Financial Statement AnalysisVICTOR AYALA PAUL FULTZ.docx

Financial Statement Analysis
VICTOR AYALA PAUL FULTZ CARLOS
MORALES
Jeremy pierce
EcO/561
OCTOber 31, 2016
Professor ANDRES HINOJOSA
Good evening, we are learning team C. Today we will be
covering accounting and the regulatory environment.
1
Presentation Overview – Part I
In part I of Todays presentation
we will review and analyze calculations via
Northrop Grumman’s financial statements
In part 1 of todays presentation we will review and analyze the
calculations via Northrop Grumman’s financial statements.
2
Profitability Ratio
Measures the income and operating success of Northrop

Grumman
OPERATING MARGIN (TTm) (%) 12.82
Net profit margin (ttm) (%) 8.96
Gross margin (ttm) (%) 23.59
Period Ended 12/31/15 12/31/14 12/31/13 12/31/12
12/31/11
Operating Margin 13.07 13.33 12.66
12.41 12.40
Net Profit Margin 8.46 8.63 7.92 7.84
8.02
Gross Margin 23.98 23.36 21.81
22.13 21.30
(Northrop, 2016)
The first financial calculation that we will review today is the
profitability ration. It measures the income and operating
success of Northrop Grumman.
The operating margin measure the percentage of revenues
remaining after paying all operating expenses. It is calculated
as the trailing 12 months operating Income divided by the
trailing 12 months total revenue, multiplied by 100. Operating
Income is defined as total operating expenses.
Net profit margin is also known as return on sales, this value is
the income after taxes for the trailing twelve months divided by
total revenue for the same period and is expressed as a
percentage.
Gross margin value measures the percentage of revenue left
after paying all direct production expenses. It is calculated as
the trailing 12 months total revenue minus the trailing 12

months cost of goods sold divided by the trailing 12 months
total revenue and multiplied by 100.
Across the bottom is presented a table with profitability ratios
for the last 5 preceding accounting periods. Review of this
information is essential for external sources such as lenders and
investors.
3
Liquidity Ratio
Measures the ability of Northrop Grumman to pay short-term
debt and meet unexpected needs
Current ratio (mrq) 1.13
Quick Ration (MRq) 0.97
Period Ended 12/31/15 12/31/14 12/31/13 12/31/12
12/31/11
Quick Ratio 1.01 1.19 1.51 1.25 1.12
Current Ratio 1.16 1.32 1.63 1.39 1.26
(Northrop, 2016)
The second financial calculation that we will review is the
liquidity ratio. It measures the ability of Northrop Grumman to
pay short-term debt and meet unexpected needs.
The current ratio is the ration of total current assets for the most
recent interim period divided by total current liabilities for the
same period.
The quick ratio, also known as the acid test ratio, is defined as
total current assets minus total inventory for the most recent

interim period divided by total current liabilities for the same
period.
A higher liquidity ratio indicates that a company is more liquid
and has better coverage of outstanding debts.
At the bottom of this slide we have a internal comparison of
Northrop’s liquidity ratios across the last five years.
Comparing previous accounting periods allows internal
company analyst and management to track changes in the
business.
4
Solvency Ratio
Measures the ability of Northrop Grumman to survive in the
long-term.
The third financial calculation that we will review today is the
solvency ratio. It measures the ability of Northrop Grumman to
survive in the long-term.
5
Calculations of Different Companies
As a team we Compare the profitability, liquidity, and solvency
ratios of similar aerospace companies
The fourth financial analysis that our team will present is a
review of calculations of similar aerospace companies. We
compare their profitability, liquidity and solvency ratios.
6
Company Comparison Spreadsheet

