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FIN515—Week 3 Project: Financial
Statement Analysis (continued)
Continuing with your Week 2 Project, now your CEO after reviewing your earlier Week 2
PowerPoint submission has asked your team to complete an additional benchmark analysis
task, before the upcoming Board Meeting. For this part of the project your team needs to do an
analysis of the market and operational characteristics of your company and its financial profile.
For this project, your team will need to select four companies that are direct competitors of
your company. This sample selection should be based on revenue, profitability, market
capitalization, market segment and product characteristics.
This project is an additional benchmark data analytics project. The objective of this part of the
project will be to do a comparative financial analysis of your company with the averages of the
sample of four companies that will form your comparative group.
The project deliverables will be another PowerPoint presentation to the CEO explaining the
financial performance of your company compared to the sample of four comparable
companies. The analysis should include the following deliverables:
1. An explanation of the logic of the selection of the four comparable group companies. Why
were these companies selected?
2.Your team’s data extraction strategy, process and methodology.
3. A financial comparison of your company to the average of the comparator group on the
following financial factors.
a. Profitability
b. Debt Management
c. Liquidity
d. Asset Management
e. Value Creation – based on a the 3-year trend in Free
Cash Flow
In order to complete this project, your team has to select which ratios you are going to use in
each of the five categories given above. In addition to that, your team will have to briefly
explain why you are selecting the ratios you are using in your benchmark study.
Then your team will have to collect the financial data for your company and the financial data
of the four competitor companies. The data can be collected from two financial data bases such
as, Yahoo Finance, Lexis Nexis, Plunkett, or bizstats.com. Your team will then have to collect
and calculate the averages of the four competitor companies. (Please note that no ratio
FIN515—Week 3 Project: Financial
Statement Analysis (continued)
calculations are required for each company, the ratios should be readily available on the
websites noted above. You will only need to calculate the average ratios for the four companies
combined.)
Your team will proceed to developing a PowerPoint presentation presenting the comparison
and your team’s commentary of what your team discerns from the comparison. PowerPoint
should not have more than ten slides. Just like the previous project your team should use
Webex or Voicethread, and prepare an oral presentation that presents your PowerPoint
presentation. Each team member must participate in this presentation.
FIN515—Week 3 Project: Financial
Statement Analysis (continued)
Rubric: Second Project
FIN515
Possible
Points
Ratios selected
Ratio Extraction
&
Average Calculation
12
Criteria and Point Range
0-3
No referent
provided.
Insufficient or
incorrect ratios
used.
0-2
Ratios are not
provided, and
referencing was not
provided.
8
Form
3-4
12
8
7-9
Ratios mostly
appropriate.
Appropriate
referent
selected.
5-6
Some ratios are
incorrect, and
referencing is minimal.
.
.
0-3
Evaluation
4-6
Some ratios
questionable.
Inappropriate
referent selected.
4-6
Ratios generally
reflect the data
source and are
properly
referenced.
7-9
Evaluation
generally correct.
Minimal or incorrect May be not
No evaluation, or
Evaluation, or
completely
evaluation not
evaluation not
supported by
based on findings
original.
findings or
insufficient in
quantity.
0-2
3-4
5-6
Significant
Minor problems with Writing and
problems with
writing or presentation..presentation
generally
presentation or format.
correct with a few
exceptions.
10-12
Ratios and
referent
appropriate.
7-8
.
Ratios
accurately
reflect the data
source and are
properly
referenced.
10-12
Evaluation
fully
supported by
findings.
7-8
Virtually no
errors in
writing or
presentation.
