FINC 3304: Business Finance
Work the Web project : Part 2 (due 2/14/21)
Instructor: Dr. Nazif Durmaz
Work the Web Part-2, Instructions :
You will use some of the techniques discussed in Chapter-3 to do a basic financial analysis of the firm you are
studying.
You will need to use/submit two files for this assignment : one Word file and one Excel file. The XL file will include
the data needed for the Work the Web parts. The WW2 report (Word file) will include the following :
• Basic company information collected in WW1
• Trend analysis of profitability
• Ratio analysis vs competitors
• DuPont Analysis
Please find the attached XL file (SampleWW2.xlsx).
Please refer to this sample file so you understand what you must do for your company.
Data collection
To start WW2 you will need to obtain historical data that will be used in WW2, WW3 and WW4. Even if you
don’t use all the items in this report, make sure you save them in an Excel file that can be used later.
For the exercises use one of the freely available Financial Websites ;
• CSIMarket https://csimarket.com/
• Macrotrends https://www.macrotrends.net/
• Zacks Investment Research https://www.zacks.com/
• Reuters.com https://www.reuters.com/finance
• MSN Money https://www.msn.com/en-us/money
• Yahoo ! Finance https://finance.yahoo.com/
or any other financial website you prefer or can locate your company’s data , copy and paste balance
sheet and income statements for the last 3 to 5 years. Include BS and IS in the same sheet in Excel. Make sure the
columns align. Check how many years are provided in each website and then decide your source.
Trend analysis
ROA and ROE are two of the most important variables that measure the performance of a company. For example ;
you may go to the MSN website and get the 10 year chart of ROA and ROE for your company. You can use the
link below and then click on the Management Effectiveness tab http://www.msn.com/en-us/money/stockdetails/
analysis/fi-126.1.XOM.NYS
Once you include the information on your report, add your comments describing the trend. Is there a trend that
you can see ? Is it improving or deteriorating ? Is there an especially bad year ? If there is, try to explain it.
Another performance measure that investors care about is the stock price. Go to your favorite financial website and
copy/paste a chart of the stock prices over the last 5 years (or 10 years if available). Compare to the previous chart.
Do you see a relationship between profitability and stock prices ? Describe the trend. Is it increasing or decreasing ?
Is there an especially bad year ? If there is, try to explain it.
1
https://csimarket.com/
https://www.macrotrends.net/
https://www.zacks.com/
https://www.reuters.com/finance
https://www.msn.com/en-us/money
https://finance.yahoo.com/
http://www.msn.com/en-us/money/stockdetails/analysis/fi-126.1.XOM.NYS
http://www.msn.com/en-us/money/stockdetails/analysis/fi-126.1.XOM.NYS
– Work the Web project : Part 2 2
Ratio ana ...
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FINC 3304 Business FinanceWork the Web project Part 2 (
1. FINC 3304: Business Finance
Work the Web project : Part 2 (due 2/14/21)
Instructor: Dr. Nazif Durmaz
Work the Web Part-2, Instructions :
You will use some of the techniques discussed in Chapter-3 to
do a basic financial analysis of the firm you are
studying.
You will need to use/submit two files for this assignment : one
Word file and one Excel file. The XL file will include
the data needed for the Work the Web parts. The WW2 report
(Word file) will include the following :
• Basic company information collected in WW1
• Trend analysis of profitability
• Ratio analysis vs competitors
• DuPont Analysis
Please find the attached XL file (SampleWW2.xlsx).
Please refer to this sample file so you understand what you must
do for your company.
Data collection
To start WW2 you will need to obtain historical data that will
be used in WW2, WW3 and WW4. Even if you
don’t use all the items in this report, make sure you save them
in an Excel file that can be used later.
2. For the exercises use one of the freely available Financial
Websites ;
• CSIMarket https://csimarket.com/
• Macrotrends https://www.macrotrends.net/
• Zacks Investment Research https://www.zacks.com/
• Reuters.com https://www.reuters.com/finance
• MSN Money https://www.msn.com/en-us/money
• Yahoo ! Finance https://finance.yahoo.com/
or any other financial website you prefer or can locate your
company’s data , copy and paste balance
sheet and income statements for the last 3 to 5 years. Include
BS and IS in the same sheet in Excel. Make sure the
columns align. Check how many years are provided in each
website and then decide your source.
