Using Excel to analyze financial information.
1. Pick any publicly traded company that you would like. You will be accumulating three years of balance sheets in Excel, and creating common-size statements for each of those years. (If you would like to have more information about common-size statements, look at http://www.netmba.com/finance/statements/common-size/.) You should also create a number of graphs illustrating the balance sheet information. You may obtain company information either from the SEC (Edgar) or from the company’s website.
2. Use the same company as the previous exercise. Note that you will be accumulating three years of income statements as well as preparing common-size statements, calculating the following financial statement ratios and preparing a number of graphs illustrating those ratios and any other information you feel is important.
The ratios to be prepared are:
Debt to equity ratio
Gross profit ratio
Return on assets
Return on equity
Inventory ratios, if appropriate