be$the$same$as$the$headings$in$
the$sample$–$BE#SURE#TO#FOLLOW#THE#REQUIRED#SECTIONS#AND#
INFORMATION#LISTED#BELOW#–#THE#REQUIREMENTS#ARE#DIFFERENT#
THAN#THE#SEMESTER#THAT#THE#SAMPLE#REPORT#FORMAT#WAS#
CREATED$
o Length$including$tables$and$figures$–$no$more$than$four$pages,$single$
spaced$–$I,will,not,read,beyond,four,pages$
o Short$and$concise$is$better$–$four$pages$is$only$to$provide$enough$
space$for$well9designed,tables,and,figures,that,provide,relevant,
information$but$you$may$not$need$that$much$space$if$you$choose$your$
words$carefully$
o Concise$is$important$but$make$sure$that$you$provide$all$required$
information$and$your$purpose$is$clear$
o The$Cover$Page$and$the$Works$Cited$do$not$have$to$be$within$the$four$
page$limit$
o Make$sure$to$follow$APA$style$“works$cited”$and$citations$–$ONLY$
include$sources$for$information$presented$in$the$report,$this$should$
not$be$the$same$reference$table$as$in$the$spreadsheet$–$you$do$not$
need$to$provide$a$source$for$your$calculationse$only$for$data$or$
information$that$you$present$that$is$taken$directly$from$another$
source$
o The$first$thing$I$will$look$for$in$the$report$is$a$Works$Cited$section$
and$inPtext$citations.$If$EITHER$the$works$cited$section$or$a$
substantial$number$of$necessary$inPtext$citations$are$missing,$I$
will$stop$grading$and$I$will$file$an$academic$integrity$violation.$
You$will$receive$a$zero$on$the$entire$assignment,$spreadsheet$and$
report,$if$this$is$your$first$violation$at$the$University$or$an$F$in$the$
course$if$it$is$your$second$violation$at$the$University.$$
FIN$410$–$Summer$2016$
$
•
•
•
o Make$sure$that$everything$is$contained$within$proper$margins$and$
that$it$would$print$well$in$black$and$white$–$this$is$especially$
important$if$you$use$color$in$your$figures$
You$are$writing$the$report$to$Scott$J.$Freidheim,$Chief$Executive$Officer$and$
President$and$Michael$S.$Castleman,$Chief$Financial$Officer$of$the$company$$
Required$Sections$
o Introduction$–$this$should$identify$the$purpose$of$the$document$and$
your$key$findings$
o Basic$DuPont$Analysis$that$presents$ROE$and$the$three$main$ratios$
! Present$one$table$with$the$information$for$these$ratios$for$CDI$
Corp.$and$the$peer$group$for$all$three$years$
! You$may$also$include$figures$IF$they$add$to$the$story$that$you$
are$telling$
! Briefly$discuss$what$these$ratios$tell$you$about$the$broad$areas$
of$strength$and$weakness$
! This$discussion$should$lead$directly$to$the$area$where$you$are$
going$to$focus$your$recommendation$
o Detailed$discussion$of$the$area$for$improvement$
! Present$the$ratios$that$you$looked$at$in$more$detail$to$help$you$
determine$the$specific$area(s)$most$in$need$of$improvement$e$
use$tables$and$figures$as$appropriate$
• This$should$be$within$the$broad$area$of$greatest$
weakness$identified$in$the$DuPont$Analysis$
• Do$NOT$spend$space$discussing$all$of$the$ratios$
calculated$–$focus$on$what$is$relevant$to$the$
recommendation$
! Discuss$the$issues$that$you$see$
• Be$sure$to$consider$more$than$just$the$ratios$–$what$
business$is$the$company$in,$how$is$it$impacted$by$the$
economy,$are$there$global$issues$that$it$needs$to$
consider$
• You$may$want$to$think$about$doing$a$SWOT$analysis$to$
help$you$clarify$your$thoughts$
• Be$sure$to$read$the$information$in$the$10ek$beyond$the$
notes$to$determine$what$the$company$is$already$doing,$
what$they$have$planned,$and$what$they$have$already$
identified$as$risk$factors$
o Recommendation$
! Discuss$your$recommendation$based$on$your$analysis$in$the$