Trend analysis
ROA and ROE are two of the most important variables that
measure the performance of a company. For example ;
you may go to the MSN website and get the 10 year chart of
ROA and ROE for your company. You can use the
link below and then click on the Management Effectiveness tab
http://www.msn.com/en-us/money/stockdetails/
analysis/fi-126.1.XOM.NYS
Once you include the information on your report, add your
comments describing the trend. Is there a trend that
you can see ? Is it improving or deteriorating ? Is there an
especially bad year ? If there is, try to explain it.
Another performance measure that investors care about is the
stock price. Go to your favorite financial website and
copy/paste a chart of the stock prices over the last 5 years (or
3. 10 years if available). Compare to the previous chart.
Do you see a relationship between profitability and stock prices
? Describe the trend. Is it increasing or decreasing ?
Is there an especially bad year ? If there is, try to explain it.
1
https://csimarket.com/
https://www.macrotrends.net/
https://www.zacks.com/
https://www.reuters.com/finance
https://www.msn.com/en-us/money
https://finance.yahoo.com/
http://www.msn.com/en-us/money/stockdetails/analysis/fi-
126.1.XOM.NYS
http://www.msn.com/en-us/money/stockdetails/analysis/fi-
126.1.XOM.NYS
– Work the Web project : Part 2 2
Ratio analysis
Visit one of the financial websites provided in Data Collection
section that provides financial ratios for your
company, industry, and sector. For instance ; you may go to this
page http://www.reuters.com/finance/stocks/
financialHighlights?symbol=XOM (input the ticker for your
own company) and copy the 7 categories of financial
ratios that Reuters reports for Company, Industry and Sector.
Start with valuation ratios. Please ignore the data
shown in ”Revenue & Earnings per share”. Repeat the process
for the two competitors that you identified in WW1.
Copy the ratios into a new tab in Excel so the rows for your
company and the 2 competitors match. Then rearrange
4. the columns so you can see next to each other the values for
your company, your competitor 1, your competitor 2,
industry and sector.
Once you have them next to each other, you’ll start comparing
the numbers trying to find where your company
performs better and where your company show worse
performance than competitors.
As a minimum, you must find one overall weakness and one
overall strength as suggested by this comparison. It is
not necessary to comment each of the financial ratios, only
those that are perceived as strengths or weaknesses. You
can report strengths or weaknesses in each financial ratio
category but it is not necessary.
Du Pont analysis
You will copy key data you got in Excel into a new sheet. The
specific rows you need are :
spacing
◦ Sales
◦ Net Income
◦ Assets
◦ Debt
◦ Equity
Based on these five rows of data you will calculate the 5 ratios
involved in the Du Pont analysis for each of the
years for which you have information ;
spacing
◦ Profit Margin
◦ Total assets turnover
◦ Return on Assets
5. ◦ Equity Multiplier
◦ Return on Equity
Once you have all the ratios for all the years with data, compare
the components of ROA and ROE against industry
level and make an overall assessment of the performance of the
company. Is the company doing well or not so well ?
Need to monitor PM TAT or EM ? Include any
recommendations that you believe are needed.