He we have a company comparison spreadsheet that presents the
profitability, liquidity, and solvency ratios comparatively for all
of the companies.
7
Company with the Best Numbers
this company had the best numbers for each ratio
After review of the financial data our team noted at (X
Company) had the best financial ratios in the industry.
8
Presentation Overview – Part II
In part II of our presentation we evaluate the selected
companies:
In the second half of our presentation we evaluate the following
companies: (XXX, XXX, XXX).
9
Financial Opportunities Presented by Companies
Evaluation of the financial opportunities
If we were going to lend money to one of the companies
reviewed, it would be?
We based our decision on the following:

He we evaluate the aerospace companies financial opportunities.
If we were to lend money to one of them it would be (xxx). We
based our decision on the following: xxx.
10
Investment Opportunity
Evaluate the investment opportunity presented by the companies
If we could invest $100,000 in one of the companies, which
would the team select?
The basis for our decision was …
In the second part of our investment opportunity we recommend
which company, based on the number, that we would invest
$10,000 in personal investment funds to. The basis for our
decision is as follows: .
11
Employment Opportunities of These Companies
Evaluate the employment opportunities within the companies.
If we could work for any of the companies, which company
would the team select?
Defend the team's decision

In our final slide we evaluate the employment opportunities of
the big three aerospace companies. If we could work for any of
them we would pick (XXX). Our decision was based on the
following facts: .
12
References
Northrop Grumman Corporation. (2016) Financial Info –
Fundamentals – Ratios. Trading Statistics. Retrieved from
http://investor.northropgrumman.com/phoenix.zhtml?c=11
2386&p=irol- fundRatios
Northrop Grumman Corporation. (2016) Financial Info –
Fundamentals – Ratios. Balance sheet. Retrieved from
http://investor.northropgrumman.com/phoenix.zhtml?c=11
2386&p=Irol- fundBalanceA
References

13
Winchester 1
Sam Winchester
Ms. Roberts
English 105
16 October 2015
Annotated Bibliography: Disordered Eating in Female Distance
Runners
Topic: Pressure that is put on female distance runners to
achieve a certain body image
Thesis: Mounting pressures to succeed in the sport paired with
unhealthy media influence are causing many female collegiate
distance runners to fall into disordered eating habits.
Beals, Katherine A. Disordered Eating Among Athletes: A
Comprehensive Guide for Health
Professionals. Champaign: Human Kinetics, 2004. Print.
Katherine Beal’s book Disordered Among Athletes: A
Comprehensive Guide for Health Professionals is an excellent
source for providing information about how to approach and aid
athletes who suffer from disordered eating. In the first section
of her book she focuses on laying a clear base of what
disordered eating habits are, and from there she develops her
study to show how those habits manifest themselves, and why
the female athlete is prone to this type of behavior. A relevant
point she presents is that “for athletes with anorexia bulimia
nervosa, losing weight is viewed not only as a way to achieve
that elusive ‘ideal’ body weight but also as a means of
improving performance” (15). Beal then dedicates a substantial

amount of her study to giving an in-depth guide on how
coaches, trainers, and other professionals can connect scientific
observations with psychology in order to help female athletes
who suffer with this issue, and it goes on to explain why those
efforts are successful. Beyond the psychological aspect, she
also provides a great deal of information regarding the long-
term and short-term physical effects that disordered eating has
on the body of female athletes. The final part of her study
argues the relevance of this topic; some people in the running
community are not as ready to recognize and accept this issue as
a wide-scale and pertinent topic, so Beal closes by working to
further her argument and prove that this is in fact an issue worth
time and attention.
Examining issues with disordered eating from this new angle
helped me to gain a deeper understanding of the topic. This
source is a perfect addition to the other sources I am using
because of the way it brings all of the aspects of my topic
together. It is easy to find sources about athletes and training,
and even pretty easy to find sources about disordered eating, but
this source is directly about the psychology and the sociology
involved with the two aspects intertwined together. So
ultimately, it helped me to bring together what my topic is with
the pop culture aspect since a big part of this book, as well as
my topic, deals with how the pressures and influences of the
world around an athlete can affect habits concerning disordered
eating. The sections of the book that deal strictly with the
medical slant of the topic were not quite as relevant to my paper
specifically; I find it interesting and believe it is important that
athletes, female distance runners especially are aware of the
consequences, but for the sake of time and efficiency I did not
dwell as much on those chapters of the source. This book is
actually geared for professionals in the field who work with
athletes as their superiors, so a lot of the information is not
directly geared at someone in my position since I am still an
athlete myself. However, since I am eager to understand the
topic in its entirety and am writing a research paper about the