previous$section$
! Make$sure$that$it$is$specific,$for$example$if$you$identify$that$the$
receivables$period$is$long$–$don’t$just$say$increase$sales$or$
decrease$the$receivables$period$$
Audience$
o You$work$for$the$company$–$write$that$way$
FIN$410$–$Summer$2016$
$
$
o Remember$that$your$audience$is$individuals$in$the$highest$level$of$
management$of$the$firm$
o Don’t$waste$their$time$with$unnecessary$information$or$explanation$
o Things$to$do:$
! Be$insightful,$direct,$confident,$and$persuasive$
! Provide$tables$and$figures$that$are$informative$and$allow$the$
reader$to$visualize$the$information$that$you$are$presenting$
• Make$sure$they$are$properly$numbered,$titled,$
captioned,$etc.$and$that$they$follow$APA$guidelines$–$
LOOK$at$Purdue$Owl$for$guidance$
• Discuss$your$analysis$of$the$information$–$what$is$your$
insight$and$why$does$it$matter$for$the$company$
! Use$bullet$points$for$lists$
! Generally$have$more$than$one$paragraph$in$a$section,$except$
maybe$the$introduction$
! Use$active$voice$
! Edit$for$clarity$
o Things$to$avoid:$
! “After$thorough$analysis…”$or$anything$similar$–$it$is$assumed$
that$you$did$a$thorough$analysis$since$that$is$what$you$were$
hired$to$do$
! Formulas$or$definitions$or$other$things$that$are$typical$when$
you$are$trying$to$show$your$professor$that$you$read$the$book$
! Repeating$information$contained$in$a$table$in$the$text$$without$
providing$additional$insight$–$they$can$read$the$numbers$in$the$
tables$and$figures$
! Presenting$tables$or$figures$that$are$not$discussed$–$why$is$this$
information$relevant$to$the$reader?$
! Too$much$repetition$–$it$is$only$4$pages$–$they$won’t$forget$
what$you$said$
! Misspelled$words$or$the$wrong$words$
• Common$misspellings$or$words$used$incorrectly:$loose$
vs.$lose;$except$vs.$accept;$form$vs.$from$
• Never$use$a$thesaurus$without$a$dictionary$as$well$–$
many$words$are$synonyms$in$some$instances$but$not$
others$–$make$sure$you$don’t$use$them$inappropriately$
• Don’t$just$look$for$the$red$squiggly$line$–$proofread$
carefully$
! Sentence$fragments$and$runeon$sentences$
! Too$many$adjectives,$adverbs$or$other$modifiers$
o Note$that$to$edit$and$proofread$carefully,$you$need$to$have$the$first$
draft$finished$well$before$the$deadline$
o Write$as$if$your$job$depends$on$the$impression$that$you$make$
FIN$410$–$Summer$2016$
$
Course$Learning$Objectives:$
This$assignment$helps$support$the$course$learning$objectives$related$to$completing$a$Du$
Pont$Analysis$(1),$communication$(8)$and$spreadsheets$(9).$
$
CDI Corp. (NYS: CDI)
Exchange rate used is that of the Year End reported date
As Reported Annual Balance Sheet
PV of Operating Leases (2.185% inflation)
Report Date
Currency
Audit Status
Consolidated
Scale
Cash & cash equivalents
Accounts receivables, gross
Less: reserve for doubtful accounts
Accounts receivable, net
Prepaid expenses & other current assets
Prepaid income taxes
Deferred income taxes
Total current assets
Computer equipment
Equipment & furniture
Software
Leasehold improvements
Property & equipment, at cost
Less: accumulated depreciation
Property & equipment, net
Deferred income taxes
Goodwill
Other intangible assets, net
Other non-current assets
Total assets
Cash overdraft
Short-term borrowings
Accounts payable
Accrued compensation & related expenses
Other accrued expenses & other current liabilities
Accrued customer rebates
Income taxes payable
Total current liabilities
Deferred compensation
Deferred income taxes
Other long-term liabilities
Total liabilities
