Assignment 1- Part 1
Corporate Finance
You are required to run the following tasks on the firm that you have chosen (The listed
company you have already selected) Obtain the company's financial statements (income
statement, balance sheet, and cash flow statement) for the most recent five years.
Calculate Financial Ratios: Compute the following financial ratios and compare it with the
industry leader/another firm from the same industry.
o Liquidity Ratios:
Current Ratio
Quick Ratio
Cash Ratio
o Solvency Ratios:
Debt-to-Equity Ratio
Debt Ratio
Times Interest Earned
o Profitability Ratios:
Gross Profit Margin
Operating Profit Margin
Net Profit Margin
Return on Assets (ROA)
o Efficiency Ratios:
Inventory Turnover
Accounts Receivable Turnover
Accounts Payable Turnover
Asset Turnover
Perform DuPont Analysis:
o 3-Point Analysis: Break down ROE into three components: Net Profit Margin, Asset
Turnover, and Financial Leverage.
o 5-Point Analysis: Further break down Net Profit Margin into its components: Gross
Profit Margin, Operating Expense Ratio, and Interest Expense Ratio.
Analyze the calculated ratios and DuPont analysis to assess the firm's financial
performance.
How has the firm's liquidity, solvency, profitability, and efficiency changed over
the past five years?
How does the firm compare to industry benchmarks or competitors?
What are the key drivers of the firm's ROE?
Are there any areas of concern or strengths based on the analysis?
Grading Rubric:
Submit your analysis in a well-formatted report, including all calculations,
interpretations, and conclusions.
Use tables and/or charts to present your data clearly.
Cite all sources of financial data used in your analysis.
Needs Unsatisfactory
Criteria Excellent (4-5) Good (3) Improvement (2) (1)
Clearly
presented and Ideas are generally Difficult to follow
Clarity and logically clear and some and significant Ideas are unclear
Coherence connected. inconsistencies. inconsistencies. and disorganized.
Information is Information is Information is Information is
Accuracy and accurate and generally accurate, inaccurate in some largely inaccurate
Relevance relevant with some errors. areas. or irrelevant.
The analysis is
in-depth, The analysis is The analysis is
insightful, and adequate, but it superficial or lacks
Depth and well-supported could be deeper or supporting There is little or
Analysis by evidence. more insightful. evidence. no analysis.
Work is generally The work is poorly The work is
The work is organized, but with organized and disorganized and
Organization well-organized some weaknesses lacks a clear difficult to
and Structure and structured in structure. structure. follow.
Writing is free Numerous
of grammatical There are few There are some grammatical
errors and grammatical errors grammatical errors errors and
Grammar and mechanical or mechanical or mechanical mechanical
Mechanics mistakes. mistakes. mistakes. mistakes.
