Introduce the company you are analyzing, the years you are analyzing and where the data came from. The data you are using came from IBMs 10-k filing with the Securities and Exchange Commission.
Then, set the stage for what you will be writing about: Analyzing certain ratios of the company to determine if activity is improving, or not. Make sure to mention the sections for your paper in the introduction.
How the Company Makes Money
This is a comprehensive article that discusses how IBM makes money.
https://www.investopedia.com/how-ibm-makes-money-4798528 (Links to an external site.)
In this section, find information about IBM and how the company makes money. While it seems simple to state that IBM makes computers, they do a lot more than that.
Revenue Recognition – Elaborate and explain this topic.
Ratio Analysis
This section should introduce the ratios you will be writing about: Profitability, Solvency, and Liquidity ratios.
Profitability Ratios (This should be a second level heading)
Describe what profitability ratios tell you about a company.
Explain the Gross Profit Percentage and the Net Profit Percentage and then discuss the results of the profitability ratios of IBM and what this tells us about IBM. (you can include screen shots from your Excel file)
Solvency Ratio (This should be a second level heading)
Describe what the solvency ratio tells you about a company.
Explain the Debt to Assets ratio and then discuss the results of the solvency ratio of IBM and what this tells us about IBM. (you can include screen shots from your Excel file)
Liquidity Ratios (This should be a second level heading)
Describe what liquidity ratios tell you about a company.
Explain the Current and Quick ratio and then discuss the results of the liquidity ratio of IBM and what this tells us about IBM. (you can include screen shots from your Excel file)
Working Capital Management
This section should describe/define what working capital management is.
Define how efficiency ratios can help determine if a company is moving its funds in an effective way.
Efficiency Ratios (This should be a second level heading)
Describe/define what efficiency ratios tell you about a company
Results for IBM and what they mean (you can include screen shots from your Excel file)
Inventory Turnover
Explain what inventory turnover is and then discuss the results of these ratios for IBM.
Days in Inventory
Explain what days in inventory is and then discuss the results of these ratios for IBM.
Accounts Receivable Turnover
Explain what accounts receivables turnover is and then discuss the results of these ratios for IBM.
Days Sales in Receivables
Explain what days sales in receivables is and then discuss the results of these ratios for IBM.
Accounts Payable Turnover
Explain what accounts payables turnover is and then discuss the results of these ratios for IBM.
Payable Turnover in Days
Explain what payables turnover in days is and then discuss the results of these ratios for IBM.
Cash Conversion Cycle (This should be a second level heading)
Describe what the cash conversion cycle is and what it tells you about a company and then discuss the results for IBM.
Horizontal and Vertical Analysis
Explain what a horizontal and vertical analysis tells you about a company and then discuss the results for IBM.
This should be a new level 1 heading and describe what these analyses can tell you about a company
Results for IBM and what they mean (you can include screen shots from your Excel file)
Free Cash Flow
Explain what free cash flow is and what it tells you about a company and then discuss the results for IBM.
This should be a new level 1 heading and describe what free cash flow tells you about a company
