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Locating Financials
- 1. Locating Financial Information These are the five things you’ll need to know to complete your Week 1 research: • Look at Year-over-Year (YoY) to see if stock price is improving. By how much? • How has the stock price done compared to market indices? Better or worse? • Net Income = a company’s revenue after paying expenses • Net Profit Margin = the percent of income left after expenses. • Debt to Assets Ratio = the percent of a company’s assets owed to others in the form of outstanding debts. This document will walk you through exactly what to do to get these numbers. As you find these numbers, keep in mind that financial statements report them in thousands. That means if the Net Income looks like $31,000 on the financial statement, then the company really made $31,000,000.
- 2. You would show this in your research as $31 million. Here’s what the top part of the finance home page looks like: You’re not sure if your parent company is publicly traded? A quick Internet search will help you discover if, and on what stock exchange. Once you know it’s public, you’ll know you can locate all the required financials. Yahoo.com. has some of the best, most complete and most accessible financial information available in one place. Click on the Finance icon to get to “Finance Home” shown below. Locating Financial Information http://yahoo.com One you’re on the finance page, type your company into the search field at the top. The company’s “ticker symbol” should pop in. Click on the ticker symbol. The small graphic shows the day’s stock price changes. Click on the “Interactive chart” link right above it to enlarge. Make sure it shows “5y” for five years. Locating Financial Information
- 3. Notice the dates at the bottom of the chart. Now you can see how the stock has performed “Year over Year” for the past five years. Locating Financial Information Next, click on the word “Compare. When the small blue box appears, choose “Nasdaq” since Apple trades on the Nasdaq stock exchange. Now you can see how Apple stock has performed in comparison to a much larger slice of the market. It’s fairly easy to do by comparing Apple’s blue line to the Nasdaq’s green line. You can also choose other indexes like the Dow, which more closely represents the New York Stock Exchange. You can even type in a direct competitor like Samsung (for phones). Locating Financial Information Now go back to the Quote Summary Page: Click on Financials: Make sure you see “Income Statement” and “Annual” (blue link on the right). On this statement you’ll discover Net Income and Net Profit Margin . Make sure you are focusing on the column showing the most recent year. • Net Income is a line item, in bold, near the bottom of the
- 4. statement. • Net Profit Margin is Net Income divided by Total Revenue. Total Revenue is near the top of the statement. The closer the percentage is to zero, the smaller the profit margin. For instance, .03 is a 3% profit margin, which is very slim. Locating Financial Information Now click on Balance Sheet (blue link near the top of the statement) to find the Debt to Assets Ratio. Again, you want “Annual” and the column showing the most recent year. • Find “Total Liabilities” and divide it by “Total Assets.” Both are in bold, and in the middle of the page. That’s your Debt to Assets ratio. The closer the number is to 1, the more debt the company has. If the number is more than 1, the company owes more than it’s worth. Congratulations, you made it to the end! Finding Information For company history, position, strategy and mission; for their community or ecological considerations - • Company websites
- 5. • Annual reports • Corporate Social Responsibility reports For economic and financial information - • Yahoo Finance • Stock Exchanges: NYSE, Nasdaq, London Stock Exchange • US Department of Labor • Ward’s (for private companies) For sociological and demographic information - • US Census Bureau • Nielson and Claritas (review My Best Segments) For technology, politics and current events - • Full Sail Library for industry and academic journals • Wall Street Journal • All major network news sites (CNN, BBC, ABC, CBS, NBC, Fox) • TechCrunch (blog- must click through) For global markets - • CIA World Factbook (economic, financial, political, legal, sociological, demographic, etc.) • World Bank (economic, financial) • International Monetary Fund (economic, financial) • Reuters news agency This is a starting list. Feel free to seek other sources that work for you. http://finance.yahoo.com https://www.nyse.com/index http://www.nasdaq.com/ http://www.londonstockexchange.com/home/homepage.htm http://www.dol.gov/dol/topic/statistics/
- 6. http://find.galegroup.com/gdl/help/GDLeDirWardsHelp.html http://www.census.gov/ http://www.nielsen.com/us/en/top10s.html http://www.claritas.com/homepage.html https://orgsync.com/50450/custom_pages/72 http://www.wsj.com/ http://techcrunch.com/ https://www.cia.gov/library/publications/resources/the-world- factbook/ http://www.worldbank.org/ http://www.imf.org/external/index.htm http://www.reuters.com/ Market Segmentation MARKET SEGMENTATION is an integral part of a company's marketing strategy. It is the process of breaking down a larger target market into smaller, more like-minded groups of customers that you can more efficiently market to. Both consumer-oriented and business- oriented companies should segment customers using one of several common approaches. DEMOGRAPHIC Includes age, race, gender, marital status, occupation, education and income. GEOGRAPHIC Specifies a certain community, state, region, country or group of countries. Global businesses must decide whether to maintain a universal message or tailor messages to
