This assignment is aimed to increase your understanding of how financial statements provide insights into the firms potential competitive state in the future. Plus appendices (with tables of ratios), as needed. CHOOSE COMPANY YOU WANT.

This is the link data: Income statement & Balance Sheet.

http://www.nasdaq.com/symbol/pzza/financials?query=income-statement

http://www.nasdaq.com/symbol/pzza/financials?query=balance-sheet

_ Calculate at least 4 ratios over 5 years. Liquidity, activity, leverage, profitability, market

_ Define average ratios for at least 3 competitors

_ Compare firm to basket of competitors

_ Determine whether the focal firm is in better or worse shape than the basket now and in the future.

_ Three elements of the above for each ratio:

Definition e.g. quick ratio of 2.3 basket = 1.7 = firm has more discretionary resources than the industry basket and ostensibly can pay its bills more effectively

Retrospective how did the firm get there e.g. more cash from operations, longer period to collect receivables, longer period to pay payables allow the firm to keep cash longer

Prospective is this a positive or a negative in the future:

*Positive if the firm has better cash flow that gives the firm more opportunities to take advantage of opportunities or more slack

*Negative if the firm has slower payables then risk of default is higher or if they are keeping cash by paying payables more slowly may tick off creditors although the later may be a good thing if it is a sign that suppliers value the firm.

Writeup section.

a, If ratios in the same category tell the same story, either horizontally or over time, write them all up together

b, If any ratio or set of ratios tell different stories, write them up separately

c, Must have a prospective statement for every ratio/set of ratios

d, Summarize

- What is the overall potential competitive position of the firm based on the numbers?

- Does the firm have or can the firm get the resources to do what you suggest?

PLEASE HELP ME!!! THANK YOUUUU