This assignment is the third part of your course project. Using the two companies that are from the same industry, complete the following: Required:
- Find their latest annual report.
- Utilizing the data from the annual report compute the following:Liquidity RatiosActivity or Asset Utilization RatiosProfitability RatiosLeverage Ratios also called Debt Utilization RatiosCoverage Ratios
- In a 2-3 page report, present the computations and provide a brief analysis.
Stock
Watch
Date |
Stock |
Stock Symbol |
Current Price |
Board T raded On |
Financial Facts |
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04/15/13 |
Microsoft Corporation |
MSFT |
28.69 |
Nasdaq |
MSFT pays a 0.92 Dividend; current assets have risen each year over past three years; income statements show positive growth over past three years |
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AT&T |
T |
37.95 |
NYSE |
T pays a 1.80 Dividend; Balance sheet reflects current assets dropped from 2011 to 2012; Income statements reflect fluctuating amount of profit over past three years, no losses |
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Apple, Inc |
AAPL |
419.85 |
AAPL pays a 10.62 Dividend; Balance sheet reflects current assets have risen over the past three years; Income statement shows positive growth over past three years. |
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American Eagle Outfitters |
AEO |
19.16 |
AEO pays a 0.44 Dividend; Balance sheet reflects current assets have dropped in the past year; profits have increased on the income statement over the last three years. |
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Starbucks Corporation |
SBUX |
57.71 |
SBUX pays a 0.84 Dividend; Balance sheet reflects current assets have risen over the past three years; Income statement reflects that the company has had increased profits over the last three years and has not operated at a loss. |
The three stocks that I would like to choose are:
Microsoft Corporation (MSFT)
Apple, Inc (AAPL)
Starbucks Corporation (SBUX)
The other two investments that I choose are:
Wells Fargo Special CD 58 month term at .60% APY
Wells Fargo Money Market Savings at .03 APY
The Money Market Savings will be the most affected by the interest rates as they change. This is because the rate is adjustable as the interest rates within the economy change.
Most Risky to Least Risky
5. Starbucks
4. Apple
3. Microsoft
2. Money Market Savings
1. Special CD
Starbucks is the most risky because their product is the most likely to be affected by recession economic issues. This can cause their stock price to vary greatly. Apple is number four because they have all of their eggs in one basket per say, if the iPhone or iPad does not continue to do well, the company would be in serious trouble. Microsoft is less risky because they are better diversified than Apple. The Money Market is more secure than any of the stocks but the rate can change which makes it more risky than the guaranteed percentage on the special CD which is the most secure, and best deal.