FIN 6060 MODULE 1[1]
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FIN 6060: Financial Decision Making
Module 1 - Company Analysis Worksheet
Module 1: Company Analysis
Akinlade Temitope Damilola
Nexford University
FIN 6060: Financial Decision Making
Dr.
Keith Wade
January 2024
FIN 6060: Financial Decision Making
Module 1 - Company Analysis Worksheet
Company Analysis
Directions:
Obtain end-of-year financial statements (balance sheets and income statements) for the previous three years from Amazon
and Walmart
. Conduct a ratio, horizontal, and vertical analysis for each company. Then answer the following questions.
INCOME STATEMENT FOR AMAZON INC
Vertical analysis
Horizontal analysis
2021
2022
2021
2022
Value change
%
Change
Total net sales 469,822
513983
100.00%
100%
44,161
9%
Cost of Sales
272,344
288831
57.97%
56%
16,487
6%
Total operating expenses
444,943
501735
94.70%
98%
56,792
13%
Net income (loss)
33364
2722
7.10%
1%
-30,642
-92%
Basic earnings per share
3.3
0
0.00%
0%
-3
-92%
Diluted earnings per share 3.24
0
0.00%
0%
-3
-92%
Weighted-average shares used in the computation of earnings per share
Basic
10,117
10189
2.15%
2%
72
1%
Diluted
10,296
10189
2.19%
2%
-107
-1%
BANLANCE SHEET FOR AMAZON INC
2021
2022
Vertical analysis
Horizontal analysis
ASSETS
2021
2022
Value change
%change
Current assets:
Current Cash and cash equivalents
36,220
53888
100%
100%
17,668
49%
FIN 6060: Financial Decision Making
Module 1 - Company Analysis Worksheet
Marketable securities
59,829
16138
165%
30%
-43,691
-121%
Inventories
32,640
34405
90%
64%
1,765
5%
Accounts receivable, net, and Other
32.891
42360
0%
79%
42,327
117%
Total current assets
161,580
146791
446%
272%
-14,789
-41%
Property and equipment, net
160,281
186715
443%
346%
26,434
73%
Operating leases
56,082
66123
155%
123%
10,041
28%
Goodwill
15,371
20288
42%
38%
4,917
14%
Other assets
27,235
42758
75%
79%
15,523
43%
Total assets
420,549
462675
1161%
859%
42,126
116%
LIABILITY AND STAKEHOLDERS’ EQUITY
Current liabilities:
Accounts payable
78,664
79.6
217%
0%
-78,584
-100%
Accrued expenses and other
51,775
62566
143%
116%
10,791
14%
Unearned
11,827
13227
33%
25%
1,400
2%
Total current liabilities
142,266
155393
393%
288%
13,127
17%
Long-term lease liabilities
67,651
72968
187%
135%
5,317
7%
Long-term debt
48,744
67150
135%
125%
18,406
23%
Other long-term liabilities
23,643
21121
65%
39%
-2,522
-3%
Stockholders' equity:
Common stock 106
108
0%
0%
2
2%
Treasury stock, at cost
-1,837
-7837
-5%
-15%
-6,000
-5660%
Additional paid-in capital
55.437
75066
0%
139%
75,011
70765%
Accumulated other comprehensive income (loss)
-1,376
-4487
-4%
-8%
-3,111
-2935%
Retained earnings
85,915
83193
237%
154%
-2,722
-2568%
Total stockholders' equity
138,245
146043
382%
271%
7,798
7357%
Total liabilities and stockholders' equity
420549
462675
1161%
859%
42,126
39742%
Ratio Analysis of Amazon 2021 2022
FIN 6060: Financial Decision Making
Module 1 - Company Analysis Worksheet
Current Ratio: 1 1
Quick Ratio: 1 1 Debt to equity Ratio 0.35 0.45
Debt to asset ratio 0.1 0.1 INCOME STATEMENT OF WALMART INC
2022
2021
Vertical analysis
Horizontal analysis
Revenues:
2022
2021
value change
%change
Net sales
567762
555233
100%
100%
12529
2%
Membership and Other income
4992
3918
1%
1%
1074
27%
Total revenues 572754
559151
101%
101%
13603
2%
Costs and expenses:
Cost of sales
429000
420315
76%
76%
8685
2%
Operating, selling, general and administrative expenses
117812
116288
21%
21%
1524
1%
Operating income 25942
22548
5%
4%
3394
15%
Interest:
Debt
1674
1976
0%
0%
-302
-15%
Finance lease
320
339
0%
0%
-19
-6%
Interest income
-158
-121
0%
0%
-37
31%
Interest, net
1836
2194
0%
0%
-358
-16%
Loss on extinguishment of debt
2410
0
0%
0%
2410
0%
Other (gains) and losses
3000
-210
1%
0%
3210
-1529%
Income before income taxes
18696
20564
3%
4%
-1868
-9%
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Requirements
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Assignment
1
: Select a company. It is advised to choose the organization
(
if it is listed
)
where you are employed for this assignment. If your organization is not listed you may choose any other listed company from your industry or related industry.
·
Download last
3
years annual report.
·
Compute the financial ratios for last
3
years and see the trend
[
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]
.
You need to do this exercise on an excel file.
·
Provide explanation on the strategic implications of these ratios on your company
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3
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[
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]
.
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•
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istructions
alance sheet for Sandpiper Corporation as of December 31, 2020 using column 2
3 for nets, sub-totals, & totals on the 4-column accounting paper provided online.
e the units, tens, hundreds, thousands, etc. in the proper mini column, and leave
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f the column and after a total line.
o present the following ratios to the nearest tenth:
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QTR1
QTR2
QTR3
QTR4
2018
Sales
290000
320000
320000
490000
1,420,000
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102500
175000
180000
54000
511,500
Investment Income
13000
9500
10000
20000
52,500
Other
16000
25000
19500
29000
89,500
Total
421,500
529,500
529,500
593,000
2,073,500
Thom-Pierre Consultants (TPC)
COMPARITIVE INCOME STATEMENT
for years ended 31 December
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2019
Revenues and gains
*Sales revenue
*Interest revenue
*Investment Income
*Other revenue
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