DuPont Financial
Analysis
By: Khadijah Nazmeen & Durjay Majlish
Industry Financial Ratios Benchmarks
•
•
•
•
•
•
•
•
•
•
Food services and drinking places (Asset Class: All)
Corp Average Financial Ratios 2013
Return on Sales 7.23%
Return on Assets 13.01%
Return on Net Worth
36.27%
Quick Ratio 67.24
Current Ratio
93.35
Inventory Turnover
6,512.05
Assets: Sales
55.58
Tot Liabilities: Net Worth 278.75
Gross Profit Margin
• Gross Profit Margin: 60.53 %
• Operating Margin: 19.70 %
• Net Profit Margin: 16.63 %
• Net Sales: $44,294.00
• Cost of goods sold: $17,482.00
• Gross Profit: $26,812.00
• Operating Income: 8,728.00
Coca-Cola Company
Gross Profit Margin
70.00%
60.00%
Gross Profit
Margin, 60.53%
50.00%
40.00%
30.00%
20.00%
Operating
Margin, 19.70%
10.00%
0.00%
Gross Profit Margin
Net Profit
Margin, 16.63%
Asset Turnover Ratio
• Inventory Turnover Ratio: 6.80
• Days in Inventory: 53.67 days
• Cost of Goods Sold: $17,482.00
• Beginning Inventory balance:
$2,239.00
4.5
Inventory
Turnover
Ratio, 4.3
Coca-Cola Company
Assets Turnover Ratio
Cost of Goods,
3.5
4
3.5
3
Days in
Inventory, 2.5
2.5
2
1.5
1
0.5
0
Coca-Cola Company
Beginning
Inventory
Balance, 4.5
Return on Assets (ROA)
• Return on Assets: 3.28
• Net Income: 2,951.00
• Average Total Assets: 90,093.00
Coca-Cola Company
Return on Assets (ROA)
Average Total
Assets, 90093
Average Total Assets
Net Income
Return on Assets
Net Income,
2951
Return on
Assets, 3.28
Return on Assets (ROA)
Return on Equity (ROE)
• Return on Equity: 67.81
• Net Income: 2,951.00
• Average Shareholders' Equity: 4,352.00
Liquidity Ratios
• Working Capital: -2,351.00
• Quick Ratio: 1.61
• Acid Test Ratio: 1.20
• Cash Ratio: 0.76
• Current Ratio: 0.76
Coca-Cola Company
Liquidity Ratios
6.00%
5.00%
4.00%
3.00%
2.00%
1.00%
0.00%
Working
Capital
Quick Ratio
Acid Test
Ratio
Cash Ratio
Current
Ratio
Profitability Ratios
• Gross Profit Margin: 60.53 %
• Operating Margin: 23.45 %
• Net Profit Margin: 22.70 %
• Return on Assets: 31.03 %
• Return on Working Capital: -313.31 %
• Return on Equity: 27.16 %
• Return on Invested Capital: 52.55 %
• Return on Investment Ratio: 13.26 %
Leverage Ratio
Coca-Cola Company
Leverage Ratio
15
• Debt to Assets
10
(Debt Ratio): 1.60
• Debt to Equity
5
(Financial Leverage Ratio): 1.40
0
• Capitalization Ratio: 0.51
-5
• Interest coverage ratio
(Times interest earned): 12.75
-10
• Long-term debt to Working Capital: -12.08
-15
12.75
1.6
1.4
0.51
-12.08
Efficiency Ratio
Coca-Cola Company
• Cash Turnover Ratio: 6.06
• Sales to Working Capital: -18.84
• Sales to Fixed Assets: 2.70
• Sales to Total Assets: 1.87
Sales to
Working
Capital, 18.84
20
15
Sales to Fixed
Assets, 2.7
10
5
0
Cash Turn Over
Ratio, 6.06
Sales to Total
Assets, 1.87
Other Ratios
Coca=Cola Company
Other Ratios
• Current Liabilities to
Total Liabilities: 0.25
• Current Liabilities to
Current Assets: 1.32
• Long-term Debt to
Current Liabilities: 2.94
• Debt to Income Ratio: 5.17
• Cash to Current Liabilities: 0.76
Cash to Current Liabilities
Long-term Debt to Current Liabilities
Current Liabilities to Current Assets
Current Liabilities to Total Liability
Current Liabilities Current Liabilities
to Total Liability to Current Assets
Other Ratios
0.25%
1.32%
Other Ratios
Long-term Debt
to Current
Liabilities
2.94%
Cash to Current
Liabilities
5.17%
Reference
• 2015 Financial Content, 5000 Industry Choices, Local-US Industry
Financials. (n.d.). Retrieved May 11, 2017, from
http://bizstats.com/corporation-industryfinancials/accommodation-food-services-72/food-services-anddrinking-places-722/show
• United State Security and Exchange Commission Form 10-K. (2015,
December 31). Retrieved May 11, 2017, from
https://www.sec.gov/Archives/edgar/data/21344/00000213441
6000050/a2015123110k.htm#s1D146C048883EF685055CEF8D1
831007
