Description
Choose two (2) publicly traded companies in the same industry. I recommend you choose an industry that interests you. Provide me with paper copies of the financial statements (balance sheets and income statements) used, as well as the data source for the analysis. You may use a spreadsheet program or perform manual calculations. A presentation will be included with the data. Show formulas (data plugged into the formula) and the final result for full credit.
1. 3 year trend: 5 items for 3 years for each company
2. Common size statements. 1 common size income statement and 1 common size balance sheet for each company (5 accounts min IS & 10 accounts min for BS).
3. The same 5 financial ratios for each company (one year only required). They should be meaningful for your companies and include one ratio from each of the five categories of ratios in chapter 19.
Explanation & Answer
Here is the answer. Thanks
Companies Selected: Eastman Chemical Company and Celanese Corporation from the chemical industry.
About Eastman Chemical Company: Eastman Chemical Company, established in 1920, is a global speciality
chemical company. The headquarter of the Eastman Chemical is in Kingsport, Tennessee. The porducts offered by
the company include additives & functional products, advanced materials, chemical Intermediates and fibers,
adhesives & plasticizers etc.
About Celanese Corporation: Celanese Corporation, established in 1918, is a global speciality and chemical
material company. The headquarter of the Celanese Corporation is in Irving, Texas. The porducts offered by the
company include acetyl intermediates, advanced engineered materials, industrial specialties etc.
ical industry.
lobal speciality
he porducts offered by
ediates and fibers,
y and chemical
ducts offered by the
s etc.
EASTMAN CHEMICAL CO (EMN)
Income Statement
(All figures are in USD million)
2014
Revenue
9527
Cost of revenue
7306
Gross profit
2221
Operating expenses
Research and development
227
Sales, General and administrative
755
Other operating expenses
77
Total operating expenses
1059
Operating income
1162
Interest Expense
187
Other income (expense)
15
Income before taxes
990
Provision for income taxes
235
Net income from continuing operations
755
Net income from discontinuing ops
2
Other
-6
Net Income
751
Earnings Per Share (EPS)
5,03
2015
9648
7068
2580
2016
9008
6658
2350
251
762
183
1196
1384
263
8
1129
275
854
219
703
45
967
1383
281
-53
1049
190
859
-6
848
-5
854
5,71
5,8
EASTMAN CHEMICAL CO (EMN)
Balance Sheet
(All figures are in USD million)
2014
Assets
Current assets
Cash
Cash and cash equivalents
214
Total cash
214
Receivables
936
Inventories
1509
Other current assets
514
Total current assets
3173
Non-current assets
Property, plant and equipment
Gross property, plant and equipment
11026
Accumulated Depreciation
-5939
Net property, plant and equipment
5087
Goodwill
4486
Intangible assets
2905
Other long-term assets
421
Total non-current assets
12899
Total assets
16072
Liabilities and stockholders' equity
Liabilities
Current liabilities
Short-t...
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