Netflix (NFLX) and AMC Theaters (AMC) The DuPont project (using the tools and techniques given in Chapters 3 and 4 of the textbook) and its subsequent report (15-20 pages) are based on the Financial Ratio Analysis (DuPont Chart Analysis) of a company and its available current financial data. The students are required to evaluate the company based on the trends in its financial ratios over time and evaluate them against the industry standard (a major competitor). Details, including the selection of the company (for time-series evaluation) and its competitor (for cross-section evaluation), will be discussed throughout the semester. In general, the ratio analysis is done in the following steps:

DUPONT RESEARCH ANALYSIS REPORT AND PROJECT Netflix (NFLX) and AMC Theaters (AMC) The DuPont project (using the tools and techniques given in Chapters 3 and 4 of the textbook) and its subsequent report (15-20 pages) are based on the Financial Ratio Analysis (DuPont Chart Analysis) of a company and its available current financial data. The students are required to evaluate the company based on the trends in its financial ratios over time and evaluate them against the industry standard (a major competitor). Details, including the selection of the company (for time-series evaluation) and its competitor (for cross-section evaluation), will be discussed throughout the semester. In general, the ratio analysis is done in the following steps: • In writing, submit the name of the company (publicly traded) and the name of its major competitor company within the first three weeks of classes for approval. Select the company and its competitor you want to use for your Financial Management Project and submit the company names to me ASAP. Netflix (NFLX) and AMC Theaters (AMC) • • Evaluate the company using the following ratios: Current Ratio, Quick Ratio, Cash Ratio, Days Sales Outstanding, Inventory Turnover, Production Cycle, Accounts Receivables Turnover, Average Collection Cycle, Accounts Payable Turnover, Average Payment Cycle, Cash Conversion Cycle, Sales-to-Working Capital, Capital Intensity, Total Asset Turnover, Debt Ratio, Cash Coverage, Equity Ratio, Debt-to-Equity, Leverage Ratio, Times Interest Earned, Total Profit Margin, Operating Profit Margin, Net Profit Margin, Operating Income Return on Asset, Return on Total Asset, Return on Common Equity, Equity Multiplier, Price-Earnings, Price Earnings-to-Growth, Market-Value to Book-Value, Dividend Payout, Retention Ratio, Dividend Yield Ratio, and Growth Rate. • Use the ratio values to show performance trends (time-series analysis) of the company (at least for five years). • Find industry quartiles for each of the ratio and evaluate the company ratios against the industry norm (a major competitor company) (cross-section analysis). • Write the analysis of the company on each of the ratio areas (both time-series and cross-sectional analyses). • Use the web resources available to obtain information on both time-series and cross-section ratios. A series of web addresses that also provide company financial and economic information are given below. www.MergentOnline.com Remote access to http://www.mergentonline.com Username: finacct Password: rtlibrary • •      http://finance.yahoo.com  http://www.reuters.com/finance  http://www.sec.gov  http://www.moneycentral.com  http://www.frb.org  http://www.bloomberg.com  http://www.census.gov/econ/  http://www.stat-usa.gov/  http://www.sba.gov  http://www.aflcio.org/corporateamerica  http://www.startupjournal.com  http://www.careers-in-business.com  http://www.fma.org  http://www.irs.gov  http://www.corpgov.net  http://www.nysedata.com  http://www.nasdaq.com  http://www.federalreserve.gov  http://stats.bls.gov  http://www.investor.reuters.com  http://www.moneyadvisor.com/calc  http://www.kiplinger.com/calc/calchome.html  http://www.standardandpoors.com  http://www.bigchart.com  http://www.dinkytown.net  http://www.ibbotson.com  http://www.financeadvisor.com/coc.htm  http://www.tmpages.com  http://www.sternstewart.com • Make sure to attach all the relevant printouts such as ratios and financial statements (submit them as attachments through the Assignment facility in the BlackBoard) you have obtained from various web sources with your final write-up. • A report (15-20 pages) from this research is to be turned in by Due Date: MAY 01, 2019 (Monday). Details will be discussed throughout the semester. • Use the Assignment facility in the BlackBoard to submit your DuPont Project. • The report must be of professional quality in terms of format, typing, grammar, spelling, etc. Severe grade reductions will result from failure to present a professional document. It is expected that there will not be any misspelled words or typos. The following format should be used to prepare the report: 1) Cover page 4) Company Ratio Analysis 7) Bibliography 2) Abstract 5) Time series and Cross-sectional analysis of ratios 8) Appendix/Attachments 3) Company Introduction 6) Conclusion 9) Excel Ratio Calculations IMPORTANT PROJECT SUBMISSION INFORMATION • Upload your project analysis as a word file and the project calculations as an excel document. You must complete your calculations in excel. • You must upload my approval e-mail on the selection of companies. A screenshot of the e-mail can be uploaded as a valid document. I will not accept the project if the companies do not have my prior approval. • I use safe-assign to check for plagiarism in the project. Do not copy any materials from previous projects or from the Internet. I will penalize heavily on copied materials. • A total of three documents must be uploaded: o My approval e-mail on company selection. o The project analysis as a word document. o The project calculations as an excel document. • You will receive a grade of “Zero” if you fail to upload the project documents by the Due Date. Steps to Select Publicly-Traded Company and its Competitor 1. Go to https://finance.yahoo.com/. 2. From the top Menu options, click on “Industries” (https://finance.yahoo.com/industries). 3. Select an “Industry Sector” of your choice. [DO NOT SELECT “FINANCIAL INDUSTRY SECTOR”]. 4. SELECT two competitive companies from the same industry sector and use the “Company Symbols” to collect Company Data. [DO NOT SELECT ANY "FINANCIAL COMPANY".] Accessing Mergent Online Financial Data To access Mergent Online financial data, 1. First, log on to http://www.mergentonline.com 2. At the Welcome screen, click enter mergent online 3. At the Basic Search screen, select Company Name or Ticker Symbol for identifier and type in the company name or ticker symbol in the search box below 4. At the Search Results screen, click on your company 5. At the Company Details screen, click on the appropriate tab to obtain financial data a. For example, if you are using data directly out of the financial statements, click on Company Financials to access Balance Sheet and Income Statement b. For example, if you want competitors data, click on Competitors c. For example, if you need data on selected ratios, click on Company Financial and then on Ratios Note: YOU NEED TO PLAN FIRST (MUST HAVE A STRATEGY) BEFORE COLLECTING DATA. To access industry (peer average) for your company 1. At the Company Details screen, a. Click Create Reports b. Click Comparison Reports c. Click Compare Against Industry (you want to compare against industry) 2. At the Comparison Reporting Selection Screen a. Select SIC (standard industrial classification – this is industry code for your firm) b. Select Target country (USA) (you want US companies only) c. Select all companies (you want to compare against all companies in the industry) d. Check Use extended report items – a drop-down selection menu will appear e. Select Ratios for Category and your ratio(s) for Sub-category. f. Click on Add Report Item to put your ratio(s) in the criteria box g. Check Include average in heading below the criteria box h. Select which year(s) i. Finally, CLICK on Create Report Industry average and ratio values for your firm and all firms in the same SIC industry will appear on the screen. You may download these data to Excel.