“Company Filings”

Choose a company (small, medium or large sized) whose financials you would like to analyze (i.e. Facebook, Mcdonalds, CocaCola, etc…)

Go the SEC website http://www.sec.gov/edgar/searchedgar/companysearch.html

1.     Click on “Company Filings”, then click on “Company or fund name, ticker symbol, CIK ….”

2.     Enter the company name and click Search.

3.     Once you get the list of forms filed for the company, type “10-K” in the Form Type box. Now, only Form 10-Ks filed will appear. Review the company’s most recently filed 10-K.

A. Read and analyze the company’s financial statements and all related notes and supplemental disclosures. (You will need to include a pdf copy of the entire report with your analysis)

B. Type a 3 – 5-page report on the company based on your financial analysis.

Your paper should start with a brief description of the company and should address issues like:

How well is the company doing as an investment?

How well has management employed the company’s assets?

Are profits high enough, given the level of sales?

How well are the company’s assets being employed to generate sales revenue?

Are receivables coming in too slowly?

Is too much cash tied up in inventories?

Does this customer have sufficient cash or other liquid assets to cover its short-term obligations?

How quickly does the prospective credit customer pay its bills?

As a potential or present long-term borrower, is the company’s debt load excessive?

Are earnings and cash flow sufficient to cover interest payments and provide for some principal repayment?

Identify three situations in your company that demonstrate strengths or weaknesses in the management of the affairs of the company. Elaborate what kinds of analyses you used in order to identify these strengths or weaknesses and the manner in which they can be addressed or improved (in case of weaknesses) or maintained (in case of strengths)

Review the cash flow statements of the company and correlate it to the financial statements to identify if the company is in a sound financial position and whether their cash management strategy is adequate.

Your analysis should end with an explanation on whether or not you would invest in this company as a stockholder and list your reasons why.

Leave a Reply

Your email address will not be published. Required fields are marked *