Common stock
Additional paid-in capital
Retained earnings (accumulated deficit)
Accumulated other comprehensive income (loss)
Less: common stock in treasury, at cost
Total CDI Corp. shareholders' equity
Noncontrolling interest
$33,297.97
12/31/2015
USD
Not Qualified
Yes
Thousands
16932
207627
1942
205685
12577
5126
240320
49488
20485
25129
8567
103669
84941
18728
3228
45794
20427
10600
339097
18831
30262
34464
19903
323
103783
7723
1530
4818
117854
2216
74774
210875
-14135
52487
221243
-
Cost of Debt at 5%
12/31/2014
USD
Not Qualified
Yes
Thousands
36324
221528
1950
219578
8302
753
4138
269095
49220
19443
30404
8096
107163
86813
20350
9203
50630
12424
10518
372220
1250
30071
36005
14502
1015
82843
9094
1034
4896
97867
2208
72023
258113
-6207
52487
273650
703
Total equity
221243
274353
$34,962.87
12/31/2013
USD
Not Qualified
12/31/2012
USD
Not Qualified
Yes
Thousands
45479
233506
2893
230613
8033
2378
4724
291227
46427
19429
28249
8935
103040
82512
20528
5260
62280
15157
11355
405807
2812
38019
46123
16037
245
103236
9393
2994
5010
120633
2196
70104
265207
-712
52487
284308
866
Yes
Thousands
43652
226193
2563
223630
10515
698
3850
282345
40281
18881
29538
8549
97249
75159
22090
7061
62009
16782
10418
400705
2751
41157
43571
12825
2145
1759
104208
8398
1875
6444
120925
2182
67863
259912
1501
52487
278971
809
285174
279780
CDI Corp. (NYS: CDI)
Exchange rate used is that of the Year End reported date
As Reported Annual Income Statement
Report Date
Currency
Audit Status
12/31/2015
USD
Not
Qualified
Consolidated
Yes
Scale
Thousands
Revenue
985494
Cost of services
800593
Gross profit
184901
Operating & administrative expenses
187433
Restructuring & other related costs
4217
Impairment
21537
Loss on disposition
310
Operating profit (loss)
-28596
Other income (expense), net
61
Earnings (loss) from continuing operations before income tax - U.S.
-20758
Earnings (loss) from continuing operations before income tax - foreign
-7777
Earnings (loss) before income taxes
-28535
Current federal income taxes
-3742
Current state income taxes
-56
Current foreign income taxes
1732
Total current income taxes
-2066
Deferred federal income taxes
6224
Deferred state income taxes
4417
Deferred foreign income taxes
-24
Total deferred income taxes
10617
Income tax expense (benefit)
8551
Net earnings (loss)
-37086
Less: earnings (loss) attributable to the noncontrolling interest
83
Net earnings (loss) attributable to CDI Corp.
-37003
Weighted average shares outstanding - basic
19676
Weighted average shares outstanding - diluted
19676
Year end shares outstanding
19700
Net earnings (loss) per share - basic
-1.88
Net earnings (loss) per share - diluted
-1.88
Number of staff employees
900
Number of billable employees
7500
Number of employees
8400
Number of common stockholders
343
Number of beneficiary stockholders
5000
Foreign currency translation adjustments
-8192
12/31/2014
USD
Not
Qualified
Yes
Thousands
1122972
916415
206557
182873
3645
14653
5386
-228
-5488
10646
5158
3854
729
2865
7448
-4284
-822
-201
-5307
2141
3017
65
3082
19577
19790
19621
0.16
0.16
800
8600
9400
344
3500
-
12/31/2013
USD
Not
Qualified
Yes
Thousands
1087859
881218
206641
180009
5716
20916
-268
15290
5358
20648
3040
870
1884
5794
328
1669
-91
1906
7700
12948
-64
12884
19442
19739
19495
0.66
0.65
900
9000
9900
360
4000
-
CDI Corp. (NYS: CDI)
Exchange rate used is that of the Year End reported
date
As Reported Annual Cash Flow
Report Date
Currency
Audit Status
12/31/2015
USD
Not
Qualified
