Finc 3304 business finance work the web project part 2 (

1. FINC 3304: Business Finance
Work the Web project : Part 2 (due 2/14/21)
Instructor: Dr. Nazif Durmaz
Work the Web Part-2, Instructions :
You will use some of the techniques discussed in Chapter-3 to
do a basic financial analysis of the firm you are
studying.
You will need to use/submit two files for this assignment : one
Word file and one Excel file. The XL file will include
the data needed for the Work the Web parts. The WW2 report
(Word file) will include the following :
• Basic company information collected in WW1
• Trend analysis of profitability
• Ratio analysis vs competitors
• DuPont Analysis
Please find the attached XL file (SampleWW2.xlsx).
Please refer to this sample file so you understand what you must
do for your company.
Data collection
To start WW2 you will need to obtain historical data that will
be used in WW2, WW3 and WW4. Even if you
don’t use all the items in this report, make sure you save them
in an Excel file that can be used later.

2. For the exercises use one of the freely available Financial
Websites ;
• CSIMarket https://csimarket.com/
• Macrotrends https://www.macrotrends.net/
• Zacks Investment Research https://www.zacks.com/
• Reuters.com https://www.reuters.com/finance
• MSN Money https://www.msn.com/en-us/money
• Yahoo ! Finance https://finance.yahoo.com/
or any other financial website you prefer or can locate your
company’s data , copy and paste balance
sheet and income statements for the last 3 to 5 years. Include
BS and IS in the same sheet in Excel. Make sure the
columns align. Check how many years are provided in each
website and then decide your source.
Trend analysis
ROA and ROE are two of the most important variables that
measure the performance of a company. For example ;
you may go to the MSN website and get the 10 year chart of
ROA and ROE for your company. You can use the
link below and then click on the Management Effectiveness tab
http://www.msn.com/en-us/money/stockdetails/
analysis/fi-126.1.XOM.NYS
Once you include the information on your report, add your
comments describing the trend. Is there a trend that
you can see ? Is it improving or deteriorating ? Is there an
especially bad year ? If there is, try to explain it.
Another performance measure that investors care about is the
stock price. Go to your favorite financial website and
copy/paste a chart of the stock prices over the last 5 years (or

3. 10 years if available). Compare to the previous chart.
Do you see a relationship between profitability and stock prices
? Describe the trend. Is it increasing or decreasing ?
Is there an especially bad year ? If there is, try to explain it.
1
https://csimarket.com/
https://www.macrotrends.net/
https://www.zacks.com/
https://www.reuters.com/finance
https://www.msn.com/en-us/money
https://finance.yahoo.com/
http://www.msn.com/en-us/money/stockdetails/analysis/fi-
126.1.XOM.NYS
http://www.msn.com/en-us/money/stockdetails/analysis/fi-
126.1.XOM.NYS
– Work the Web project : Part 2 2
Ratio analysis
Visit one of the financial websites provided in Data Collection
section that provides financial ratios for your
company, industry, and sector. For instance ; you may go to this
page http://www.reuters.com/finance/stocks/
financialHighlights?symbol=XOM (input the ticker for your
own company) and copy the 7 categories of financial
ratios that Reuters reports for Company, Industry and Sector.
Start with valuation ratios. Please ignore the data
shown in ”Revenue & Earnings per share”. Repeat the process
for the two competitors that you identified in WW1.
Copy the ratios into a new tab in Excel so the rows for your
company and the 2 competitors match. Then rearrange

4. the columns so you can see next to each other the values for
your company, your competitor 1, your competitor 2,
industry and sector.
Once you have them next to each other, you’ll start comparing
the numbers trying to find where your company
performs better and where your company show worse
performance than competitors.
As a minimum, you must find one overall weakness and one
overall strength as suggested by this comparison. It is
not necessary to comment each of the financial ratios, only
those that are perceived as strengths or weaknesses. You
can report strengths or weaknesses in each financial ratio
category but it is not necessary.
Du Pont analysis
You will copy key data you got in Excel into a new sheet. The
specific rows you need are :
spacing
◦ Sales
◦ Net Income
◦ Assets
◦ Debt
◦ Equity
Based on these five rows of data you will calculate the 5 ratios
involved in the Du Pont analysis for each of the
years for which you have information ;
spacing
◦ Profit Margin
◦ Total assets turnover
◦ Return on Assets

5. ◦ Equity Multiplier
◦ Return on Equity
Once you have all the ratios for all the years with data, compare
the components of ROA and ROE against industry
level and make an overall assessment of the performance of the
company. Is the company doing well or not so well ?
Need to monitor PM TAT or EM ? Include any
recommendations that you believe are needed.
http://www.reuters.com/finance/stocks/financialHighlights?sym
bol=XOM
http://www.reuters.com/finance/stocks/financialHighlights?sym
bol=XOM