FINANCIAL STATEMENT ANALYSIS
This part is the extended version of Group Project 1. If you have any corrections, please complete them before you start this part. In this part, in addition to presenting your results, you have to analyze the numbers. An appropriate analysis of the company’s financial position and a comparison of this analysis with industry norms and the competitor. A thorough and complete ratio and trend analysis, with supporting calculations and graphs. Your calculations must be shown and you must be able to explain them. To be specific, financial statement analysis will contain the following sections:
a. VERTICAL COMMON-SIZE ANALYSIS
b. HORIZONTAL COMMON-SIZE ANALYSIS
c. FINANCIAL RATIO ANALYSIS
d. COMPARISON OF THE PERFORMANCE
The analysis will contain a comparison of the performance of your company with industry norms and one competitor. This comparison will be, preferably, over the same five years as your analysis. You may access appropriate resources, but you must identify the source of your comparative information. Be sure you are able to understand, explain and substantiate the information in these sources.
NOTES:
•For all of this analysis, appropriate conclusions must be written out and supported by reference to specific ratios and trends
.•Graphs should be included, where appropriate. Line graphs are preferred. Pay attention to the scaling of the graphs. They are not meaningful if scaling is not appropriate.
| Income Statement [Abstract] | ||||||
| Revenue, net | 128.80% | 127.51% | 158.90% | 146.94% | 100.00% | |
| Cost of revenue | 135.53% | 134.08% | 135.39% | 136.22% | 100.00% | |
| Gross profit | 110.07% | 109.23% | 224.31% | 176.77% | 100.00% | |
| Operating expenses: | ||||||
| Research and development | 138.97% | 134.11% | 147.51% | 150.03% | 100.00% | |
| Selling, general and administrative | 115.65% | 132.10% | 147.74% | 144.93% | 100.00% | |
| Employee termination, asset impairment, and other charges | 9.28% | 48.12% | 62.32% | 67.25% | 100.00% | |
| Total operating expenses | 116.07% | 123.44% | 137.69% | 138.70% | 100.00% | |
| Operating income | 71.89% | 18.67% | 776.18% | 419.31% | 100.00% | |
| Interest and other income (expense): | ||||||
| Interest income | 107.69% | 219.23% | 230.77% | 100.00% | 100.00% | |
| Interest expense | 155.26% | 176.32% | 254.14% | 318.42% | 100.00% | |
| Other income (expense), net | -5.48% | -52.05% | 1254.79% | 498.63% | 100.00% | |
| Total interest and other expense, net | 121.73% | 119.49% | 489.46% | 378.59% | 100.00% | |
| Income (loss) before taxes | -30.07% | -187.58% | 1362.75% | 502.61% | 100.00% | |
| Income tax expense | -229.21% | -524.72% | -1584.27% | -417.98% | 100.00% | |
| Net income (loss) | -103.31% | -311.57% | 278.93% | 164.05% | 100.00% | |
| Income (loss) per common share | ||||||
| Basic (in dollars per share) | -83.17% | -255.45% | 224.75% | 136.63% | 100.00% | |
| Diluted (in dollars per share) | -84.00% | -258.00% | 220.00% | 134.00% | 100.00% | |
| Weighted average shares outstanding: | ||||||
| Basic (in shares) | 124.69% | 122.18% | 124.27% | 120.50% | 100.00% | |
| Diluted (in shares) | 123.14% | 120.66% | 126.86% | 122.31% | 100.00% | |
| Cash dividends declared per share (in USD per share) | 75.00% | 100.00% | 100.00% | 100.00% | 100.00%
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