Industry Comparisons Exercises: Series 02

These exercises will help you apply concepts to real companies’ financial statements to compare and contrast their financial performance across industries and time. Companies included in this series of exercises:

•    Alcoa
•    Cisco Systems
•    The Gap
•    Google
•    Hewlett-Packard
•    Hydro
•    JetBlue Airways
•    John Deere & Company
•    John Wiley & Sons
•    Juniper Networks
•    Komatsu
•    Kroger
•    McGraw Hill
•    Peets Coffe & Tea
•    Qantas Airways
•    Rio Tinto
•    Safeway
•    Scania
•    Southwest Airlines
•    Startbucks
•    Tim Horton
•    Time Warner
•    Whole Foods Market
•    YUM! Brands

Sources: Companies’ websites. All brands and product names are trademarks of their respective owners.

 

Click link for related resources:

Exercise 1: Analyzing Balance Sheets

Exercise 2: Analyzing Income Statements

Exercise 3: Financial Reporting Environment

Exercise 4:  Analyzing Cash-Flow Statements

Exercise 5: Receivables, Product Returns, and Ratio Analyses

Exercise 6: LIFO/FIFO Inventories and Ratio Analyses

Exercise 7: Leases and Ratio Analyses

Exercise 8: Time to Reflect

 

 

 

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Exercise 1: Analyzing Balance Sheets

Topics:

  • Level 1: Analyzing Primary Elements - Financial Leverage
  • Level 2: Analyzing Major Categories - Working Capital and Current Ratios
  • Level 3: Analyzing Line Items - Common Balance Sheets and Asset Risks
  • Overall Financial Strength of Balance Sheets Across Companies and Industries

Exercise Materials:

Exercise 1 [pdf]

Excel template 1 [xlsx] Excel template 1[xls]

Word template 1 [docx] Word template 1 [doc]

Videos:

Searching and Locating Annual Reports 1 [10 minutes]

Locating Stock Prices Using Big Charts [3 minutes]

Using Excel 1: Basics [26 minutes]

 

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Exercise 2: Analyzing Income Statements

Topics:

  • Level 1: Analyzing Comprehensive Income- CI-ROE
  • Level 2: Analyzing Major Categories- ROE
  • Level 3: Analyzing Significant Subcategories- DuPont Model
  • Level 4: Analyzing Line Items- Common-Size Statements and Revenue Growth
  • Overall Financial Performance Across Companies and Industries

Exercise Materials:

Exercise 2 [pdf]

Excel template 2 [xlsx] Excel template 2 [xls]

Word template 2 [docx] Word template 2 [doc]

Videos:

Searching and Locating Annual Reports 1 [10 minutes]

Using Excel 1:Basics [26 minutes]

 

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Exercise 3: Financial Reporting Environment

Topics:

  • Fourth Quarter Earnings Conference Calls
  • Analyst Reports
  • Media Reports
  • Stock Market Reaction
  • Overall Financial Reporting Environment

Exercise Materials:

Exercise 3 [pdf]

Word template 3 [docx] Word template 3 [doc]

 

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Exercise 4:  Analyzing Cash-Flow Statements

Topics:

  • Level 1: Big Picture Analysis of Operating, Investing, and Financing Subtotals
  • Level 2: Determining and Analyzing Cash Surpluses and Shortfalls
  • Level 3: Analyzing How Cash Shortfalls are Covered or Surpluses are Used
  • Operating Cash-Flow Reconciliation Analysis
  • Overall Cash Flow Conclusions

Exercise Materials:

Exercise 4 [pdf]

Excel template 4 [xlsx] Excel template 4 [xls]

Word template 4 [docx] Word template 4 [doc]

 

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Exercise 5: Receivables, Product Returns, and Ratio Analyses

Topics:

  • Doubtful accounts allowances comparisons
  • Receivables turnover comparisons
  • Financial-statement consequences of adjusting allowance entries
  • Product returns comparisons
  • Replenishing and using returns allowances
  • Compare and contrast the effects of the financial crisis

Exercise Materials:

Exercise 5 [pdf]

Excel template 5 [xlsx] Excel template 5 [xls]

Word template 5 [docx] Word template 5 [doc]

Excerpt: Revenue Recognition, Bad Debts, and Product Returns [pdf]

 

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Exercise 6: LIFO/FIFO Inventories and Ratio Analyses

Topics:

  • Inventories, turnover, and margin comparisons
  • Consequences of converting LIFO-based ratios to FIFO-based ratios comparisons
  • Effects of inventory impairments and LIFO liquidations on analyses
  • Compare and contrast the effects of the financial crisis

Exercise Materials:

Exercise 6 [pdf]

Excel template 6 [xlsx] Excel template 6 [xls]

Word template 6 [docx] Word template 6 [doc]

 

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Exercise 7: Leases and Ratio Analyzes

Topics:

  • Capitalizing operating leases
  • Analyzing DuPont Model and other ratios based on adjusted numbers
  • Compare and contrast the effects of the financial crisis

Exercise Materials:

Exercise 7 [pdf]

Excel template 7 [xlsx] Excel template 7 [xls]

Word template 7 [docx] Word template 7 [doc]

Videos:

Capitalizing Operating Leases [45 minutes]

Present Values and Future Values [29 minutes] Includes links to present value tables

Using Excel 2: Linking Cells Across Worksheets [9 minutes]

 

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Exercise 8: Time to Reflect

Topics:

  • What are the ten most important things you learned from the course?
  • What criteria did you use to select and rank items for your top-ten list?

Exercise Materials:

Exercise 8 [pdf]

Word template 8 [docx] Word template 8 [doc]

 

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