Short term solvency:
i. Provide a brief definition of every ratio within the category
ii. Include graph for your firm that shows the trend analysis and another
graph that shows the competitors trend for the past 3 years.
iii. Discuss your ratios’ trend relative to the competitor’s three-year trend and
explain why they are similar or different.
iv. Discuss your firm’s ratios relative to the industry in the most recent year.
(i.e. are they higher or lower than the industry and what this means for
your firm). You only need to include industry ratios for current and quick
ratio.
b. Long term solvency:
i. Provide a brief definition of every ratio within the category
ii. Include graph for your firm that shows the trend analysis and another
graph that shows the competitors trend for the past 3 years.
iii. Discuss your ratios’ trend relative to the competitor’s three-year trend and
explain why they are similar or different.
iv. Discuss your firm’s ratios relative to the industry in the most recent year.
(i.e. are they higher or lower than the industry and what this means for
your firm). You only need to include industry ratios for D/E and times
interest earned ratio.
c. Asset Management:
i. Provide a brief definition of every ratio within the category
ii. Include graph for your firm that shows the trend analysis and another
graph that shows the competitors trend for the past 3 years.
iii. Discuss your ratios’ trend relative to the competitor’s three-year trend and
explain why they are similar or different.
iv. Discuss your firm’s ratios relative to the industry in the most recent year.
(i.e. are they higher or lower than the industry and what this means for
your firm). You need to include industry ratios for all the ratios in this
category. You can find the industry ratios on gurufocus.
d. Profitability:
i. Provide a brief definition of every ratio within the category
ii. Include graph for your firm that shows the trend analysis and another
graph that shows the competitors trend for the past 3 years.
iii. Discuss your ratios’ trend relative to the competitor’s three-year trend and
explain why they are similar or different.
iv. Discuss your firm’s ratios relative to the industry in the most recent year.
(i.e. are they higher or lower than the industry and what this means for
your firm). You should include the include industry ratios for PM and
ROA.
e. Market valuation:
i. Provide a brief definition of every ratio within the category
ii. Include graph for your firm that shows the trend analysis and another
graph that shows the competitors trend for the past 3 years.
iii. Discuss your ratios’ trend relative to the competitor’s three-year trend and
explain why they are similar or different.
iv. Discuss your firm’s ratios relative to the industry in the most recent year.
(i.e. are they higher or lower than the industry and what this means for
your firm). You only need to include industry ratios for P/E, P/S, and PEG
7. DuPont analysis: explain the purpose to DuPont analysis
i. Discuss the three components of DuPont
ii. Include graph for your firm that shows the ROE trend analysis and another
graph that shows the competitors trend for the past 3 years.
iii. Discuss the weaknesses and strengths of your firm’s ROE relative to the
competitor firm over the past three years. Discuss the driving force behind
the movements in ROE (i.e. did the ROE change due to Total asset
turnover, profit margin, equity multiplier or a combination of the
variables? Is the increase/decrease in ROE and good indication for the
future of the firm and why?)
iv. Discuss the weaknesses and strengths of your firm’s ROE relative to the
industry in the most recent year
8. Provide a summary of how your company is doing relative to the competitor and to the
industry in the five major categories (Short-term solvency, long-term solvency, asset
management, profitability, and market valuation
