Financial Analysis

. Definitions. Define completely any 10 terms. Give examples

Annuity Percentage points Debt
Finance Convertible security Bond
Deficit Equity Loanable Funds
Debenture Primary Market Future value
Return Amortization
Present Value Zero coupon bond
Municipal Secondary market

II. Financial Analysis

Using the publicly traded company that you have been reviewing, address the following:

1. Give a profile of the company. What is its dominant source of revenue ?
Compare the following to the industry average or to a comparable
competitor:
total sales (latest year)
total assets (end of last fiscal year)
Market capitalization

2. Review the income statement over the last three fiscal years.
What has changed ?
To what can you attest the change ?

3. Review the Balance sheet over the last two years (end of fiscal year).
What has notably changed ?
Review the cash flow statement, and explain the change in the
cash account.

[ CONTINUED ]

4. Using fundamental analysis, review the crucial ratios in the following categories:
Liquidity
Asset management
Debt
Interest coverage
Profitability.

What do you anticipate will be the outcome for the company by the end of the current fiscal year ? Do you forecast improvement or loss ?

NOTES:

1. Be sure to include at least a summary of the pertinent financial statements as back-up to your analysis. These should include the Income Statements, Balance Sheets, and Statement of Cash Flow.

2. Show your ratio calculations. In other words: set up the ratios correctly. Be aware of annualizing income statement items where necessary.

3. In your ratio analysis (fundamental analysis): include comparisons for
ratio. The comparison may come from a competitor, the industry
average, or from different time periods for the same company.