FTM Final Project FINANCIAL ANALYSIS TASK: For your final project, you need to:

1. Calculate ratios using the balance sheet of the company that you have selected
(please see details given below).

2. You are also required to describe what each of the ratios mean (in terms of the
value that you have calculated for that company, e.g. if you have obtained a high value for Inventory Turnover, what does that mean? & how does that reflect on the financial situation of the company, what Information can be obtained about the company from the calculated value? etc) Some of the Ratios that you are required to calculate are mentioned below, you can also add in more ratios if you like, extra effort will be rewarded. Important: You are required to submit 3 hardcopies of your final project and 1 soft copy (CD), preferably in the last class before final exam. I will also accept projects submitted on the day of the exam, but no later. There will be no one to accept your project if you submit it after the exam, and you will lose 20% of your grade! This final project is an individual effort and no two students are allowed to work on the same company. Ratios LIQUIDITY Days' Sales in Receivables Accounts Receivable Turnover A/R Turnover in Days Days' Sales in Inventory Inventory Turnover Inventory Turnover in Days Documentation Gross Receivables Net Sales / 365 Net Sales Average (Gross Receivables) 365 Accounts Receivable Turnover Ending Inventory Cost of Goods Sold / 365 Cost of Goods Sold Average (Inventories) 365

Inventory Turnover Operating Cycle Working Capital Current Ratio Acid Test Cash Ratio Sales to Working Capital Cash Flow/Cur. Mat. of Debt & NP A/R Turnover in Days + Inventory Turnover in Days Total Current Assets - Total Current Liabilities Total Current Assets Total Current Liabilities Cash + Marketable Securities + Net Trade Receivables Total Current Liabilities Cash + Marketable Securities Total Current Liabilities Net Sales Average (Working Capital) Cash Flow from Operations Short Term Loans + Current Maturity of L.t. Debt LONG-TERM DEBT-PAYING ABILITY Times Interest Earned Fixed Charge Coverage Income before Taxes + Interest Expense (no capitalized interest) - Equity in Earnings of Assoc.; Profit (Loss) Income before Taxes + Interest Expense (no capitalized interest) - Equity in Earnings of Assoc.; Profit (Loss) + Interest Portion of Rentals Total Liabilities Total Assets Total Liabilities Total Equity Total Liabilities Total Equity - Intangible Assets Cash Flow from Operations Total Liabilities PROFITABILITY Net Profit Margin Total Asset Turnover Return on Assets N.I. before Min. Ern. Equity in Earnings of Assoc.; Profit (Loss) Net Sales Net Sales Average (Total Assets) N.I. before Min. Ern.

Debt Ratio

Debt / Equity

Debt to Tangible Net Worth Cash Flow/Total Debt

Average (Total Assets) Operating Income Margin Operating Income Net Sales Net Sales Average (Total Assets - Construction in Progress - Intangible Assets Investments - O Operating Income Average (Total Assets - Construction in Progress - Intangible Assets Investme Net Sales Average (Net Tangible (Fixed) Assets (other than construction in progress)) N.I. before Min. Ern. + {(1- Tax Rate) * Interest Expense (no capitalized interest)} Average (Total Liabilities and Equity - Total Current Liabilities) N.I. before Nonrecurring Items - Dividends on Redeemable Pref. Average (Total Equity) Gross Profit / Net Sales N.I. before Nonrecurring Items - Dividends on Redeemable Pref. - Dividends on No redeemable Pref. Average (Common INVESTOR ANALYSIS Degree of Financial Leverage Earnings per Share Price/Earnings Ratio Percentage of Earnings Retained Dividend Payout Dividend Yield Income before Taxes + Interest Expense (no capitalized interest) - Equity in Earnings of Assoc.; Profit (Loss) Dil. Earn. per Sh. before Nonrec. Items Market Price per Common Share Dil. Earn. per Sh. before Nonrec. Items N.I. before Nonrecurring Items - Total Cash Dividends N.I. before Nonrecurring Items Dividends per Common Share Dil. Earn. per Sh. before Nonrec. Items Dividends per Common Share Market Price per Common Share

Operating Asset Turnover

Return on Operating Assets

Sales to Fixed Assets

Return on Investment

Return on Total Equity Gross Profit Margin Return on Common Equity

Book Value per Share Materiality of Options Oper. Cash Flow/Cash Dividends Year-end Market Price Oper. Cash Flow per Share

Common Equity-incl. Ret. Ern. Common Shares Outstanding

Net income not including opt. exp. - Net income including opt. exp. Net income not including opt. exp.

Cash Flow from Operations Total Cash Dividends Market Price per Common Share Cash Flow from Operations - Dividends on Redeemable Pref. - Dividends on No redeemable Pref. Diluted Weighted Average C