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American Corporate Analysis




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Runninghead: American Corporate Analysis 1
American Corporate Analysis
Lisa Mains, Ronald Rubanic, Rebecca TanTan, and Steven Wert
Kimberly Warren
March 24, 2014

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Runninghead: American Corporate Analysis 2
American Corporation Analysis
In week three team D was instructed to select an American corporation, visit its website, and
download its financial statements. The idea of analyzing the University of Phoenix’s’ parent
company, Apollo Group, Incorporated, annual report to conduct comparative and ratio analysis
on the financial statements seemed liked a good choice for a group of four students and friends
who have a vested interest in the company. We would like to learn more about the financial
condition, how strong the company is performing, how the financial data and items have changed
by increase or decrease from base years to the current year, and what that percentage is, if it has
the ability to meet its short-term obligations, meet unexpected need for cash, and if it will prove
to be successful from net income profits for years to come. Rebecca, Lisa, Steve, and Ronald will
use intracompany comparatives, like horizontal analysis to evaluate Apollo’s financial data over
periods of time, to determine increase or decrease in item amounts by comparing base years
amounts with the current year on the balance sheet and net income statement, and to compare the
percentage of change. We will also use vertical analysis to express each item as a percentage of
net sales on the income statement or total assets on the balance sheet and compare the
percentages change in increase or decrease over periods of time. We will use ratio analysis to
highlight the significance of the financial data. We will use liquidity ratios on the balance sheet
to determine the company’s’ ability to meet and pay its short-term debt. Lastly, we will use
profitability ratios to illustrate the income of the company over a period of time. The following
paragraphs will demonstrate to the reader our understanding of how to conduct and use
comparative and ratio analysis on Apollo’s’ financial statements and to apply analysis within our
chosen company to best illustrate the methods and tools.

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Runninghead: American Corporate Analysis 3
Comparative Analysis
Horizontal Analysis
Vertical analysis
Ratio Analysis
Liquidity Ratios
Liquidity ratios measure the short-term ability of the company to pay its maturing obligations
and to meet unexpected needs for cash. Short-term creditors and suppliers are very interested in
evaluating this ratio. The ratios that were used to evaluate the liquidity of Apollo were working

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