Section 1 - Financial Analysis SIHMA Company's Summary Financial Data

(In billions, except per share data)2022 2021 2020 2019 2018 Net Sales21.25 20..75 19.25 19.95 17.50 Gross Profit6.15 7.38 7.27 6.68 6.60 Operating Income2.44 2.90 3.07 2.64 2.85 Net Income1.59 1.84 1.88 1.69 1.82 Restructuring charge (after tax)0.29 0.00 0.09 0.05 0.10 Net Income before restructuring1.88 1.84 1.98 1.74 1.97 Op Income before restructuring2.73 2.90 3.16 2.69 2.84 Total Assets19.38 19.17 17.87 16.67 15.95 Total Liabilities13.85 13.25 12.47 12.80 11.73 Long Term Debt5.43 5.12 4.79 4.88 4.39 Shareholder' Equity5.53 5.92 5.41 3.88 5.22 Treasury Stock at cost2.11 4.73 4.09 4.29 3.81 Basic Earnings per share4.05 4.50 4.55 4.10 4.20Cash Dividends per share2.76 2.58 2.38 2.27 2.15 Closing Stock Price73.56 63.04 63.71 52.74 65.05 Shares Outstanding (billions)0.40 0.41 0.42 0.41 0.41

Using the above information, kindly prepare the following:

1. Prepare the common-size financial statements (both common-size income statements and common-size balance sheets) for all the years. Discuss your findings.

1. Conduct an index number trend analysis for all the items reported. Use year 2018 as the base year. Discuss your findings.

1. Compute any 5 ratios to evaluate the financial position and performance of the companies. Discuss your findings. Explain why each ratio is important to the circumstances of the companies.

1. Using any one of the financial analysis tools that you have learned from this subject, perform the before and after restructuring analysis for this company.