Balance Sheet Analysis

introduction: In this section, introduce the company you have selected and include basic background information about the history, position in the industry, size and type of company, locations, and products.
Income Statement Analysis: In this section, answer the following for the trend analysis: What is the total revenue, total costs of revenue and net income for each year? How have these numbers changed over the three years and what could be some reasons why these numbers have changed the way they have? In addition, pick at least one appropriate (for this statement) ratio or financial in addition to what is provided and calculate that and explain it. See the section on ratio analysis below for ideas.
Balance Sheet Analysis: In this section, answer the following for the trend analysis: What are the total assets, liabilities and shareholder equity for each year? How have these numbers changed over the three years and what could be some reasons why these numbers have changed the way they have? In addition, pick at least one appropriate (for this statement) ratio or financial in addition to what is provided and calculate that and explain it. See the section on ratio analysis below for ideas.
Cash Flow Analysis: In this section, answer the following for the trend analysis: What are the total cash flows from operating, investing and financing activities as well as the change in cash and cash equivalents for each year? How have these numbers changed over the three years and what could be some reasons why these numbers have changed the way they have? In addition, pick at least one appropriate (for this statement) ratio or financial in addition to what is provided and calculate that and explain it. See the section on ratio analysis below for ideas.
Ratio Analysis: In this section complete and analyze the ratios below. Discuss what they’re saying about the companies performance.
Beta: A measure of risk that is usually published and not calculated by you (A beta greater than 1 suggests that the company is more volatile/risky than the market)
Current ratio = Current Assets/Current Liabilities (A current ratio greater than 1 means the company has enough assets to cover all current liabilities should the need arise)
Quick ratio = (Current Assets – Inventory)/Current Liabilities (When you are dealing with a company that carries a lot of inventory, a quick ratio is a better indicator than a current ratio because it acknowledges that inventory is not typically liquid).
Total Asset Turnover = Net sales/Total Assets (Total asset turnover measures the dollar amount of sales generated with each dollar of total assets. Generally, the higher the total asset turnover, the more efficient management is using total assets.
Profit Margin = Net Income/Sales (Represents how much of each dollar in sales remains after all costs are covered)
Return on Equity = Net income/Total equity (Represents the return for all holders of equity in that company)
EBIT Return on Assets = EBIT/Total assets (Represents the pre-tax return on the total net investment in the firm from operations or alternatively, how efficiently management has used assets)
Debt-equity ratio = Total debt/Total equity (Represents the long term solvency or financial leverage in that company)
Conclusion: In this section, answer the following: What are the most important things you have discovered in your analysis? What are some conclusions you reached? What are the highlights of your paper?