DuPont Financial
Analysis
By: Khadijah Nazmeen & Durjay Majlish
Industry Financial Ratios Benchmarks
•
•
•
•
•
•
•
•
•
•
Food services and drinking places (Asset Class: All)
Corp Average Financial Ratios 2013
Return on Sales 7.23%
Return on Assets 13.01%
Return on Net Worth
36.27%
Quick Ratio 67.24
Current Ratio
93.35
Inventory Turnover
6,512.05
Assets: Sales
55.58
Tot Liabilities: Net Worth 278.75
Gross Profit Margin
• Gross Profit Margin: 60.53 %
• Operating Margin: 19.70 %
• Net Profit Margin: 16.63 %
• Net Sales: $44,294.00
• Cost of goods sold: $17,482.00
• Gross Profit: $26,812.00
• Operating Income: 8,728.00
Coca-Cola Company
Gross Profit Margin
70.00%
60.00%
Gross Profit
Margin, 60.53%
50.00%
40.00%
30.00%
20.00%
Operating
Margin, 19.70%
10.00%
0.00%
Gross Profit Margin
Net Profit
Margin, 16.63%
Asset Turnover Ratio
• Inventory Turnover Ratio: 6.80
• Days in Inventory: 53.67 days
• Cost of Goods Sold: $17,482.00
• Beginning Inventory balance:
$2,239.00
4.5
Inventory
Turnover
Ratio, 4.3
Coca-Cola Company
Assets Turnover Ratio
Cost of Goods,
3.5
4
3.5
3
Days in
Inventory, 2.5
2.5
2
1.5
1
0.5
0
Coca-Cola Company
Beginning
Inventory
Balance, 4.5
Return on Assets (ROA)
• Return on Assets: 3.28
• Net Income: 2,951.00
• Average Total Assets: 90,093.00
Coca-Cola Company
Return on Assets (ROA)
Average Total
Assets, 90093
Average Total Assets
Net Income
Return on Assets
Net Income,
2951
Return on
Assets, 3.28
Return on Assets (ROA)
Return on Equity (ROE)
• Return on Equity: 67.81
• Net Income: 2,951.00
• Average Shareholders' Equity: 4,352.00
Liquidity Ratios
• Working Capital: -2,351.00
• Quick Ratio: 1.61
• Acid Test Ratio: 1.20
• Cash Ratio: 0.76
• Current Ratio: 0.76
Coca-Cola Company
Liquidity Ratios
6.00%
5.00%
4.00%
3.00%
2.00%
1.00%
0.00%
Working
Capital
Quick Ratio
Acid Test
Ratio
Cash Ratio
Current
Ratio
Profitability Ratios
• Gross Profit Margin: 60.53 %
• Operating Margin: 23.45 %
• Net Profit Margin: 22.70 %
• Return on Assets: 31.03 %
• Return on Working Capital: -313.31 %
• Return on Equity: 27.16 %
• Return on Invested Capital: 52.55 %
• Return on Investment Ratio: 13.26 %
Leverage Ratio
Coca-Cola Company
Leverage Ratio
15
• Debt to Assets
10
(Debt Ratio): 1.60
• Debt to Equity
5
(Financial Leverage Ratio): 1.40
0
• Capitalization Ratio: 0.51
-5
• Interest coverage ratio
(Times interest earned): 12.75
-10
• Long-term debt to Working Capital: -12.08
-15
12.75
1.6
1.4
0.51
-12.08
Efficiency Ratio
Coca-Cola Company
• Cash Turnover Ratio: 6.06
• Sales to Working Capital: -18.84
• Sales to Fixed Assets: 2.70
• Sales to Total Assets: 1.87
Sales to
Working
Capital, 18.84
20
15
Sales to Fixed
Assets, 2.7
10
5
0
Cash Turn Over
Ratio, 6.06
Sales to Total
Assets, 1.87
Other Ratios
Coca=Cola Company
Other Ratios
• Current Liabilities to
Total Liabilities: 0.25
• Current Liabilities to
Current Assets: 1.32
• Long-term Debt to
Current Liabilities: 2.94
• Debt to Income Ratio: 5.17
• Cash to Current Liabilities: 0.76
Cash to Current Liabilities
Long-term Debt to Current Liabilities
Current Liabilities to Current Assets
Current Liabilities to Total Liability
Current Liabilities Current Liabilities
to Total Liability to Current Assets
Other Ratios
0.25%
1.32%
Other Ratios
Long-term Debt
to Current
Liabilities
2.94%
Cash to Current
Liabilities
5.17%
Reference
• 2015 Financial Content, 5000 Industry Choices, Local-US Industry
Financials. (n.d.). Retrieved May 11, 2017, from
http://bizstats.com/corporation-industryfinancials/accommodation-food-services-72/food-services-anddrinking-places-722/show
• United State Security and Exchange Commission Form 10-K. (2015,
December 31). Retrieved May 11, 2017, from
https://www.sec.gov/Archives/edgar/data/21344/00000213441
6000050/a2015123110k.htm#s1D146C048883EF685055CEF8D1
831007