http://www.reuters.com/finance/stocks/financialHighlights?sym
bol=XOM
http://www.reuters.com/finance/stocks/financialHighlights?sym
bol=XOM
standardized XOMExxon Mobil Corp (NYS: XOM)Exchange
rate used is that of the Year End reported date Standardized
Annual Balance Sheet Report
Date12/31/201712/31/201612/31/201512/31/201412/31/201312/
31/201212/31/201112/31/201012/31/200912/31/2008CurrencyU
SDUSDUSDUSDUSDUSDUSDUSDUSDUSDAudit StatusNot
QualifiedNot QualifiedNot QualifiedNot QualifiedNot
QualifiedNot QualifiedNot QualifiedNot QualifiedNot
QualifiedNot
QualifiedConsolidatedYesYesYesYesYesYesYesYesYesYesScal
eThousandsThousandsThousandsThousandsThousandsThousand
sThousandsThousandsThousandsThousandsCash &
Equivalents3177000365700037050004658000491300099230001
306800084530001069300031437000Short Term Investments----
---2000169000570000Cash & Equivs & ST
Investments3177000365700037050004658000491300099230001
306800084550001086200032007000Receivables
(ST)2559700021394000198750002800900033152000349870003
8642000322840002764500024702000Inventories169920001508
00001624500016678000161350001454200015024000129760001
155300011646000Other Current
10. Income19848000837500016551000336150003344800047681000
42206000313980001965800046867000Adjustments from Inc to
Cash1163800015313000170720001725600015836000618300013
00300013488000995500010936000Change in Working Capital-
649000-1392000-3113000-4932000-4720000627000-
10120003845000-11590001432000Other Operating Cash Flows-
771000-214000-166000-82300035000016790001148000-
318000-16000490000Cash Flow from
Operations30066000220820003034400045116000449140005617
000055345000484130002843800059725000Purchase of Pty
Plant & Equip-15402000-16163000-26490000-32952000-
33669000-34271000-30975000-26871000-22491000-
19318000Purchase of Investments-5507000-1417000-607000-
1631000-4435000-972000-5340000-1254000-2768000-
4608000Disposal of Investments------
16740001550005710001868000Other Investing Cash
Flows517900051770003273000760800039030009642000124760
00376600022690006559000Cash Flow from Investing-
15730000-12403000-23824000-26975000-34201000-25601000-
22165000-24204000-22419000-15499000Change in ST Debt-
1108000-77730001253000130400011272000-37560001521000-
1129000-310000-414000Change in LT
Debt600001206600080020005662000332000848000436000-
5081000157000-113000Change in Equity-747000-971000-
4032000-13038000-15900000-20745000-20871000-11928000-
18714000-34648000Payment of Dividends-13185000-12615000-
12260000-11816000-11179000-10419000-9326000-8779000-
8303000-8433000Other Financing Cash Flows-150000000-
1000204000-16000-7000-113000-419000Cash Flow from
Financing-15130000-9293000-7037000-17888000-15476000-
33868000-28256000-26924000-27283000-44027000Effect of
Exchange Rate314000-434000-394000-281000-175000217000-
85000-153000520000-2743000Change in Cash-480000-48000-
911000-28000-4938000-30820004839000-2868000-20744000-
2544000Opening
Cash3657000370500046160004644000958200012664000782500
12. %TA8.6177.7687.4647.2747.4547.4177.4298.6129.8569.201Oth
er Assets
%TA5.4145.7575.1655.2925.195.2815.6895.9266.8475.9Total
Assets as 100%100100100100100100100100100100Accounts
