material:Dell is main company,and Apple is competitor company.(you can get their balance sheet and income statement in yahoo finance) and read the MD&A located in the annual report, as well as the footnotes to the various financial statements. These are the pieces of information that management wants you to know, (or is required to tell you!), in addition to “the numbers.” You can find 10k from the link below:http://www.sec.gov/edgar/searchedgar/companysearch…
MD&A https://www.sec.gov/Archives/edgar/data/354950/000…
Write about 3 page summary (double space) in which you describe what you observe about the financial ratios for your company. And you can also discuss the most interesting and relevant changes from one year to the next from your calculations. After reading the MD&A and footnotes, you should have a good idea of why certain ratios and figures changed from one year to the next. Some things you may want to consider to write are:
Discuss the company’s position in liquidity, asset management, financial leverage and profitability over four years and compare these ratios over years and compare the most recent year’s ratios with its competitor. Identify strength and weakness of the firm.
Has ROE been rising or falling? If so, what has contributed to this change? ( DuPont Decomposition, three factors)
Has the company drastically increased or decreased its use of debt?
What trends do you see developing in the data?
Do you see any major changes in the financial status of the company over the time period?
The goal with this project is to not only give you a chance to calculate the ratios that accountants and analysts frequently use when evaluating a company, but to also make you look for reasons, (i.e. “drivers”), for those changes and to think of your own reasons if none are given. If you only do the calculations but do not discuss why certain changes took place, then you haven’t achieved the goal of the assignment. Therefore, do your best to go past the numbers!
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