Financial Statement Analysis

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Financial Statement Analysis Project—A Comparative Analysis of Oracle Corporation and Microsoft Corporation_x000D_
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Here is the link for the financial statements for Oracle Corporation for the fiscal year ending 2011. First, select 2011 using the drop-down arrow labeled Year on the right-hand side of the page, and then select Annual Reports using the drop-down arrow labeled Filing Type on the left-hand side of the page._x000D_
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You should select the 10k dated 6/28/2011 and choose to download in PDF, Word, or Excel format._x000D_
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http://www.oracle.com/us/corporate/investor-relations/sec/index.html_x000D_
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Here is the link for the financial statements for Microsoft Corporation for the fiscal year ending 2011. You need to press the word Go on the left-hand side of the page. Then you should select the 10k dated 7/28/2011 and choose to download in Word or Excel format._x000D_
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http://www.microsoft.com/investor/SEC/default.aspx?year=2011&filing=annual_x000D_
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A sample project template is available for download in Doc Sharing. The sample project compares the ratio performance of Tootsie Roll and Hershey using the 2012 financial statements of Tootsie Roll and Hershey provided at their websites._x000D_
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Description_x000D_
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This course contains a Course Project. You will be required to submit one draft of the project at the end of Week 5 and the final, completed project at the end of Week 7. Using the financial statements for Oracle Corporation and Microsoft Corporation, respectively, you will calculate and compare the financial ratios listed further down this document for the fiscal year ending 2011 and prepare your comments about the two companies’ performance based on your ratio calculations. The entire project will be graded by the instructor at the end of the final submission in Week 7, and one grade will be assigned for the entire project._x000D_
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Overall Requirements_x000D_
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For the Final Submission_x000D_
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Your final Excel workbook submission should contain the following items. You cannot use any software but Excel to complete this project._x000D_
1. A completed worksheet title page tab, which is really a coversheet with your name, the course, the date, your instructor’s name, and the title for the project._x000D_
2. A completed worksheet profiles tab that contains a one-paragraph description regarding each company with information about their histories, what products they sell, where they are located, and so on._x000D_
3. All 16 ratios for each company, with the supporting calculations and commentary on your worksheet ratio tab. Supporting calculations must be shown either as a formula or as text typed into a different cell. The ratios are listed further down this document. Your comments for each ratio should include more than just a definition of the ratio. You should focus on interpreting each ratio number for each company and support your comments with the numbers found in the ratios._x000D_
4. The Summary and Conclusions worksheet tab is an overall comparison of how each company compares in terms of the major category of ratios described in Chapter 13 of your textbook. A nice way to conclude is to state which company you think is the better investment and why._x000D_
5. The Bibliography worksheet tab must contain at least your textbook as a reference. Any other information you use to profile the companies should also be cited as a reference._x000D_
Required Ratios for Final Project Submission_x000D_
1. Earnings per Share of Common Stock_x000D_
2. Current Ratio_x000D_
3. Gross Profit Margin_x000D_
4. Rate of Return on Sales (Net Profit Margin)_x000D_
5. Inventory Turnover_x000D_
6. Days’ Inventory Outstanding (DIO)_x000D_
7. Accounts Receivable Turnover_x000D_
8. Days’ Sales Outstanding (DSO)_x000D_
9. Asset Turnover_x000D_
10. Rate of Return on Total Assets (ROA)_x000D_
11. Debt Ratio_x000D_
12. Times Interest Earned Ratio_x000D_
13. Dividend Yield (For the purposes of this ratio, use Yahoo Finance to look up current dividend yield and stock price; just note the date that you looked up this information.)_x000D_
14. Rate of Return on Common Stockholders’ Equity (ROE)_x000D_
15. Free Cash Flow_x000D_
16. Price/Earnings Ratio (Multiple) (For the purpose of this ratio, for Oracle, use the market price per share on May 30, 2011 and for Microsoft, use the market price per share on June 30, 2011.)_x000D_
The Excel files uploaded in the Dropboxes should not include any unnecessary numbers or information (such as previous years’ ratios, ratios that were not specifically asked for in the project, etc.)._x000D_
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Please upload your final submission to the Week 7 Dropbox by the Sunday ending Week 7._x000D_
For the Draft_x000D_
_x000D_