Payable & Accrued Exps
%TA8.9898.0068.24710.19711.96613.36615.56114.73815.5561
4.51Accounts Payable
%TA8.0397.2037.3759.25610.84612.12813.40912.49713.01811.
938Accrued Expenses
%TA0.950.8030.8720.9411.121.2372.1522.2412.5382.572Curre
nt Debt
%TA5.1424.1875.5714.9984.5581.0942.3290.9211.0611.052Oth
er Current Liabilities
%TA0.8730.7920.8321.4132.2582.9233.8443.2 443.5624.41Total
Current Liabilities
%TA16.56814.42216.02818.49320.68119.21523.41220.70422.3
1321.53LT Debt & Lease
%TA6.9998.7595.9173.3341.9872.3752.8164.0423.0553.08Pens
ions & OPEB
%TA6.066.2616.7257.3835.9537.577.556.4027.699.09Deferred
LT Liabilities
%TA7.71310.30610.93311.22511.68711.25511.06111.6199.921
8.65Minority Interests
%TA1.9541.9691.7811.9071.8721.7371.9181.9312.0671.999Oth
er Liabilities
%TA6.887.6277.8947.7577.6478.1586.6066.7617.5656.117Total
Liabilities
%TA46.17449.34449.27850.09949.82750.31 53.36251.4652.611
50.465Common Share Capital
%TA4.2033.683.4483.0882.9062.8922.8733.0982.3592.33Retain
ed Earnings
%TA118.885123.468122.475116.85111.714109.56699.96698.82
5118.693116.5Accum Other Comprehens Income %TA-4.664-
6.733-6.982-5.424-3.092-3.651.2591.6561.8870.503Other
Equity %TA2.7194.394.2081.7030.244-0.722-5.274-4.925-
6.114-5.36Total Equity
13. %TA53.82650.65650.72249.90150.17349.6946.63848.5447.389
49.535Total Liabilities & Equity
%TA100100100100100100100100100100Standardized Annual
CS Income Statement Report
Date12/31/201712/31/201612/31/201512/31/201412/31/201312/
31/201212/31/201112/31/201012/31/200912/31/2008CurrencyU
SDUSDUSDUSDUSDUSDUSDUSDUSDUSDAudit StatusNot
QualifiedNot QualifiedNot QualifiedNot QualifiedNot
QualifiedNot QualifiedNot QualifiedNot QualifiedNot
QualifiedNot
QualifiedConsolidatedYesYesYesYesYesYesYesYesYesYesScal
eThousandsThousandsThousandsThousandsThousandsThousand
sThousandsThousandsThousandsThousandsAffiliates Revenue
%TR2.2022.1262.8433.2343.1783.1123.1432.7862.32.321Other
Revenue
%TR97.79897.87497.15796.76696.82296.88896.85797.21497.7
97.679Total Revenue (100%
TR)100100100100100100100100100100Direct Costs
%TR66.43669.52370.01971.89771.93869.68369.9668.44668.18
467.427Gross Profit
%TR33.56430.47729.98128.10328.06230.31730.0431.55431.8 1
632.573Selling General & Admin
%TR16.80316.23614.41710.89610.52110.2511.29813.25615.95
512.065Depreciation & Amortization
%TR8.1419.8676.7124.1993.9213.2943.2043.8523.8372.593Oth
er Operating Expense
%TR0.7330.6490.5660.4050.4510.3820.4280.5590.6510.304Tot
al Indirect Operating Costs
%TR25.67626.75221.69615.514.89213.92614.92917.66720.443
14.962Operating Income
%TR7.8883.7258.28512.60313.1716.39115.11113.88711.37417.
611Interest Income %TR-0.246-0.2-0.116-0.069-0.002-0.068-
0.051-0.068-0.176-0.141Other Non-Operating Income
%TR0000000000Total Non-Operating Income %TR-0.246-0.2-
0.116-0.069-0.002-0.068-0.051-0.068-0.176-0.141Earnings
Before Tax
14. %TR7.6423.5258.16912.53313.16816.32315.0613.81911.19717.
47Taxation %TR-0.48-
0.182.0144.3735.5366.4376.3835.6264.8687.653Minority
Interests
%TR0.0560.2370.1490.2660.1980.5810.2360.2450.1220.345Ext
raordinary Items %TR0000000000Accounting Changes
%TR0000000000Net Income
%TR8.0663.4686.0067.8947.4349.3068.4417.9486.2089.473Pref
