DUPONT RESEARCH ANALYSIS REPORT AND PROJECT: (20 Points) Due Date: DECEMBER 02, 2019 (Wednesday) The DuPont project (using the tools and techniques given in Chapters 3 and 4of the textbook) and its...

DUPONT RESEARCH ANALYSIS REPORT AND PROJECT: (20 Points)

Due Date:
DECEMBER 02, 2019 (Wednesday)

The DuPont project(using the tools and techniques given in
Chapters 3 and 4of the textbook)and its subsequent report(15-20 pages)are based on the Financial Ratio Analysis (DuPont Chart Analysis) of a company and its available current financial data. The students are required to evaluate the company based on thetrends in its financial ratios over time and evaluate them against the industry standard (a major competitor).
Details, including the selection of the company (for time-series evaluation) and its competitor (for cross-section evaluation), will be discussed throughout the semester. In general, the ratio analysis is done in the following steps:

• 
  In writing, submit the name of the company (publicly traded) and the name of its major competitor company within the first three weeks of classes for approval.
  
  
  
  • 
    Select the company and its competitor you want to use for your Financial Management Project andsubmit the company names to me ASAP. I will make sure that no two students select the same companies. Therefore, sooner youprovide the company names to me, more would be the chances that I will allowyou to keep the companies (i.e., nobody else has already selected those companies). By the second week of the class, everybody will be required to select the company and its competitor for analysis. The student will not be allowed to complete the project in the course if the submissions with publicly-traded company names are notreceived by the instructorby the deadline.
    
  
  
  
  


• Evaluate the company using thefollowing ratios: Current Ratio, Quick Ratio, Cash Ratio, Days Sales Outstanding, Inventory Turnover, Production Cycle, Accounts Receivables Turnover, Average Collection Cycle, Accounts Payable Turnover, Average Payment Cycle, Cash Conversion Cycle, Sales-to-Working Capital, Capital Intensity, Total Asset Turnover, Debt Ratio, Cash Coverage, Equity Ratio, Debt-to-Equity, Leverage Ratio, Times Interest Earned, Total Profit Margin, Operating Profit Margin, Net Profit Margin, Operating Income Return on Asset, Return on Total Asset, Return on Common Equity, Equity Multiplier, Price-Earnings, Price Earnings-to-Growth, Market-Value to Book-Value, Dividend Payout, Retention Ratio, Dividend Yield Ratio, and Growth Rate.


• Use the ratio values to show performance trends(time-series analysis)of the company (at least for five years).


• Find industry quartiles for each of the ratio and evaluate the company ratios against the industry norm (a major competitor company)(cross-section analysis).


• Write theanalysis of the company on each of the ratioareas (both time-series and cross-sectional analyses).


• Use theweb resourcesavailable to obtain information on both time-series and cross-section ratios. A series of web addresses that also provide company financial and economic information are given below.

www.MergentOnline.com

Remote access tohttp://www.mergentonline.com

Username:finacct

Password:rtlibrary

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              http://finance.yahoo.com
              
            
            
            
            
          
          
          
          
        
        
        
        
      
      
      
      
    
    
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      http://www.reuters.com/finance
      
    
    
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      http://www.sec.gov
      
    
    
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      http://www.moneycentral.com
      
    
    
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      http://www.frb.org
      
    
    
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      http://www.bloomberg.com
      
    
    
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      http://www.census.gov/econ/
      
    
    
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      http://www.stat-usa.gov/
      
    
    
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      http://www.sba.gov
      
    
    
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      http://www.aflcio.org/corporateamerica
      
    
    
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      http://www.startupjournal.com
      
    
    
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      http://www.careers-in-business.com
      
    
    
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      http://www.fma.org
      
    
    
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      http://www.irs.gov
      
    
    
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      http://www.corpgov.net
      
    
    
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      http://www.nysedata.com
      
    
    
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      http://www.nasdaq.com
      
    
    
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      http://www.federalreserve.gov
      
    
    
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      http://stats.bls.gov
      
    
    
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      http://www.investor.reuters.com
      
    
    
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      http://www.moneyadvisor.com/calc
      
    
    
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      http://www.kiplinger.com/calc/calchome.html
      
    
    
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      http://www.standardandpoors.com
      
    
    
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      http://www.bigchart.com
      
    
    
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      http://www.dinkytown.net
      
    
    
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      http://www.ibbotson.com
      
    
    
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      http://www.financeadvisor.com/coc.htm
      
    
    
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      http://www.tmpages.com
      
    
    
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      http://www.sternstewart.com
      
    
    
    
    
  
  
  
  


• Make sure to attach all the relevant printouts such as ratios and financial statements(submit them as attachments through the Assignment facility in the BlackBoard)you have obtained from various web sources with your final write-up.


