Ie248:Cost Accounting Case Study 1

573 Words3 Pages
IE 248 Spring 2014 Case 1 Due Date: April 30, 2014 Annual reports present an opportunity to analyze a company as you might initially evaluate any public company. They are published by companies to provide important financial information to shareholders, financial analysts and other outside parties. The focus of an annual report is the financial reports we have been studying: the income statement, and the balance sheet. Companies are also required to provide other types of information, including an auditor's report, notes to the financial statements, management's discussion and analysis, business segment information, and certain historical data. In addition, an annual report may contain information about the company's products, facilities, strategies or other topics at management's discretion. This case is an analysis through the fundamental financial statements of two companies. You will want to calculate a number of financial ratios, to analyze the basic financial statements and to highlight significant points underlying trends. In order to understand many of these points you will have to study management's discussion of financial condition and results of operations as well as the notes to the financial statements. Included in this case is the analysis of three companies in the retail business. You are required to make sound analysis of each of these companies and compare them with each other. I. Ratio Analysis Calculate the following ratios for each company for the last three fiscal years and make a comparison based on these ratios. | 2013 | | 2012 | | 2011 | A. Profitability Ratios | | | | | | | | | | | | Profit margin | | | | | | Return on assets (ROA) | | | | | | Return on equity (ROE) | | | | | | | | | | | | B. Activity Ratios | | | | | | | | | | | | Asset turnover | |
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