many of the aspects that are highlighted within this source,
Beal’s book turned out to be very insightful, helpful, and
interesting.
Katherine Beals’ background is tied directly to this publication,
thus proving her expertise in the field. According to The
University of Utah’s faculty activity report, she is currently a
professor at the University of Utah where she teaches various
courses in nutrition. Before she earned her position there, she
taught similar courses at Ball State University. She earned her
MS in health education at California Poly State University, and
then went on to earn her PhD in Exercise and Wellness at
Arizona State University. She is an active member of the
American College of Sports Medicine as well as the Academy
for Nutrition and Dietetics. Disordered Among Athletes: A
Comprehensive Guide for Health Professionals is far from
Beal’s only publication on the topic of the well-being of female
athletes; she has several other publications directly related to
the topic and even has one book that is specifically titled
Nutritional Needs of Female Athletes. Additionally, Beals has
appeared in the media on several expert panels concerning
nutrition and health with athletes, and in 2012 she was an award
for distinguished teaching in her department (“Katherine A
Beals”). Upon doing this research, it is clear that she is not only
well-learned in the topic, but encouraging to see that these are
the concepts she has actually dedicated her life to studying and
teaching others about.
Daniloff, Caleb. “Running on Empty.” Runner’s World.
Runner’s World, 26 Jan. 2012. Web. 19
Sept. 2015.
In “Running on Empty” Caleb Daniloff tells the story of an
athlete who has dealt with disordered eating that was brought on
because of sport related pressures. This article is special though
because the writer is telling his own story from the first person
perspective, so the information is presented in a manner that is
more intimate, and actually helps the reader to get inside the

mind of the athlete who has dealt with disordered eating. The
author, Caleb Daniloff, describes the personal journey went
down becoming obsessed with training, and desperate to find
more and more ways to improve and be like the elite athletes in
the sport of distance running. He gives insight to what his
thought process looked like on his worst days; in one example
he says “I announced each lost pound to my wife like a sniper
taking out the enemy soldier. The flattened landscape of my
belly made me swoon. Food became one of my mind’s favorite
topics. I got off on the sensation of my stomach grumbling and
learned to fall asleep hungry. But god forbid if the scale go up”
(Daniloff). As Daniloff tells his story, he presents stats from
other research studies, and shares facts about the health hazards
associated with this disorder.
At first, I was not sure as to whether or not this source would be
appropriate to use in a research paper, or if it would be better
left as background info to guide real research on the topic.
However, after collecting other sources I decided that the
addition of this source would help my collection of sources to
be well-rounded. I have other sources that are scholarly articles,
and even another source that tells the story of an athlete’s
personal journey with disordered eating, but this source is
unique because it is this man’s account of the struggle from the
first person perspective. So I got a better understanding for
what goes on inside the mind of an athlete that struggles with
disordered eating, but there is more than just that to the article.
There are lots of definitions given for basic terms that relate to
the topic, simple health facts related to disordered eating are
spelled out, and statistics from scholarly research studies are
presented as well. One downside to this source is that it is the
account of a full grown man, and my paper focuses more on
female collegiate distance runners. Still, there are many
similarities that can be drawn, and this source was valuable for
enhancing my overall understanding of disordered eating.
Greenleaf, Christy, et al. “Female Collegiate Athletes:

Prevalence of Eating Disorders and
Disordered Eating Behaviors.” Journal of American College
Health 57.5 (2009): 489-95. Print.
In “Female Collegiate Athletes: Prevalence of Eating Disorders
and Disordered Eating Behaviors” Christy Greenleaf et al.
present and explain the results of a study that were done to
track the prevalence and behavior of collegiate female athletes
regarding disordered eating. Data was collected from athletes at
three Division I universities and then analyzed thoroughly
making this a highly scientific and detail oriented study. The
doctors who completed this study tracked BMIs for various
sports and conducted blind surveys to learn more about the
prevalence of certain habits among the athletes they studied.
Not surprising at all, the numbers and information showed that
these athletes varied greatly from the normal population. The
underlying purpose though was not just to study the subject, but
to go beyond that and use the data to advocate the need for more
protective measures to be taken by staff members who deal with
the athletes who compete at this level. In fact, Christy
Greenleaf et al. claims that “these data point to the importance
of university and college health professionals being aware of
the prevalence of clinical and subclinical levels of the disorder
and providing assistance to all female college athletes who are
experiencing distress” (492). Greenleaf et al. end the article by
advocating the importance of the involvement of the
professionals who work with athletes on a daily basis.
The research study as well as the stance the authors advocate in
this article is interesting and extremely relevant to the exact
topic I’m researching. The article contains lots of facts and
figures that directly support my thesis, and therefore could
potentially help boost the logos in my final paper. What I
appreciate about this article is that it not only studies the topic
and presents those facts, it also takes a position on whose role it
is to step up and help the athletes with issues connected to
disordered eating. So, the overall effect of the article is quite
dynamic. The explanation of how thorough the research portion

of the project was, and the fact that all four of the authors have
PhDs in related fields gives the audience a reason to heed the
advice and respect the stance that the authors take about
reaching out to help athletes in need of observation and
intervention.
Hendrickson, Brian. “Uphill Battle.” Champion 5.2 (2012): 54-
61. Print.
The journal article “Uphill Battle” is not necessarily a
scientific study, but it tells the story of one female collegiate
distance runner’s battle and eventual triumph over an eating
disorder. The article is about a girl by the name of Megan
O’Grady who ran cross country and track for Carroll University
in Wisconsin. She managed to burst onto the scene her freshman
year of college and became an All-American in cross country,
and the mounting pressure sent her into the spiral of dealing
with disordered eating. Hendrickson writes that “social and
competitive pressures had been brewing, but nobody saw the
mixture churning inside [Megan] each day” (56). So she began
eating less and less, starting binging and purging, and
eventually her weight dropped down below the healthy range
and her mind was trapped by the process. She finally reached
out for help, and after nearly a two year process to recover from
these habits, she was back and competing healthily at the sport
she loved.
Although this article is not necessarily scientific research,
it has been a very beneficial addition the group of sources I
have collected. Essentially, it is exactly the type of situation I
want others to see and be aware of. It tells the real life story of
a girl who felt the pressures that come with the sport, fell into
the habits, but then was cared for and aided in a positive way
that allowed her to return again to being a healthy and happy
athlete. So using her story as an example in conjunction with
the facts and statistics I have from other sources will greatly
increase the pathos in my final paper. Even though this article is
not science, it comes from a respected journal. Champion is a

longstanding journal that is sponsored by the NCAA, so
anything that makes the pages of this journal must be of a high
grade and reputable considering that the journal reflects the
most prevalent sports organization in the nation.
Due to the fact that Brian Hendrickson’s article was
published in a magazine that is not entirely about running and
endurance athlete, I decided to research him in order to
determine how knowledgeable he is in the field. I was
impressed by my findings. According to IUPUI’s faculty
information index, not only is Hendrickson a writer for
Champion, but he is actually the Executive Editor for the entire
journal. He has his Master’s Degree in sports journalism, and in
addition to the writing and editorial work he does he is an
adjunct lecturer for journalism courses at IUPUI in Indianapolis
Indiana. In addition to appearing in Champion, his work has
appeared in Sports Illustrated, ESPN Sport Century, as well as
other major magazines and newspapers. Even though his soul
focus is not disordered eating, he still clearly is a respectable
writer known for producing quality work (“Brian
Hendrickson”).
Summary:
Overall, I feel very confident in the range of sources I
have selected to use in my paper over disordered eating. The
scientific journals I selected are directly relevant to my topic;
there have been a lot of studies done on female distance runners
at the collegiate level and their eating habits. So finding the
science to support my thesis was easy to do. The work of
established writers over the topic, especially the work of
Katherine Beals, provides topic information that is still
professional, but a little less scientific. In her work, the focus
shifts slightly towards the psychological and sociological
aspects of the topic which will also be very important to the
paper I hope to produce. The final layer of sources I will utilize
are the sources I selected with personal accounts, and I think
these sources will be valuable in my attempt to get the audience

