The TE Connectivity Financial Analysis report for most current year's annual reports. 2. Prepare common-size financial statements

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Question:

The TE Connectivity Financial Analysis report for most current year's annual reports.

2. Prepare common-size financial statements (vertical analysis)

3. Prepare trend analysis (horizontal analysis),

4. Compute financial statement ratios for your company and fill in industry comparisons. The following financial ratios will be computed for both companies.

o Profitability Ratios:

▪ Profit Margin Ratio

▪ Return on Assets

▪ Return on Equity

▪ Gross Profit Margin

o Efficiency Indicators:

▪ Accounts receivables turnover

▪ Inventory turnover

▪ Asset turnover

o Liquidity Ratios:

▪ Current ratio

▪ Quick ratio

o Solvency Ratios:

▪ Debt to equity ratio

▪ Debt ratio

▪ Times interest earned ratio

o Market Ratios (use stock price on balance sheet date, or first-day market was open after the balance sheet date)

▪ Price-earnings ratio

▪ Dividend yield ratio

5. In a minimum of 3 pages analyze the results of the above analyses. Focus on the following items. Plus provide the downloaded financial statements,

• Introduce your company. Who are they and what do they do?

Discuss your company’s sales, COGS, and operating expenses using trend analysis. How does this compare to the industry averages?

• Discuss your company’s balance sheet. How did assets change year-over-year? How was this asset change financed? Additional liabilities? Additional equity?

• Discuss your company’s profitability, efficiency and liquidity, solvency, and market ratios (Pick 4 or 5 ratios you think are most important to your conclusion). What does this analysis imply about management effectiveness?

• Is there any other pertinent information you have identified that may impact an investor’s decision to buy the company’s stock? Read MD&A section of 10-k and business new publications.

• Based on your analysis, would you recommend investing in your company? Why?