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$30.00 fin/200
Q:Final Project: Evaluating an Annual Report
The company I chose is Greif
www.greif.com
Resources: Appendix A
Due Date: Day 7 [Individual forum]
Review Appendix A for details to include in your analysis of your chosen companys
financial health.
Prepare a 1,750- to 2,100-word paper, formatted according to APA guidelines, that
includes performance ratios based on the company's last two annual reports and data
available on the company's Web site.
o Compute the eight ratios listed below for two consecutive years. Discuss their
significance for management and compare them to industry averages.
Current Ratio
Quick Ratio
Inventory Turnover Ratio (Note: on the Dunn and Bradstreet Web site this ratio is
labeled Sales to Inventory)
Debt Ratio (Note: on the Dunn and Bradstreet Web site this ratio is labeled Total
Liabilities to Net Worth)
Net Profit Margin Ratio (Note: on the Dunn and Bradstreet Web site this ratio is
labeled Return on Sales)
ROI (Note: on the Dunn and Bradstreet Web site this ratio is labeled Return on
Assets)
ROE (Note: on the Dunn and Bradstreet Web site this ratio is labeled Return on
Net)
Price-to-Earnings Ratio (P/E) Ratio
o Analyze the company's working capital management. Explain why the companys
operating and cash cycles are currently optimized. If you think they are not optimized,
explain why.
o Based on the companys financial statements, list the long-term debt held by the
corporation, maturity dates and yield to maturity. List the types of stock issued by the
company, the stocks current selling price, and the 52-week average selling price.
o Compute the weighted average cost of capital (WACC) for both years and discuss
your findings.
o Write a brief analysis that summarizes the data youve gathered throughout the
weeks and evaluates how your company compares to industry averages.
o Write your recommendations on whether as an investor you should buy this company's stock and why.Attachments:
fin200_appendix_a.doc (58K)