• A report(15-20 pages)from this research is to be turned in byDue Date:
  DECEMBER 02, 2019 (Monday). Details will be discussed throughout the semester.


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  Use the Assignment facility in the BlackBoard to submit your DuPont Project.
  


• The report must be of professional quality in terms of format, typing, grammar, spelling, etc. Severe grade reductions will result from failure to present a professional document. It is expected that there will not be any misspelled words or typos. The following format should be used to prepare the report:

IMPORTANT PROJECT SUBMISSION INFORMATION

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  Upload yourproject analysisas a word file and theproject calculationsas an excel document. Youmust complete your calculations in excel.
  


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  You mustupload my approval e-mailon the selection of companies. A screenshot of the e-mail can be uploaded as a valid document.I will not acceptthe project if the companies do not havemy prior approval.
  


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  I usesafe-assign to check for plagiarismin the project.Do not copyany materials from previous projects or from the Internet. I willpenalize heavilyon copied materials.
  


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  A total of three documentsmustbe uploaded:
  
  
  
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    My approval e-mail on company selection.
    
  
  
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    The project analysis as a word document.
    
  
  
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    The project calculations as an excel document.
    
  
  
  
  


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  You will receive a grade of “Zero” if you fail to upload the project documents by the Due Date.
  

Steps to Select Publicly-Traded Company and its Competitor

1. Go to
   https://finance.yahoo.com/
   
   .
   


2. From the top Menu options, click on“Industries”(
   https://finance.yahoo.com/industries
   ).


3. Select an “Industry Sector” of your choice. [DO NOTSELECT“FINANCIAL INDUSTRY SECTOR”].


4. 
   SELECTtwo competitive companiesfrom thesame industry sectorand use the“Company Symbols”to collect Company Data. [DO NOTSELECT ANY"FINANCIAL COMPANY".]
   

Accessing Mergent Online Financial Data

To access Mergent Online financial data,

1. First, log on tohttp://www.mergentonline.com
   


2. At the Welcome screen, clickenter mergent online
   


3. At the Basic Search screen, select Company Name or Ticker Symbol for identifier and type in the company name or ticker symbol in the search box below


4. At the Search Results screen, click on your company


5. At the Company Details screen, click on the appropriate tab to obtain financial data
   
   
   1. For example, if you are using data directly out of the financial statements, click on Company Financials to access Balance Sheet and Income Statement
   
   
   2. For example, if you want competitors data, click on Competitors
   
   
   3. For example, if you need data on selected ratios, click on Company Financial and then on Ratios
   
   
   
   

Note:YOU NEED TO PLAN FIRST (MUST HAVE A STRATEGY) BEFORE COLLECTING DATA.

To access industry (peer average) for your company

1. At the Company Details screen,
   
   
   1. Click Create Reports
   
   
   2. Click Comparison Reports
   
   
   3. Click Compare Against Industry(you want to compare against industry)
      
   
   
   
   


2. At the Comparison Reporting Selection Screen
   
   
   1. Select SIC (standard industrial classification – this is industry code for your firm)
   
   
   2. Select Target country (USA)(you want US companies only)
      
   
   
   3. Select all companies(you want to compare against all companies in the industry)
      
   
   
   4. Check Use extended report items – a drop-down selection menu will appear
   
   
   5. Select Ratios for Category andyour ratio(s)for Sub-category.
   
   
   6. Click on Add Report Item to put your ratio(s) in the criteria box
   
   
   7. Check Include average in heading below the criteria box
   
   
   8. Select which year(s)
   
   
   9. Finally, CLICK on Create Report