$23/238239240241242243244245246247248249250251252254256257260261262$EXHIBIT: AVERAGE FINANCIAL MEASURES BY SECTOR$263$GICS SectorCommunication ServicesConsumer DiscretionaryConsumer Staples$253$ Below is Required Homework$264$EnergyHealth Care$258$ Ratio Analysis$266$Industrials$267$Information Technology$255$ Above we describe financial analysts as financial detectives.MaterialsUtilitiesGrand TotalNote: Shading reflects the categories with the highest and lowest results.Company ExamplesGoogle, Facebook, NetflixAmazon, FordP&G$,$ Walmart, CloroxExxon, ChevronAmgen, Pfizer, VS$,$ CignaBoeing, Delta, Waste Mgt$.$Source: Marianne Wolk & Richard HorwitzCisco, Microsoft, SalesforceDupont, Int'l FlavorsCon Ed$,$ Amer. Water WorksWhat is the average spending on SG&A$?$What is the average EBITDA Margin?Gross Margin$55\%32\%$Hint: Use the data in the table on Row $120\mathrm{.}29\%13\%31\%22\%45\%26\%62\%33\%$R&D Pct$4\%2\%0\%0\%4\%19\%9\%1\%0\%3\%265$ What percentage of the comnpanies in the S&P $500($ex Financials$)$ spend more than $7\%$ of Revenues on R&D$?$SG&A Pct$32\%259$ Using SFAM, look at the Income Statement for Salesforce.com $($CRM$)--$ a software company in the Information Technology sector$\mathrm{.}21\%21\%11\%17\%9\%$Below, you must examine the financials of the companies listed and, sleuth$-$like, identify clues to solving this exercise$\mathrm{.}14\%15\%43\%18\%$OperatingMargin$19\%9\%99\%2\%10\%12\%229\%18\%12\%$Net Margin$14\%6\%6\%29679\%8\%179\%79\%9\%89\%$RevenuesGrowth$10965965\%7961095366\%59\%-19\%66$

inancial Position: Income Statement

$3$elow we show a different histogram which counts the number of companies in the S&P $500($ex financials$)$ in each margin interval.

Ne show the percentage of companies in each bucket, rather than the number in each margin category.

For example, this EXHIBIT shows that the lion's share of companies $(33\%)$ report Gross Margins of $30\%-50\%.$

EXHIBIT: AVERAGE MARGINS FOR THE S&P $500($EX FINANCIALS$).12\%5\%7\%7\%18\%9\%14\%25\%$

III

$30\%$

Note: Shading reflects the categories capturing most of companies.

Source: Marianne Wolk & Richard Horwitz

Below is Required Homework

Above we describe financial analysts as financial detectives.

Below, you must examine the financials of the companies listed and, sleuth$-$like, identify clues to solving this exercise.

Ratio Analysis

Using SFAM, look at the income Statement for

Salesforce.com $($CRM$)--$ a software company in the Information Technology sector.

What is the average spending on SG&A$?$

What is the average EBITDA Margin?

What percentage of the companies in the S&P $500($ex Financials$)$ spend more than $7\%$ of Revenues on R&D$?$