to understand exactly what kind of mind games disordered
eating plays with its victims. I’m looking forward to the next
phase of writing.
Works Cited
“Brian Hendrickson.” IUPUI. Indiana University Purdue
University Indianapolis. n.d. Web. 15
Oct. 2015
“Katherine A. Beals.” Faculty Activity Report. The University
of Utah. n.d. Web. 15 Oct. 2015.
1
Paper 3: An Annotated Bibliography
To write an annotation:
An annotation is two paragraphs that (1) summarizes the source,
(2) evaluates the source, and (3) discusses the source’s
relevance to the final paper.
1. In para. 1, start the annotation with this formula:
In [book title or article title], [author (use full name)]
explores/investigates/considers/relates
In “Law and the Media: An Overview and Introduction, ”
Valerie P. Hans considers how . . .
^^^Do this in all four (4) annotations.
2. Continue with a solid summary of what the source is about—
think about five to nine sentences to explain the content to a
reader who is not familiar with it
3. In para. 2, discuss what makes this source credible—consider
two or more of the source evaluation criteria we have been
considering in class (author, author’s style, publisher,
organization, type, information)

4. Then, in the last sentence or few sentences, address the
relevance of the source to the final paper, directly stating how
you will use it.
***Make sure to include at least one (1) properly documented
quotation from each source in its annotation, as that is clearly
required on the assignment sheet.
Brainstorming:
Under each source below, please fill in the author of the source
and then list at least two (2) of the criteria you will address in
the Annotated Bibliography and why—
For example:
Source 1:
Hans, Valerie P.
· Author credibility—Hans is a law professor and has written
two other articles, she also edited a book I am using
· Type—scholarly journal article, published in a scholarly
journal, goes through peer review
Source 1:
Source 2:
Source 3:

Source 4:
Dean Winchester
Ms. Roberts
English 105
6 April 2015
Annotated Bibliography: The Media’s Impact on Copycat Crime
Topic: How the media affects copycat crime
Thesis: This influence can produce dire consequences, and for
this reason, criminologists and psychologists continue to study
this phenomenon in order to better understand and even prevent
future crimes.
Hans, Valerie P. “Law and the Media: An Overview and
Introduction.” Law and Human
Behavior 14.5 (1990): 399-407. Print.
Helfgott, Jacqueline B. “The Influence of Technology, Media,
and Popular Culture on Criminal
Behavior.” Criminal Behavior: Theories, Typologies, and
Criminal Justice. Los Angeles:
Sage, 2008. 367-416. Print.
Phillips, David P. “The Impact of Mass Media Violence on U.S.
Homicides.” American
Sociological Review 48.4 (1983): 560-568. Print.
Surette, Ray. “Pathways to Copycat Crime.” Criminal
Psychology. Ed. Jacqueline B. Helfgott.
Santa Barbara: Praeger, 2013. 251-55. Print.
***All students should complete this much (page 1) of their
Annotated Bibliographies for Friday in addition to the

brainstorming sheet on page 2. Continued drafting of the
Bibliography will go on next week out of class, as we will
watch Miss Representation. We will suspend rough draft and
peer editing for Paper 3; I will be available and will be signing
students up for group conferences, like we did for the library
days, next Wednesday 11/2 and Thursday 11/3.

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