erence Dividends & Similar %TR0000000000Net Income to
Common
%TR8.0663.4686.0067.8947.4349.3068.4417.9486.2089.473
Chartshttps://www.msn.com/en-
us/money/stockdetails/analysis/fi-
126.1.XOM.NYShttps://finance.yahoo.com/quote/XOM/chart?p
=XOM#
Reuters rawVALUATION RATIOSXOMVALUATION
RATIOSCVXVALUATION
RATIOSPSX.NCompanyindustrysectorCompanyindustrysectorC
ompanyindustrysectorP/E Ratio (TTM)16.1833.6617.13P/E
Ratio (TTM)18.1533.6617.13P/E Ratio
(TTM)9.3433.6617.13P/E High - Last 5
Yrs.13.7331.1327.94P/E High - Last 5 Yrs.11.2631.1327.94P/E
High - Last 5 Yrs.13.0431.1327.94P/E Low - Last 5
Yrs.8.9214.5512.1P/E Low - Last 5 Yrs.7.9214.5512.1P/E Low -
Last 5
Yrs.8.314.5512.1Beta0.881.311.01Beta1.131.311.01Beta1.451.3
11.01Price to Sales (TTM)1.121.161.08Price to Sales
(TTM)1.11.161.08Price to Sales (TTM)0.381.161.08Price to
Book (MRQ)1.873.043.45Price to Book
(MRQ)1.013.043.45Price to Book (MRQ)1.843.043.45Price to
Tangible Book (MRQ)1.873.163.65Price to Tangible Book
(MRQ)1.053.163.65Price to Tangible Book
(MRQ)2.243.163.65Price to Cash Flow (TTM)8.3315.878.4Price
to Cash Flow (TTM)5.3815.878.4Price to Cash Flow
(TTM)7.3115.878.4% Owned Institutions50.770.50.37% Owned
Institutions62.650.50.37% Owned
15. Institutions74.020.50.37DIVIDENDSDIVIDENDSDIVIDENDS
CompanyindustrysectorCompanyindustrysectorCompanyindustry
sectorDividend Yield3.811.914.85Dividend
Yield5.121.914.85Dividend Yield2.81.914.85Dividend Yield - 5
Year Avg2.492.122.61Dividend Yield - 5 Year
Avg3.232.122.61Dividend Yield - 5 Year Avg--
2.122.61Dividend 5 Year Growth Rate10.2283.0529.43Dividend
5 Year Growth Rate9.6283.0529.43Dividend 5 Year Growth
Rate--83.0529.43Payout Ratio(TTM)59.986.9430.87Payout
Ratio(TTM)69.346.9430.87Payout
Ratio(TTM)24.356.9430.87GROWTH RATESGROWTH
RATESGROWTH
RATESCompanyindustrysectorCompanyindustrysectorCompany
industrysectorSales (MRQ) vs Qtr. 1 Yr. Ago-36.58-18.49-
10.1Sales (MRQ) vs Qtr. 1 Yr. Ago-37.07-18.49-10.1Sales
(MRQ) vs Qtr. 1 Yr. Ago-36.19-18.49-10.1Sales (TTM) vs TTM
1 Yr. Ago-31.8-15.76-11.09Sales (TTM) vs TTM 1 Yr. Ago-
32.39-15.76-11.09Sales (TTM) vs TTM 1 Yr. Ago-33.82-15.76-
11.09Sales - 5 Yr. Growth Rate5.516.6312.32Sales - 5 Yr.
Growth Rate3.6216.6312.32Sales - 5 Yr. Growth
Rate7.4216.6312.32EPS (MRQ) vs Qtr. 1 Yr. Ago-46.49-71.15-
21.86EPS (MRQ) vs Qtr. 1 Yr. Ago-63.11-71.15-21.86EPS
(MRQ) vs Qtr. 1 Yr. Ago38.85-71.15-21.86EPS (TTM) vs TTM
1 Yr. Ago-40.47----EPS (TTM) vs TTM 1 Yr. Ago-57.62----EPS
(TTM) vs TTM 1 Yr. Ago33.51----EPS - 5 Yr. Growth
Rate13.8113.673.07EPS - 5 Yr. Growth Rate14.1113.673.07EPS
- 5 Yr. Growth Rate61.9613.673.07Capital Spending - 5 Yr.
Growth Rate7.941.785.42Capital Spending - 5 Yr. Growth
Rate12.281.785.42Capital Spending - 5 Yr. Growth
Rate8.921.785.42FINANCIAL STRENGTHFINANCIAL
STRENGTHFINANCIAL
STRENGTHCompanyindustrysectorCompanyindustrysectorCom
panyindustrysectorQuick Ratio (MRQ)0.560.821.32Quick Ratio
(MRQ)1.090.821.32Quick Ratio (MRQ)1.20.821.32Current
Ratio (MRQ)0.860.971.57Current Ratio
(MRQ)1.320.971.57Current Ratio (MRQ)1.70.971.57LT Debt to
17. Avg.40.0721.2827.37Effective Tax Rate - 5 Yr.
Avg.41.2921.2827.37Effective Tax Rate - 5 Yr.
