simple calculate
Select one of the following companies and obtain the company’s financial statements within their Annual Report or 10-K for the appropriate year (see separate instructions for accessing financial statements).
Facebook, Inc. – 12/31/16 and 12/31/15 – investor.fb.com
Hint: Facebook adopted a new accounting standard in 2015 and changed prior year numbers to be in line with the new standard. Make sure to use the 2015 financial statements for 2014 numbers.
Amazon.com – 12/31/16 and 12/31/15 – amazon.com (click on the ‘investor relations’ link at the bottom)
Hint: Amazon adjusted their 2015 numbers in the 2016 financial statements so make sure to use the 2015 numbers that are shown in the 2016 financial statements.
Calculate the following metrics for the company selected for the two most recent years (noted above). Hint: Make sure to use the net income figure (which can also be called net earnings) that is used for EPS anytime you need net income. Make sure to show your calculations for each:
1. Liquidity:Current ratio
2016:
2015:
2. Solvency:Debt to assets ratio
2016:
2015:
3. Profitability:Return on Assets
2016:
2015:
4. Profitability:Earnings per share (EPS)(Hint: Weighted Average Shares Outstanding, which is average common shares outstanding, is included as a line near the bottom of the Statement of Income which may also be called Statement of Earnings.Calculate EPS using the basic net income and common shares numbers, not diluted.)
2016:
2015:
5. Based upon the calculations performed above, comment on the trend in either the Company’s liquidity, solvency, or profitability based on the year over year comparison (trend in the above ratios from 2015 to 2016).
Select one of the following companies and obtain the company’s financial statements within their Annual Report or 10-K for the appropriate year (see separate instructions for accessing financial statements).
Facebook, Inc. – 12/31/16 and 12/31/15 – investor.fb.com
Hint: Facebook adopted a new accounting standard in 2015 and changed prior year numbers to be in line with the new standard. Make sure to use the 2015 financial statements for 2014 numbers.
Amazon.com – 12/31/16 and 12/31/15 – amazon.com (click on the ‘investor relations’ link at the bottom)
Hint: Amazon adjusted their 2015 numbers in the 2016 financial statements so make sure to use the 2015 numbers that are shown in the 2016 financial statements.
Calculate the following metrics for the company selected for the two most recent years (noted above). Hint: Make sure to use the net income figure (which can also be called net earnings) that is used for EPS anytime you need net income:
Liquidity: Current ratio
2016:
2015:
Solvency: Debt to assets ratio
2016:
2015:
Profitability: Return on Assets
2016:
2015:
Profitability: Earnings per share (EPS) (Hint: Weighted Average Shares Outstanding, which is average common shares outstanding, is included as a line near the bottom of the Statement of Income which may also be called Statement of Earnings. Calculate EPS using the basic net income and common shares numbers, not diluted.)
2016:
2015:
Based upon the calculations performed above, comment on the trend in either the Company’s liquidity, solvency, or profitability based on the year over year comparison (trend in the above ratios from 2015 to 2016).
