Public Company Summary Prompt This assignment is designed to help you relate what you lean in class...

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Public Company Summary Prompt

This assignment is designed to help you relate what you lean in class to real world organizations.
Please follow the instructions below carefully. Be sure to show your work! Students that put
forth excellent quality work will be awarded extra credit points.
1. Choose a company that you will focus on for this assignment. Once you select a
company, you cannot switch! Some notes on choosing a company:
a. Choose a company that you can obtain lots of information on. This can be either a
publically traded company or a company you work for or own.
. Companies in traditional industries (manufacturing, consumer discretionary) may
e easier to work with.
c. Resources: BusinessWeek, SEC Online (Edgars), NU Li
ary (Reference USA,
D&B Million Dollar Database), yahoo.com/finance, Morningstar.com, Darkside
Article.
d. E-mail me the name and ticker of the company you select by Saturday 4/11
2. Create a common size income statement for 2017 and 2018 for your company
a. Provide a statement that analyzes your work and demonstrates your understanding
of the common size techniques.
3. Perform ratio analysis on your company for 2017 and 2018. At a minimum you should
have 5 ratios for each year. (I want to see the calculations).
a. Provide a statement that demonstrates your understanding of what the ratios mean
in the context of your company.
4. Analyze your company’s capital structure. At a minimum you should:
a. Provide a statement about the company’s capital structure and any changes you
would recommend making. This should include:
i. The company’s equity position and items like: number of shares, market
price, EPS, PE ratio, and book to market value.
ii. The company’s debt with a particularly focus on bonds and items like:
YTM, rating, ability to pay.
5. Calculate your company’s WACC and Analyze if it is optimal.
a. Be sure to clearly
eakout the components (“Darkside” article may help with
this).
. Provide a clear statement that demonstrates your understanding of WACC and if
it is optimal for your company.
Note: If you have any questions about this assignment or need assistance please contact me.
Submission Instructions: Summary due no later than Thursday 4/30 at Midnight.

publiccompanysummary-pobgqgiq.pdf

Tanmoy · Accepted Answer

Ratio Analysis
		The Home Depot Inc.					The Home Depot Inc.
		Consolidated Statements of Earnings					Consolidated Balance Sheets
		In millions, except per share data	Fiscal 2018	Fiscal 2017			In millions, except per share data	Fiscal 2018	Fiscal 2017
		Net Sales	108203	100904			Assets
		Cost of Sales	71043	66548			Current assets:
		Gross Profit	37160	34356			Cash & cash equivalents	1778	3595
		Operating Expenses:					Receivables, net	1936	1952
		Selling, general & administrative expenses	19513	17864			Merchandise inventories	13925	12748
		Depreciation & amortization	1870	1811			Other current assets	890	638
		Impairment loss	247	0			Total current assets	18529	18933
		Total operating expenses	21630	19675			Net property and equipment	22375	22075
		Operating Income	15530	14681			Goodwill	2252	2275
		Interest and other (income) expense:					Other assets	847	1246
		Interest and investment income	-93	-74			Total assets	44003	44529
		Interest expenses	1051	1057
		Other	16	0			Liabilities & Stockholders' Equity
		Interest and other, net	974	983			Current Liabilities:
		Earnings before provision for income taxes	14556	13698	Tax Rate		Short-term debt	1339	1559
		Provision for income taxes	3435	5068	24%		Accounts payable	7755	7244
		Net earnings	11121	8630			Accrued salaries and related expenses	1506	1640
		Basic weighted average common shares	1137	1178			Sales taxes payable	656	520
		Basic earnings per share	9.78	7.33			Deferred revenue	1782	1805
		Cash Dividend	4212	4704			Income taxes payable	11	54
		Diluted weighted average common shares	1143	1184			Current installments of long-term debt	1056	1202
		Diluted earnings per share	9.73	7.29			Other accrued expenses	2611	2170
							Total current liabilities	16716	16194
		RATIO ANALYSIS	2018	2017			Long-term debt, excluding current installments	26807	24267
		Liquidity Ratio:					Deferred income taxes	491	440
	1	Current Ratio = Current Assets/ Current Liabilities	1.11	1.17			Other long-term liabilities	1867	2174
	2	Quick Ratio = (Cash + Temp. Investments + Receivables)/ Current Liabilities	0.22	0.34			Total liabilities	45881	43075
		Asset Turnover Ratio:					Common stock, par value $0.05; authorised: 10000 shares; issued: 1782 at Feb 3, 2019 and 1780 shares at Jan 28, 2018; outstanding: 1105 shares at February 3, 2019 and 1158 shares at Jan 28, 2018	89	89
	3	Receivable Turnover = Annual Credit Sales/ Average Accounts Receivables	14	12			Paid-in-capital	10578	10192
	4	Inventory Turnover Ratio = COGS/ Average Inventory	1.3	1.2			Retained earnings	46423	39935
							Accumulated other comprehensive loss	-772	-566
		Financial Leverage Ratio:					Treasury stock, at cost, 677 shares at Feb 3, 2019 & 622 shares at Jan 28, 2018	-58196	-48196
	5	Debt Equity Ratio = Total Liabilities/ Total Shareholders Equity	-24.43	29.63			Total stockholder's (deficit) equity	-1878	1454
							Total liabilities and stockholders' equity	44003	44529
		Profitability Ratio:

Public Company Summary Prompt This assignment is designed to help you relate what you lean in class to real world organizations. Please follow the instructions below carefully. Be sure to show your...

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