Consolidated
Yes
Scale
Thousands
Net income (loss)
-37086
Depreciation
Amortization
Depreciation & amortization
11679
Deferred income tax expense (benefit)
10603
Stock-based compensation
2355
Impairment
21537
Loss on disposition
310
Loss (gain) on disposal of assets
-764
Accounts receivable, net
17183
Prepaid expenses & other current assets
-3155
Accounts payable
-1528
Accrued compensation & related expenses
-1504
Accrued expenses & other current liabilities
2391
Income taxes receivable/payable
-5350
Other non-current assets
-2180
Deferred compensation
Other non-current liabilities
-226
Net cash flows from operating activities
14265
Additions to property & equipment
-7940
Acquisitions, net of cash acquired
-32174
Proceeds from disposition
430
Proceeds from sale of assets
1236
Other investing activities
Net cash flows from investing activities
-38448
Dividends paid to shareholders
-10235
Payment of acquisition related earn out
Borrowings on credit facility
88677
Repayments on credit facility
-70967
Payment of debt issuance costs
-1437
Change in book overdraft
Common shares withheld for taxes
-302
Excess tax benefit from share-based compensation awards
52
Net cash flows from financing activities
5788
Effect of exchange rate changes on cash
-997
Net increase (decrease) in cash & cash equivalents
-19392
Cash & cash equivalents at beginning of period
36324
Cash & cash equivalents at end of period
16932
12/31/2014
USD
Not
Qualified
Yes
Thousands
3017
9220
1497
-5332
2708
14653
306
5753
-1273
-6962
-11131
2123
339
-30
-100
14788
-8774
75
-8699
-10176
-187
115544
-116893
-1709
-498
148
-13771
-1473
-9155
45479
36324
Cash paid for interest
Cash paid (received) for income taxes, net
291
3259
147
4845
12/31/2013
USD
Not
Qualified
Yes
Thousands
12948
8721
1625
1986
2827
317
-9301
2488
-4751
3823
-3505
388
-32
-1434
16100
-7529
142
-7387
-7589
77619
-77405
1709
-858
143
-6381
-505
1827
43652
45479
133
9384
Peer Group Balance Sheet
Market Cap Weighted Average
Report Date
Scale
12/31/2015
Thousands
Cash & equivalents
460,673
Trade accounts receivable, gross
2,931,068
Less: allowance for doubtful accounts
63,424
Trade accounts receivable, net
2,867,645
Prepaid expenses & other current assets
88,424
Deferred taxes
Total current assets
3,416,742
Equipment, furniture & fixtures
110,997
Computer hardware & software
137,952
Leasehold improvements
169,262
Property & equipment, other
25,145
Property & equipment, gross
443,355
Accumulated depreciation
326,790
Net property & equipment
116,566
Goodwill, net
984,220
Intangibles, net
295,130
Other assets
512,834
Total assets
5,325,492
Accounts payable & accrued liabilities
1,085,693
Short-term borrowings
36,019
Other current liabilities
1,163,970
Total current liabilities
2,285,681
Long-term debt
668,637
Other long-term liabilities
397,351
Common stock
7,273
Paid-in capital
2,083,384
Earnings invested in the business
1,393,686
Treasury stock, at cost
1,384,413
Accumulated other comprehensive income (loss)
167,737
Total stockholders' equity
1,932,193
12/31/2014
Thousands
449,772
2,857,042
71,291
2,785,751
106,631
41,864
3,384,018
117,576
144,504
177,315
29,329
468,726
351,717
117,008
803,598
235,868
464,390
5,004,882
1,007,464
46,581
1,192,870
2,246,916
349,968
324,228
7,208
2,007,045
1,181,744
1,024,077
88,150
2,083,770
12/31/2013
Thousands
481,440
2,924,687
75,098
2,849,589
114,868
50,217
3,496,114
126,454
149,015
201,463
30,688
507,620
382,255
125,366
814,199
255,666
356,478
5,047,822
992,350
28,892
