Posted: March 7th, 2023
Assignment:
Search Yahoo Finance and/or any other credible source(s) to find the most recent income statement and balance sheet of a major corporation, then perform a vertical financial analysis incorporating:
a. Debt ratio
b. Debt to equity ratio
c. Return on assets
d. Return on equity
e. Current ratio
f. Quick ratio
g. Inventory turnover
h. Days in inventory
i. Accounts receivable turnover
j. Accounts receivable cycle (in number of days)
k. Accounts payable turnover
l. Accounts payable cycle (in number of days)
m. Earnings per share (EPS)
n. Price to earnings ratio (P/E)
o. Cash conversion cycle (CCC)
p. Working capital
q. Explain Dupont identity. Apply it to your selected company. Interpret the components in Dupont identity.
Provide detailed and precise explanations and definitions. Be sure to submit the financial statements along with the vertical financial analysis.
Resources you can use:
The Duomo Initiative. (2020, May 28). How to read company financial statements (basics explained) [Video]. YouTube.
Rubric:
Criteria |
Performance Indicators (Observation descriptors indicating extent to which criterion is met.) |
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Exemplary 10・9 |
Proficient 8・7・6 |
Needs Improvement 5・4 |
Unsatisfactory 3・2・1 |
No Submission | |
Depth
40% of overall grade |
All components of the assignment are:
· Well described · Variables are defined and explained · Underlying assumptions are identified
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All components of the assignment are:
· Well described · Variables are defined and explained · Underlying assumptions are not well explained
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All components of the assignment are:
· Well described · Variables are not fully defined and explained · Underlying assumptions are not well explained
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All components of the assignment are:
· Not well described · Variables are not fully defined and explained · Underlying assumptions are not well explained
|
0 points |
Organization
20% of overall grade |
The activity is well organized and has a logical flow.
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The activity is fairly organized and mostly follows a logical flow.
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The paper has some organization and logical flow issues.
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The paper has unsatisfactory organization and no logical flow. | 0 points |
Grammar and Spelling
20% of overall grade |
Paper is free of distracting spelling, punctuation, and grammatical errors.
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Paper has few spelling, punctuation, and grammatical errors allowing the reader to follow ideas clearly.
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Most spelling, punctuation, and grammar are correct, which allows the reader to progress through the paper. Some errors remain. | Spelling, punctuation, and grammatical errors create distraction, making reading difficult. Errors are frequent. | 0 points |
Formatting
20% of overall grade |
Paper meets all formal and assignment requirements and evidences attention to detail; all margins, spacing and indentations are correct. Paper is neat and correctly assembled with a professional look. | The paper follows most formatting guidelines, including page-length and APA formatting requirements.Paper is neat and correctly assembled.
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Paper generally follows formatting guidelines and assignment requirements, including page-length and APA formatting requirements. Paper is neat but may have some assembly errors
SOLUTION To perform a vertical financial analysis, I searched for the most recent income statement and balance sheet of Apple Inc. on Yahoo Finance. The income statement and balance sheet were for the fiscal year ended September 25, 2021. Here is the vertical financial analysis of Apple Inc. incorporating the following financial ratios: a. Debt ratio: Debt ratio = Total liabilities / Total assets |
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