Signature Assignment: A
Financial Statement Analysis - A Comparative Analysis of Apple, Inc. and
Microsoft, Inc.
Description
This course contains a
Course Project, where you will be required to submit one draft of the project
at the end of Week 6, and the final completed project at the end of Week 8.
Using the financial statements for Apple Inc. and Microsoft, Inc., respectively,
you will calculate and compare the financial ratios listed further down this
document and prepare your comments about the two companies' performances based
on your ratio calculations. The entire project will be graded by the instructor
at the end of the final submission in Week 8, and one grade will be assigned
for the entire project.
Financial Statement
Below is the link for the
financial statements for Apple Inc. for the fiscal year ending 2021.
https://investor.apple.com/investor-relations/default.aspx
When you arrive at this
website, please do the following.
First, select SEC
Filings, next select Annual Filings using the drop-down arrow labeled All
Filings and then select 2021, using the drop-down arrow labeled Year,
You should select the
10-K dated 10/29/2021 and choose to download in PDF, HTML, or Excel format. The
PDF format is the best format for searching.
Below is the link for the
financial statements for Microsoft, Inc. for the fiscal year ending 2021.
https://www.microsoft.com/en-us/Investor/sec-filings.aspx
Once on the page, filter
out the "Annual Filings" and "2021" year, which will bring
up the link to the 10-K report. Click on Documents for the 10-K dated
07/29/2021. Finally, click on the .pdf link next to the Form 10-K. This will
open the 10-K in HTML format which is searchable.
Overall Requirement
For the Final Submission:
Your final Excel workbook
submission should contain the following. You cannot use any other software but
Excel to complete this project.
1.
A Completed Worksheet Title Page tab, which is really a
cover sheet with the names of each team member, the course, the date, your
instructor's name, and the title for the project.
2.
A Completed Worksheet Profiles tab which contains a
one-paragraph description regarding each company with information about their
history, what products they sell, where they are located, and so forth.
3.
All 16 ratios for each company with the supporting calculations
and commentary on your Worksheet Ratio tab. Supporting calculations must be
shown either as a formula or as text typed into a different cell. The ratios
are listed further down this document. Your comments for each ratio should
include more than just a definition of the ratio. You should focus on
interpreting each ratio number for each company and support your comments with
the numbers found in the ratios. You need to specifically state which company
performed better for each ratio.
4.
The Summary and Conclusions Worksheet tab is an overall
comparison of how each company compares in terms of the major category of
ratios described in Chapter 13 of your textbook. A nice way to conclude is to
state which company you think is the better investment and why.
5.
The Bibliography Worksheet tab must contain at least your
textbook as a reference. Any other information that you use to profile the
companies should also be cited as a reference as well as the links to the
financial statements.
Required Ratios for Final
Project Submission
1.
Earnings per Share of Common Stock
2.
Current Ratio
3.
Gross Profit Rate
4.
Profit Margin
5.
Inventory Turnover
6.
Days in Inventory
7.
Accounts Receivable Turnover
8.
Average Collection Period
9.
Asset Turnover
10. Return
on Assets (ROA)
11. Debt to
assets Ratio
12. Times
Interest Earned Ratio
13. Dividend
Yield[For the purposes of this ratio, use obtain the dividend per
share information from each company's statement of stockholders' equity. Obtain
the stock prices for each company from Yahoo Finance. Use the closing price as
of 9/24/21 for Apple, and 06/30/21 for Microsoft. ]
14. Return
on Common Stockholders' Equity (ROE)
15. Free
cash flow
16. Price-Earnings
Ratio(Obtain the stock prices for each company from Yahoo Finance. Use
the closing price as of 9/24/21 for Apple, and 06/30/21 for Microsoft.)
Note: The Excel files
uploaded as the assignment submission should not include any unnecessary
numbers or information (such as previous years' ratios, ratios that were not
specifically asked for in the project, etc.).