Ac 310 Fall 2020 Ac 310 Chevron Corporation Repor

Ac 310 Fall 2020 Ac 310 Chevron Corporation Repor

Ac 310 Fall 2020 Ac 310 Chevron Corporation Repor

AC 310 Fall 2020 Assignment 2

Please choose a public company that is NOT Tesla, Square, or EA to analyze. If you happen to choose the same company as a classmate, do not complete this assignment together (I will check for overlap).

You will submit a short report using the instructions from sections 1 and 2 below. The report should be 2 pages or less of text (i.e., not including tables/figures). I will award extra credit to those who do an excellent job and appropriately integrate our class material and discussions into their report.

Section I – Presentation & Earnings

Access the most recent annual financial statements (i.e., 10-k) for your company from the SEC’s website. Write 1-2 pages of text discussing some or all of the following items using your own words and integrating what you have learned this semester in class. You may:

  • Discuss the presentation of the company’s income statement, statement of comprehensive income, balance sheet, and statement of cash flows. For example, single-step/multi-step I/S, items in OCI, direct/indirect SOCF.
  • Discuss any unusual items that you notice. For example, did the company have any changes in accounting principles (e.g., inventory) or restatements (hint: see footnotes)? How about other unusual items (e.g., discontinued operations)?
  • Did the company report non-GAAP earnings? How are they different from GAAP earnings? Talk about the earnings quality. Did all the items used to calculate EPS appear to be permanent earnings? Did you see any signs of Earnings Management?
  • Did the company meet/beat analysts’ forecasts this year (hint: search the company on YahooFinance.com or GoogleFinance.com to see analyst forecasts)? What happened to the company’s stock price on the announcement date? Why?

Section II – Ratio Analysis

This portion should be completed in Excel and copied into the Word document used for Section I

  • For the most recent 10-K, compute each of the ratios listed below for your company and at least one direct competitor.
  • Discuss the comparison of ratios to its competitor (from 2). Discuss the implications of this analysis on future return/risk. Based on the information you learned from this assignment, would you buy the company’s stock?

Asset Turnover Ratio,Receivables Turnover Ratio (in days),Inventory Turnover Ratio (in days),Profit Margin,ROE,ROA,Equity Multiplier,Working Capital,Current Ratio,Acid-test (Quick) Ratio,Debt to Equity Ratio