International Financial Statement Analysis Workbook

April Cruz, Litesha Forbes, Phillip Gibson, Jessica Hewlett, Lily James, Velda Justin, and Nzingha Reel

In the United States, a society plagued by capitalism, investing has become a way of life. To most Americans it begins with opening a savings account and slowly allowing that money to grow through the compounded interest rate over the years. While it may not seem like a big step in generating more income, nonetheless, this is a positive movement in the market of investments. With the many types of investments available knowing which are reliable, or safe, or yield good returns, are just some of the questions on the investors mind. Within each asset class there are investments to suit different kinds of risk, duration, returns and liquidity.

It is easy to forget that pouring money into a problem will not fix it unless revenue flows continue or are increased and expenses are controlled. Some of the easiest computations can be made with information retrieved from balance sheets and income statements provided by accountants. Ratios such as the current ratio, long-term solvency ratio, contribution ratio, programs and expense ratio, general and management expense ratio, fund-raising and expense ratio, and revenue and expense ratio can provide a picture of where a company stands now compared to where it was in past years and what may need to be done in the future.

This paper describes a financial statement analysis project useful in both preparerbased and user-based introductory courses in financial accounting. The project

Imagine that you are a financial manager researching investments for your client that align with its investment goals. Use the Internet or the Strayer Library to research any U.S. publicly traded company that you may consider as an investment

Many people don’t understand the process of investing; some people think you would have to work on Wall Street in order to understand the investing process. Even though the investing world has become more confusing than ever, Joe Mansueto saw an easier way of investing. Mr. Mansueto created an organization called Morning Inc. that would demonstrate an easier way of investing. Mansueto created a format that would cut around all unessassary information and aim directly for the relevant information. The company that Joe Mansueto established main focus is to research independent information for investments, financial advisor, and intuitional advisor (Ferrell, 2009). Morningstar’s mutual fund rating service is probably the most influential fund

On JB Hunt’s balance sheet for 2011 lists current assets of $513,542,000 and current liabilities of $438,515,000, yielding a current ratio of 1.17, which indicates the company, has $1.17 of current assets for every $1 of current liabilities. The previous year 2010, the current ratio was 0.91. This shows a 29% increase in the current ratio over the previous year. An organization with a current ratio of 2 or higher is usually viewed by lenders to be a safe risk for short-term credit. Based on the 29% increase in current ratio, JB Hunt is in a better position to obtain

List four basic financial statement analysis procedures, describe how you would calculate each procedure and discuss why you would use each procedure. Based on your reading and outside research, please communicate your own understanding of the requirements. Citations and references are required.

The mission of PMIC is to provide a valuable educational experience to its members by allowing them to manage a real dollar investment portfolio through membership consensus. Through training and hands on experience, members learn about the most important aspects of finance and investing. This experience is facilitated through the group’s monthly

My passion for and insight into the investment industry reflects through my candidacy in the CFA and FRM programs and completion of the Series 65 examination. I possess the curiosity and motivation to be a member of the collaborative team at D.A. Davidson in search of investment opportunities driven by value that will generate exceptional returns for clients. I will take advantage of the opportunity to further speak with you regarding how my qualifications can be of value to D.A. Davidson. Thank you for your time and careful

Landry’s Debt to Asset ratio also increased from year 2002 to 2003. In 2002 Landry had a debt to asset ratio of 0.39. In 2003 Landry’s debt to asset ratio increased to 0.45. While both numbers are acceptable and considerably low, the increase from 2002 to 2003 could influence potential investors to not invest in Landry’s stock. This increase also suggests that Landry’s debt also increased from 2002 to 2003. Overall, while there was a slight increase from 2002 to 2003 Landry’s still had a good debt to asset ratio. We think that a contributing factor to the debt

Fred Weston is Professor of Finance Emeritus Recalled, the Anderson School at the University of California Los Angeles. Thanks to Matthias Kahl, Samuel C. Weaver, Juan Siu, Brian Johnson, and Kelley Coleman for contributions. The paper also benefited from comments at its presentation to the 1999 Financial Management Association Meetings (Orlando).

Brigham, Eugene F., and Joel F. Houston. Fundamentals of Financial Management. Thomson: South-Western Publishers, Eleventh Ed. 2007.

1. Harrison Jr., Walter T.; Horngren, Charles T., Financial Accounting, sixth edition, New Jersey, USA, 2006.

I would like to pay my sincere thanks to, University of Delhi, South Campus for endowing me with the precious insights needed for working out this Project. He has been very instrumental in communicating the core of this project study and thus without his direction, the very inception of this work would not have been possible.