109)
Divide the class into teams of three or four people. Each team member should work the following problem separately outside of class. Then give the students time in class to compare answers with their teammates and put together a final, correct copy of the problem. Each team should turn in only one copy of the problem for grading. All team members will receive the same grade.
Use the adapted financial statements from Halliburton Company to answer the following questions:
1.Calculate the current ratio for 2004.
2.Calculate the current ratio for 2005.
3.Did the current ratio improve in 2005?
4.Calculate cash from operations to current liabilities for 2004.
5.Calculate cash from operations to current liabilities for 2005.
6.Did cash from operations to current liabilities improve in 2005?
7.Calculate the accounts receivable turnover ratio for 2004.
8.Calculate the accounts receivable turnover ratio for 2005.
9.Did the accounts receivable turnover ratio improve in 2005?
10.Use the liquidity ratios you have just calculated to discuss Halliburton Company's liquidity.
11.Calculate the debt-to-equity ratio for 2004.
12.Calculate the debt-to-equity ratio for 2005.
13.Did the debt-to-equity ratio improve in 2005?
14.Use the solvency ratio you have just calculated to discuss Halliburton Company's solvency.
15.Calculate the return on assets for 2004.
16.Calculate the return on assets for 2005.
17.Did the return on assets improve in 2005?
18.Calculate the asset turnover ratio for 2004.
19.Calculate the asset turnover ratio for 2005.
20.Did the asset turnover ratio improve in 2005?
21.Calculate the return on equity for 2004. (Halliburton has no preferred stock)
22.Calculate the return on equity for 2005. (Halliburton has no preferred stock)
23.Did the return on equity improve in 2005?
24.Calculate earnings per share for 2004. (Halliburton has no preferred stock)
25.Calculate earnings per share for 2005. (Halliburton has no preferred stock)
26.Did earnings per share improve in 2005?
27.Use the profitability ratios you have just calculated to discuss Halliburton's profitability.
28.Calculate the price-earnings ratio for 2004.
29.Calculate the price-earnings ratio for 2005.
30.Did the price-earnings ratio improve in 2005?
31.Calculate the dividend yield ratio for 2004.
32.Calculate the dividend yield ratio for 2005.
33.Did the dividend yield ratio improve in 2005?
34.Based on ALL of the ratios you have just calculated, do you consider Halliburton Company to be a good investment? Why?