Avg.32.5721.2827.37EFFICIENCYEFFICIENCYEFFICIENCYC
ompanyindustrysectorCompanyindustrysectorCompanyindustrys
ectorRevenue/Employee
(TTM)3,777,1325,220,742,4312,754,984,379Revenue/Employee
(TTM)2,218,2695,220,742,4312,754,984,379Revenue/Employee
(TTM)8,003,2155,220,742,4312,754,984,379Net
Income/Employee (TTM)272,284277,340,66380,213,075Net
Income/Employee (TTM)135,039277,340,66380,213,075Net
Income/Employee
(TTM)340,857277,340,66380,213,075Receivable Turnover
(TTM)10.714.55.62Receivable Turnover
(TTM)8.444.55.62Receivable Turnover
(TTM)16.054.55.62Inventory Turnover
(TTM)12.0910.399.09Inventory Turnover
(TTM)12.2910.399.09Inventory Turnover
(TTM)17.0910.399.09Asset Turnover (TTM)0.820.950.73Asset
Turnover (TTM)0.540.950.73Asset Turnover
(TTM)2.260.950.73MANAGEMENT
EFFECTIVENESSMANAGEMENT
EFFECTIVENESSMANAGEMENT
EFFECTIVENESSCompanyindustrysectorCompanyindustrysect
orCompanyindustrysectorReturn on Assets
(TTM)5.913.955.04Return on Assets (TTM)3.273.955.04Return
on Assets (TTM)9.633.955.04Return on Assets - 5 Yr.
Avg.11.735.328.95Return on Assets - 5 Yr.
Avg.10.345.328.95Return on Assets - 5 Yr.
Avg.7.485.328.95Return on Investment
(TTM)7.337.438.22Return on Investment
(TTM)3.767.438.22Return on Investment
(TTM)12.77.438.22Return on Investment - 5 Yr.
Avg.15.189.5512.81Return on Investment - 5 Yr.
Avg.12.169.5512.81Return on Investment - 5 Yr.
Avg.10.169.5512.81Return on Equity
(TTM)11.3510.5811.16Return on Equity
18. (TTM)5.5610.5811.16Return on Equity
(TTM)2110.5811.16Return on Equity - 5 Yr.
Avg.23.1614.0915.34Return on Equity - 5 Yr.
Avg.17.7414.0915.34Return on Equity - 5 Yr.
Avg.14.8414.0915.34
Ratios arrangedVALUATION
RATIOSXOMCVXPSX.NCompanyCompanyCompanyindustryse
ctorMake sure the industry and sector numbers are the same for
your 3 companiesP/E Ratio (TTM)16.1818.159.3433.6617.13If
they aren't, then keep those for your company, and erase the
industry and sector of the competitorsP/E High - Last 5
Yrs.13.7311.2613.0431.1327.94P/E Low - Last 5
Yrs.8.927.928.314.5512.1Beta0.881.131.451.311.01Price to
Sales (TTM)1.121.10.381.161.08Price to Book
(MRQ)1.871.011.843.043.45Price to Tangible Book
(MRQ)1.871.052.243.163.65Price to Cash Flow
(TTM)8.335.387.3115.878.4% Owned
Institutions50.7762.6574.020.50.37DIVIDENDSCompanyComp
anyCompanyindustrysectorDividend
Yield3.815.122.81.914.85Dividend Yield - 5 Year Avg2.493.23-
-2.122.61Dividend 5 Year Growth Rate10.229.62--
83.0529.43Payout
Ratio(TTM)59.9869.3424.356.9430.87GROWTH
RATESCompanyCompanyCompanyindustrysectorSales (MRQ)
vs Qtr. 1 Yr. Ago-36.58-37.07-36.19-18.49-10.1Sales (TTM) vs
TTM 1 Yr. Ago-31.8-32.39-33.82-15.76-11.09Sales - 5 Yr.
Growth Rate5.53.627.4216.6312.32EPS (MRQ) vs Qtr. 1 Yr.
Ago-46.49-63.1138.85-71.15-21.86EPS (TTM) vs TTM 1 Yr.
Ago-40.47-57.6233.51----EPS - 5 Yr. Growth
Rate13.8114.1161.9613.673.07Capital Spending - 5 Yr. Growth
Rate7.9412.288.921.785.42FINANCIAL
STRENGTHCompanyCompanyCompanyindustrysectorQuick
Ratio (MRQ)0.561.091.20.821.32Curre nt Ratio
(MRQ)0.861.321.70.971.57LT Debt to Equity
(MRQ)11.6218.9138.4146.45187.63Total Debt to Equity
(MRQ)20.123.1638.5967.72203.44Interest Coverage (TTM)-----
