Assignment Question
The purpose of the annual report project is to familiarize you with a publicly traded company, its 10-K, and the process of evaluating its performance for the purpose of determining whether the purchase of company stock would be a good investment.
The following details apply: As a primary source of information you will use the publicly available 10-K filings for the company of your choice. Sometimes these filings are available on the company website, but all the filings are also made available to the US Securities and Exchange Commission (SEC). This is a link to that agency’s website (Links to an external site.) which allows you to search and locate the filings of any US public company. The complete url is listed below in the Resources section if needed. The report can include visuals (e.g. graphs, charts, etc.) to help you illustrate your arguments and conclusion. You can structure your presentation in any way you decide makes your case the strongest, as long as it includes your analysis and conclusion.
A potential guide follows:
Introduction – Briefly introduce the company you are analyzing. Include what the company does and why it interests you. Body – Your analysis of the company using financial statement analysis ratios. You do not have to include every ratio discussed this semester, but select those that support your conclusion about the company. This should be the bulk of your report. Specifically how many ratios are adequate is up to you. For instance a detailed analysis of three or four ratios might make your case better than a less detailed analysis of five or six ratios (the opposite may also be true). We do not want to present a simple list of data. Instead, we want to use the data to present an interpretation of the company’s financial position.
Conclusion – State directly whether you believe this company is a good investment. Concern yourself less with being “right” or “wrong.” Instead, endeavor to support your conclusion with your analysis and arguments. Resources SEC Website: https://www.sec.gov/edgar/searchedgar/companysearch.html In addition to your book, you may find these resources helpful: Financial Statement Ratio Definitions Basic Financial Statement Ratio Discussion Also, as always, you can ask me! Send me an email with specific questions or come to office hours. Grading Rubric – 22 points 5 points – Clearly stated conclusion. 5 points – The interpretations of the ratios present support the stated conclusion. 5 points – The ratio discussion demonstrates an understanding of the ratio itself. 5 points – The ratio discussion demonstrates an understanding of what the ratio suggests about the company’s financial position. 2 points – Timely submitted.
