Analyze Financial Ratio’s Stock Market Analysis -

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Presentation transcript:

Analyze Financial Ratio’s Stock Market Analysis - Find information using CNN Money Analyze Financial Ratio’s Stock Market Analysis - Name of Company – ___________ Ticker Symbol – ____ Summary of Headline news article –

Find information using CNN Money & Company website Company background General background information (Industry Name, Corporate Headquarters, Number of Employees, etc.) Brief company history (How and when it started leading into the current history).

Find information using CNN Money & Company website Product Line Production, Marketing and Competition What product / services lines does your company offer? Include a brief description of major product/service lines. Include top (2) competitors.

Company Name Profit Margin = Net Income / Net Revenue Find information using CNN Money & calculate using Income Statement Company Name Profit Margin = Net Income / Net Revenue __________ ________ Calculation: __________________ According to research a Gross Profit ratio of 20% or higher is excellent.

Company Name Debt Ratio = Total Liabilities/Total Assets Find information using CNN Money & calculate using Balance Sheet ______ Calculation: _______________________ ______Debt Ratio According to research a Debt ratio less than 30 is desirable.

P/E Ratio & (ROI) Return on Investment Find information using CNN Money P/E Ratio & (ROI) Return on Investment P/E Ratio - stock price divided by company earnings (annual net income) Look for a P/E value of less than 20 ______________________ Return on Investment (1 Year ROI) – Look for ROI of 10% or higher _________________________

Company/Investment Reflection Reflection/Analysis – Explain (in a complete paragraph) why this company would or would not be worthy of buying as an investment. Reference all (4) ratios. Rate the company as an investment. (Excellent, Good, Average or Poor and why.)