Create an Excel spreadsheet or use the project template to show your computations for the first 10 ratios listed above. The more you can complete regarding the other requirements, the closer you will be to completion when Week 7 arrives. Supporting calculations must be shown either as a formula or as text typed into a different cell. If you plan on creating your own spreadsheet, please follow the format provided in the Tootsie Roll and Hershey template file._x000D_
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Please upload your draft submission to the Week 5 Dropbox by the Sunday at the end of Week 5._x000D_
_x000D_
Other Helpful information_x000D_
_x000D_
If you feel uncomfortable with Excel, you can find many helpful references on Excel by performing a Google search._x000D_
_x000D_
Chapter 13 contains ratio calculations and comparison comments related to Apple and Dell; you will likely find this information helpful._x000D_
_x000D_
BigCharts.com provides historical stock quotes._x000D_
_x000D_
Either APA or MLA style can be used to complete the references on your Bibliography tab. There is a tutorial for APA and MLA style within the Syllabus._x000D_
_x000D_
Grade Information_x000D_
_x000D_
The entire project will be graded by the instructor at the end of the final submission in Week 7, and one grade will be assigned for the entire project. The project will count for 18% of your overall course grade._x000D_
Category Points % Description_x000D_
Documentation_x000D_
and Formatting 9 5% The report will be submitted in the form of an Excel Workbook, with each page (worksheet) of the workbook named appropriately. Please do not use any other software (such as MS Works or Lotus) to complete the project. A quality report will include a title worksheet tab, a worksheet tab for the profile of the two companies, a worksheet tab for the ratio calculations and comments, a worksheet tab for the summary and conclusion, proper citations if applicable, and a bibliography worksheet tab for the references._x000D_
Organization_x000D_
and Cohesiveness 9 5% A quality report will include the content described above in the documentation and formatting section. The ratios should be listed in the same order in which they appear in the project information above._x000D_
Editing 18 10% A quality report will be free of any spelling, punctuation, or grammatical errors. Sentences and paragraphs will be clear, concise, and factually correct. Ratios will be expressed as numbers or percentages, depending on what is appropriate, as is shown in the textbook. Note that not all ratios are shown as percentages. Two decimal places are sufficient for each of the ratios._x000D_
Content 144 80% A quality report will have correct ratio calculations and accurate supporting commentary. Any assumptions, if made, should be spelled out clearly. Supporting calculations must be shown either as a formula or as text typed into a different cell._x000D_
Total 180 100% A quality report will meet or exceed all of the above requirements._x000D_
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Do you want your  assignment written by the best essay experts? Click order now, and enjoy an amazing discount_x000D_
_x000D_
Here is the link for the financial statements for Oracle Corporation for the fiscal year ending 2011. First, select 2011 using the drop-down arrow labeled Year on the right-hand side of the page, and then select Annual Reports using the drop-down arrow labeled Filing Type on the left-hand side of the page._x000D_
_x000D_
You should select the 10k dated 6/28/2011 and choose to download in PDF, Word, or Excel format._x000D_
_x000D_
http://www.oracle.com/us/corporate/investor-relations/sec/index.html_x000D_
_x000D_
Here is the link for the financial statements for Microsoft Corporation for the fiscal year ending 2011. You need to press the word Go on the left-hand side of the page. Then you should select the 10k dated 7/28/2011 and choose to download in Word or Excel format._x000D_
_x000D_
http://www.microsoft.com/investor/SEC/default.aspx?year=2011&filing=annual_x000D_
_x000D_
A sample project template is available for download in Doc Sharing. The sample project compares the ratio performance of Tootsie Roll and Hershey using the 2012 financial statements of Tootsie Roll and Hershey provided at their websites._x000D_
_x000D_
Description_x000D_
_x000D_
This course contains a Course Project. You will be required to submit one draft of the project at the end of Week 5 and the final, completed project at the end of Week 7. Using the financial statements for Oracle Corporation and Microsoft Corporation, respectively, you will calculate and compare the financial ratios listed further down this document for the fiscal year ending 2011 and prepare your comments about the two companies’ performance based on your ratio calculations. The entire project will be graded by the instructor at the end of the final submission in Week 7, and one grade will be assigned for the entire project._x000D_
_x000D_
_x000D_
Overall Requirements_x000D_
_x000D_
For the Final Submission_x000D_
_x000D_
Your final Excel workbook submission should contain the following items. You cannot use any software but Excel to complete this project._x000D_
1. A completed worksheet title page tab, which is really a coversheet with your name, the course, the date, your instructor’s name, and the title for the project._x000D_
