Wednesday, 22 January 2014

10-k analysis

Select a publicly quoted company. Obtain the annual report (10-k) of the company for the immediate past year. The form 10-k report is accessible at http://www.sec.gov/edgar.shtml.
An alternative means to obtain the report is by clicking on the SEC filings link on your selected company’s website and search for the latest form 10-k filings.
Write a paper fully addressing the following questions:
1.       What are the keys items covered in the financial section of the report?
2.       What comprises the assets of the company? What are the total assets of the company?
3.       What comprises the liabilities of the company? What are the total liabilities of the company?
4.       What comprises the equity of the company? What is the total equity of the company?
5.       Does the company have pensions and other post-retirement benefits? How much?
6.       Does the company have share-based compensation? How much?
7.       What is the net operating profit for the last year?
8.       What is the cost of goods sold in the past year?
9.       What is the earnings per share for the past year?
In the notes to the financial statements, perhaps the company has accounting changes and errors and corrections. Discuss the stated reasons and types of changes and corrections.
Provide a segmental breakdown of the markets. What is the sales volume from each market? What is the sales trend for each market for the last two years?
Does the company have leases? Does the company have operating leases, capital leases, or both? How does the company account for lease obligations?
Write a report in the form of a paper for the company under the following four headings:
1. Introduction (stating the type of business and general information on the company)
2. Financial Report (answering the specific financial questions)
3. Recommendation
4. Conclusion

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