1,293,771
2,315,013
383,984
283,220
7,213
1,966,237
962,194
930,360
60,321
2,065,605
12/31/2012
Thousands
416,352
2,858,062
75,013
2,783,049
118,328
46,686
3,364,413
128,655
145,249
196,334
30,115
500,353
366,431
133,922
766,307
263,912
287,047
4,815,601
949,266
201,628
1,249,307
2,400,201
377,878
263,075
7,211
1,875,087
802,262
936,628
26,513
1,774,447
Peer Group Income Statement
Market Cap Weighted Average
Report Date
12/31/2015
Thousands
Scale
Revenue from services
13,218,162
Cost of services
10,893,897
Gross profit
2,324,266
Selling, general & administrative expenses
1,793,302
Depreciation, Amortization and Asset impairment
62,930
Earnings (loss) from operations
468,033
Interest expense
29,536
Interest income
1,583
Other non-operating income (expense)
3,142
Earnings (loss) from operations before taxes
443,222
Income tax expense (benefit)
161,084
Earnings (loss) from discontinued operations, net of taxes
5,928
Net earnings (loss)
288,066
Less: Earnings allocated to participating securities
Net earnings available to common shareholders
288,066
Number of full time employees
18,624
Number of temporary employees
98,758
Total number of employees
117,382
12/31/2014
Thousands
14,058,734
11,636,507
2,422,227
1,880,067
63,580
478,580
25,400
2,782
4,623
451,338
167,143
413
283,782
112
283,670
17,925
96,642
114,567
12/31/2013
Thousands
13,668,734
11,348,881
2,319,854
1,900,813
68,190
350,851
30,193
2,336
2,178
320,816
122,276
6,815
205,356
240
205,116
17,256
93,444
110,700
FY 2015
CDI Corp
Peer
12/31/2015 12/31/2015
FY 2014
CDI Corp
Peer
12/31/2014 12/31/2014
ROE
Operatng Efficiency
Net Profit Margin
Gross Profit Margin
EBITDA Margin
Operating Profit Margin
Pre-tax Margin
Revenue per employee ($)
Net income per employee ($)
Effective tax rate
Asset Management
Total Asset Turnover (times)
Receivables Turnover (times)
Receivables Period (days)
Inventory Turnover (times)
Inventory Period (days)
Net Fixed Asset Turnover (times)
PPE Turnover (times)
Payables Turnover (times)
Payables Period (days)
Cash Ratio (times)
Current Ratio (times)
Quick Ratio (times)
Operating Cycle (days)
Cash Cycle (days)
Financial Leverage
Equity Multiplier (times)
Long-Term Debt/Equity Ratio (times)
Interest-bearing Debt/Equity Ratio (times)
Long-Term Debt Ratio (times)
Times Interest Earned Ratio (times)
Cash Coverage Ratio (times)
Cash Flow to Debt Ratio (times)
N/A
Additional Ratios
N/A
FY 2013
CDI Corp
12/31/2013
FY 2013
Peer
12/31/2013
N/A
Firm Area
Etling-Paulsen, C. (2016). SIC 7363 Sample Peer Group Spreadsheet. Retrieved June 10,
from FIN 410 Blackboard Course https://ut.blackboard.com
CDI Corp. (2015a.) Balance Sheets Fiscal Years 2012 – 2015. Retrieved June 10, 2016, fr
Mergent Online:
http://www.mergentonline.com.esearch.ut.edu
CDI Corp. (2015b.) Income Statements Fiscal Years 2013 – 2015. Retrieved June 10, 201
from Mergent Online:
http://www.mergentonline.com.esearch.ut.edu
CDI Corp. (2015c.) Statement of Cash Flows Fiscal Years 2013 – 2015. Retrieved June 10
2016, from Mergent Online:
http://www.mergentonline.com.esearch.ut.edu
CDI Corp. (2015c.) Notes to Consolidated Financial Statements: Leased Property 10
December 31, 2015. Retrieved June 10, 2016 from Securities and Exchange
Commission:
http://www.sec.gov
preadsheet. Retrieved June 10, 2016,
blackboard.com
15. Retrieved June 10, 2016, from
2015. Retrieved June 10, 2016,
2015. Retrieved June 10,
ments: Leased Property 10-k dated
6 from Securities and Exchange
Purchase answer to see full
attachment