Team Project: Analysis of Accruals, Earnings per Share, and Net Profit Margin
As a team, select an industry to analyze. Reuters provides lists of industries under Sectors and Industries atwww.reuters.com. (Click on an industry and then select Company Rankings for a list of members of that industry.) Each team member should acquire the annual report or 10-K for one publicly traded company in the industry, with each member selecting a different company. (Library files, the SEC EDGAR service atwww.sec.gov, or the company itself are good sources.)
Required:
On an individual basis, each team member should write a short report answering the following questions about the selected company. Discuss any patterns across the companies that you as a team observe. Then, as a team, write a short report comparing and contrasting your companies.
1. From the income statement, what is the company’s basic earnings per share for each of the last three years?
2. Ratio analysis:
a. What does the net profit margin ratio measure in general?
b. Compute the net profit margin ratio for the last three years.
c. What do your results suggest about the company? (You may refer to the Management Discussion and Analysis section of the 10-K or annual report to read what the company says about the reasons for any change over time.)
d. If available, find the industry ratio for the most recent year, compare it to your results, and discuss why you believe your company differs or is similar to the industry ratio.
3. List the accounts and amounts of accrued expenses payable on the most recent balance sheet. (You may find the detail in the notes to the statements.) What is the ratio of the total accrued expenses payable to total liabilities?
We need at least 10 more requests to produce the solution.
0 / 10 have requested this problem solution
The more requests, the faster the answer.