WRDS Financial Ratio Project You are calculating financial ratios for the three years XXXXXXXXXXinclusive) for a randomly chosen company and comparing the results with industry averages found in...

Topic: Mondelez International - Confectioners


WRDS Financial Ratio Project You are calculating financial ratios for the three years 2018-2020 (inclusive) for a randomly chosen company and comparing the results with industry averages found in Mergent Archives. 1. Log into WRDS and download balance sheets and income statements for the above three years. Compute the financial ratios for your company. (Look in the appendix material for profitability, asset usage and financing ratio definitions.) You are welcome to use EXCEL or do them with a calculator. 2. Go to Mergent Archives for industry information and compare your results with the industry averages you find. What do the ratios tell you about the company and how it is being managed relative to the average firm? Put your analysis in the format below or create your own so long as it is easy to read. RatiosCompanyIndustry Profitability Return on Assets Profit Before Tax etc. Asset Utilization Inventory Turnover Collection Period etc. Financing Debt/Equity Retention Ratio etc. After you have computed the ratios, compare the company to the industry. You want to address whether they are doing better or worse relative to the industry and why. Please try to hold this to no more than 5 pages (not including exhibits) so you want to err on the side of succinct rather than rambling in your discussion of what you observe. Be aware that you are following the BBA Written Assessment Grading Rubric which is posted in the course web site along with other information regarding written assignments and using the Writing Center. Therefore, you need, at minimum, an Executive Summary, visible use of critical thinking skills including the identification, evaluation, analysis and conclusions regarding the assignment together with a consideration of any ethical issues consistent with sustainable activities for the firm. To access a balance sheet and income statement for a company using WRDS: 1. Login to your WRDS account.... 2. Select "Compustat-Capital IQ" from the Current Subscriptions. 3. Scroll down to the "Tools" section on the navigation menu. 4. Select "Complete Financial Statements (xls). 5. Select the date range. 6. Enter the Ticker Symbol for the company in “Company Codes” (Ticker Symbol and Company Codes should both be checked in their radio button.) 7. Click Submit Form. 8. After you submit "Form" a green screen will appear with “Query successfully submitted” and a numerical link. Clicking on the “numerical link” will take you an “Output Files” link which upon being clicked will send the results to the “Download” location on your computer where you will find your statements in EXCEL format. Note they are in “Read Only” form which simply means you cannot change the original data, but are able to manipulate the information in the cells for analysis.