- 7. each country's marketplace. PSYCHOGRAPHIC identifies consumers based on interests and activities. Often coincides with how consumers see themselves, or how they identify with a lifestyle. BEHAVIORAL Based on user behaviors. Usage rate refers to frequency. Some may use the product daily while others use it weekly, monthly or infrequently. Benefits sought refers to what satisfaction the user gets out of the product. It is usually emotional at its foundation, such as pride, joy, belonging, etc. ASSIGNMENT 1 -‐ INITIAL COMPANY RESEARCH Student Name: Great FS Student Date: 04/21/17
- 46. Retrieved April 10, 2016, from http://www.penguinrandomhouse.com/books/215254/the- ‐magic-‐tree-‐house-‐library-‐ books-‐1-‐28-‐by-‐mary-‐pope-‐osborne-‐illustrated-‐by- ‐sal-‐murdocc/ ASSIGNMENT 1 - INITIAL COMPANY RESEARCH Student Name: Date: COMPANY: (Include in-text citations) Parent Company (or Holding Company) Name: Brand/Division/Subsidiary Name: https://www.linkedin.com/pulse/confused-terms-subsidiary- affiliate-division-others-gary-kirshenbaum Parent company structure: (begin with a brief history, mention its relationship to the brand you selected, and note its current financial position below): Brand/Division/Subsidiary Detail (begin with a brief history, identify the CEO, and what part in plays in the success of the parent company, i.e. percent of business):
- 47. Parent company financial position (Refer to assignment attachment: “Financial Information Source” for these five financial measures. Remember to include currency and year.) · Year over Year (Stock price going up or down? Give stock price at beginning and end of the most recent 5-year period): · Compare stock performance to a market index (note the percentage of change in the market index, and compare it to the percentage of change in the stock price for the same period): · Net Income: · Net Profit Margin: · Debt to Assets Ratio: BUSINESS LINES OF BRAND OR DIVISION (Include in-text citations) Include a description of the Product or Service Line and the Product or Service example. Do not assume your decision- making client knows what “Mass Effect” is. She may be an Accounting VP, not a gamer. Emphasize benefits to potential and current customers. Product/Service line A Example of Product/Service line A: Product/Service line B Example of Product/Service line B: Product/Service line C Example of Product/Service C: TARGET MARKET FOR BRAND OR DIVISION (Include in- text citations) Complete these segmentations for each Example of the
- 48. Product/Service you identified above. Segment the Market according to what you learned in Introduction to Marketing. Be specific. Avoid broad generalizations like “worldwide”, “everyone” and “all ages.” Example of Product/Service line A: · Geographic: · Demographic: · Psychographic: · Benefits Sought by consumer: · Usage Rate of consumer: Example of Product/Service line B: · Geographic: · Demographic: · Psychographic: · Benefits Sought by consumer: · Usage Rate of consumer: Example of Product/Service line C: · Geographic: · Demographic: · Psychographic: · Benefits Sought by consumer: · Usage Rate of consumer: DIRECT COMPETITION FOR YOUR BRAND OR DIVISION (Include in-text citations) Each Competitor’s Product/Service below should align with the Examples of your company’s Product/Service identified above. For example, Competitor Company 1 Product/Service below should be compared to Example of Product/Service line A above. Name of Competitor Company 1: Competitor Company 1 Product/Service:
- 49. Competes with your Product/Service A: Name of Competitor Company 2: Competitor Company 2 Product/Service: Competes with your Product/Service B: Name of Competitor Company 3: Competitor Company 3 Product/Service: Competes with your Product/Service C: Rank the 4 companies (each Competitor Company listed above and the Company you selectedfor this Assignment). List the companies in order of success. Rank the most successful as #1. Include the metric/numerical evidence used as the basis of the ranking. The metric/numerical evidence can be annual revenue, annual profit, ticket sales, concert tour revenue, fan base size, twitter followers, consumer reviews, age of company, size of company, etc. DO NOT USE current stock price as a measure of success, since it does not offer the necessary context. Ranking: Company #1: Company #2: Company #3: Company #4: FINDINGS: (Include in-text citations) Research leads to findings. Summarize your findings here in two or three well-developed paragraphs (a well-developed paragraph will contain 4-6 sentences). Describe your findings (data), and note whether it was significant or not. Explain what the data you found implies, or says, about your subject. Avoid overstating the importance (“XYZ is sure to dominate the competition for years to come!”). Try to be objective in your description. Use both quantitative and qualitative data from your research:
- 50. REFERENCES: (APA Format) List at least 3 references below using the APA long form guidelines for formatting. Each reference must also have a corresponding in-text citation above to show where it was used. It must be formatted using the APA short form guidelines. Each of the five sections above (Company, Business Lines, Target Market, Competition, Findings) must include at least one in-text citation.