Financial Analysis
Financial Analysis

In this assignment, you are asked to analyze an annual financial report (called a 10K for a U.S. public company), which might be one of the following:

  • Publicly traded company (e.g., Pearson Annual Report) [Recommended database is company website; or Edgar: https://www.sec.gov/edgar.shtml
  • Charter school company [via Google search]
  • Non-profit organization Recommended database is GuideStar: https://www.guidestar.org/

 Identify and discuss the following in a 3-page paper:

Part A: The Income Statement

  • What it the name of the organization and source (URL) for the annual report?
  • What are the major sources of income for the organization?
  • What is the breakdown of each source of revenue as a percentage of total income?
  • What are the costs?

Part B: The Balance Sheet

  • How much does the company have in cash and short-term investments?
  • Look at the cash against current liabilities? What are the current liabilities? Does the company have enough cash to pay off its short-term debt (current liabilities)?
  • What is the companys working capital? (Hint: you have to calculate this. Refer back to Module 1 Learning Object for help.)
  • What is the companys current ratio? What does this mean?
  • What is the companys debt-to-equity ratio? What does this mean?
**Please include an introduction and concluding paragraph 

Here are the articles that were assigned this week for the assignement:

https://www.thebalance.com/annual-reports-10k-10q-357266

https://www.thebalance.com/investing-lesson-4-income-statement-analysis-357580

https://www.thebalance.com/investing-lesson-3-analyzing-a-balance-sheet-357264

https://www.thebalance.com/what-is-a-10-k-and-why-should-an-investor-read-it-357303

https://www.cnbc.com/2014/01/27/how-to-read-a-10-k-like-warren-buffet.html

 

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