2. A completed worksheet profiles tab that contains a one-paragraph description regarding each company with information about their histories, what products they sell, where they are located, and so on._x000D_
3. All 16 ratios for each company, with the supporting calculations and commentary on your worksheet ratio tab. Supporting calculations must be shown either as a formula or as text typed into a different cell. The ratios are listed further down this document. Your comments for each ratio should include more than just a definition of the ratio. You should focus on interpreting each ratio number for each company and support your comments with the numbers found in the ratios._x000D_
4. The Summary and Conclusions worksheet tab is an overall comparison of how each company compares in terms of the major category of ratios described in Chapter 13 of your textbook. A nice way to conclude is to state which company you think is the better investment and why._x000D_
5. The Bibliography worksheet tab must contain at least your textbook as a reference. Any other information you use to profile the companies should also be cited as a reference._x000D_
Required Ratios for Final Project Submission_x000D_
1. Earnings per Share of Common Stock_x000D_
2. Current Ratio_x000D_
3. Gross Profit Margin_x000D_
4. Rate of Return on Sales (Net Profit Margin)_x000D_
5. Inventory Turnover_x000D_
6. Days’ Inventory Outstanding (DIO)_x000D_
7. Accounts Receivable Turnover_x000D_
8. Days’ Sales Outstanding (DSO)_x000D_
9. Asset Turnover_x000D_
10. Rate of Return on Total Assets (ROA)_x000D_
11. Debt Ratio_x000D_
12. Times Interest Earned Ratio_x000D_
13. Dividend Yield (For the purposes of this ratio, use Yahoo Finance to look up current dividend yield and stock price; just note the date that you looked up this information.)_x000D_
14. Rate of Return on Common Stockholders’ Equity (ROE)_x000D_
15. Free Cash Flow_x000D_
16. Price/Earnings Ratio (Multiple) (For the purpose of this ratio, for Oracle, use the market price per share on May 30, 2011 and for Microsoft, use the market price per share on June 30, 2011.)_x000D_
The Excel files uploaded in the Dropboxes should not include any unnecessary numbers or information (such as previous years’ ratios, ratios that were not specifically asked for in the project, etc.)._x000D_
_x000D_
Please upload your final submission to the Week 7 Dropbox by the Sunday ending Week 7._x000D_
For the Draft_x000D_
_x000D_
Create an Excel spreadsheet or use the project template to show your computations for the first 10 ratios listed above. The more you can complete regarding the other requirements, the closer you will be to completion when Week 7 arrives. Supporting calculations must be shown either as a formula or as text typed into a different cell. If you plan on creating your own spreadsheet, please follow the format provided in the Tootsie Roll and Hershey template file._x000D_
_x000D_
Please upload your draft submission to the Week 5 Dropbox by the Sunday at the end of Week 5._x000D_
_x000D_
Other Helpful information_x000D_
_x000D_
If you feel uncomfortable with Excel, you can find many helpful references on Excel by performing a Google search._x000D_
_x000D_
Chapter 13 contains ratio calculations and comparison comments related to Apple and Dell; you will likely find this information helpful._x000D_
_x000D_
BigCharts.com provides historical stock quotes._x000D_
_x000D_
Either APA or MLA style can be used to complete the references on your Bibliography tab. There is a tutorial for APA and MLA style within the Syllabus._x000D_
_x000D_
Grade Information_x000D_
_x000D_
The entire project will be graded by the instructor at the end of the final submission in Week 7, and one grade will be assigned for the entire project. The project will count for 18% of your overall course grade._x000D_
Category Points % Description_x000D_
Documentation_x000D_
and Formatting 9 5% The report will be submitted in the form of an Excel Workbook, with each page (worksheet) of the workbook named appropriately. Please do not use any other software (such as MS Works or Lotus) to complete the project. A quality report will include a title worksheet tab, a worksheet tab for the profile of the two companies, a worksheet tab for the ratio calculations and comments, a worksheet tab for the summary and conclusion, proper citations if applicable, and a bibliography worksheet tab for the references._x000D_
Organization_x000D_
and Cohesiveness 9 5% A quality report will include the content described above in the documentation and formatting section. The ratios should be listed in the same order in which they appear in the project information above._x000D_
Editing 18 10% A quality report will be free of any spelling, punctuation, or grammatical errors. Sentences and paragraphs will be clear, concise, and factually correct. Ratios will be expressed as numbers or percentages, depending on what is appropriate, as is shown in the textbook. Note that not all ratios are shown as percentages. Two decimal places are sufficient for each of the ratios._x000D_
Content 144 80% A quality report will have correct ratio calculations and accurate supporting commentary. Any assumptions, if made, should be spelled out clearly. Supporting calculations must be shown either as a formula or as text typed into a different cell._x000D_
Total 180 100% A quality report will meet or exceed all of the above requirements._x000D_
_x000D_
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