Description
Complete all Questions A-E within the word document. A and B will be completed within the excel sheet provided. C-E will need to be answered within the word document.
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Finance 352
Fundamentals of Security Analysis
Fall Semester, 2023
Equity Research & Valuation Project
Part 6
Financial Analysis
Financial Analysis
•
•
•
Use five years of historical financial data from Mergent.
Download Income Statement and Balance Sheet from
Mergent into Excel.
Reverse column dates from 2022, 2021, 2020, 2019, 2018,
2017 etc. to 2017, 2018, 2019, 2020, 2021, 2022.
A. Revenue Growth past Five Years
1. Focus on CAGR of Key Income Statement Components over most recent 5- year
period.
2. Total Revenue Growth.
a) Annual dollar change.
b) Annual percent dollar change
c) 5-year CAGR
3. COGS, SG&A, Total Operating Expenses.
a) Annual dollars change in COGS, SG&A, and Total Operating Expenses.
b) Annual percent change in COGS, SG&A, and Total Operating Expenses.
c) 5-year CAGRs for COGS, SG&A, Total Operating Expenses.
d)
B. Profit Margins Last Five Years
1. Gross Profit = Revenue – COGS
a) Annual Dollars of Gross Profit
b) Annual Dollar changes in Gross Profit
c) Annual Percent changes in Gross Profit
d) Annual Gross Profit Margin (Gross Profit/Revenue)
e) Trends in Gross Profit Margin.
2. Operating Profit = (Revenue – COGS) – (SG&A) – (Depreciation + Amortization)
a) Annual Dollars of Operating Profit
b) Annual Dollar changes in Operating Profit
c) Annual Percent changes in Operating Profit
d) Annual Operating Profit Margin (Operating Profit/Revenue)
e) Trends in Operating Profit Margin
3. NOPAT = Operating Profit – Taxes
a) Annual Dollars of NOPAT
b) Annual Dollar changes in NOPAT
c) Annual Percent changes in NOPAT
d) Annual NOPAT Margin (Operating Profit/Revenue)
e) Trends in NOPAT Margin.
4. Net Income = NOPAT – Net Interest Expenses
a) Annual Dollars of NOPAT
b) Annual Dollar changes in NOPAT
c) Annual Percent changes in NOPAT
d) Annual NOPAT Margin (Operating Profit/Revenue)
e) Trends in NOPAT Margin.
C. Dividend Policy (if applicable)
If your company does not currently pay a dividend, then when do you
expect it to start doing so? Why?
a) Total $ Dividend per year last 5 years.
b) Total $ Dividends per Share last 5 years
c) Dividend Payout Ratio and Earnings Retention Rate last 5 years.
d) Dividend Yield (Dividends per Share/Price per Share)
D. Stock Buybacks/Repurchases
a) In 2022 or 2023, did your company announce a stock buyback plan?
b) If yes, then what was the approximate dollar amount of the buyback approved by
the BoD.
c) From the 10-Q Reports, how much of the buyback was accomplished?
E. Capital Structure
a) Annual Total $ Book Value of Long-Term Debt + Leases.
b) Annual Total $ Book Value of Equity.
c) Annual Total Book Value of Total Capital a) + b) above.
d) Annual Debt/Total Capital a)/c) from above.
e) Annual Debt/Equity a)/b) from above.
f) Annual Market Value of Equity to Book Value of Equity.
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DoorDash Inc (NMS: DASH)
Exchange rate used is that of the Year End reported date
As Reported Annual Income Statement
Report Date
Currency
Audit Status
12/31/2018
USD
Not Qualified
Consolidated
Yes
Scale
Millions
Revenue
291
$ Change in Revenue
% change in Revenue
Cost of revenue, exclusive of depreciation & amortization shown separately
228
below
$ Gross Profit
Gross Profit Margin
Sales & marketing expenses
135
Research & development expenses
51
General & administrative expenses
78
Net operating Profit
% Net Operating Profit
Adjusted Taxes
NOPLAT
Depreciation & amortization
9
Restructuring charges
Total costs & expenses
501
Income (loss) from operations
-210
Interest income
7
Interest expense
1
Other income (expense), net
Other expense (income), net
Net income (loss) before income taxes – U.S.
-204
Net income (loss) before income taxes – foreign
Income (loss) before income taxes
-204
Current foreign income taxes expense (benefit)
Total current income taxes expense (benefit)
Deferred state income taxes expense (benefit)
Deferred foreign income taxes expense (benefit)
Total deferred income taxes expense (benefit)
Provision for (benefit from) income taxes
Net income (loss) including redeemable non-controlling interests
-204
Less: net income (loss) attributable to redeemable non-controlling interests, net
– of tax
Premium paid on repurchase of redeemable convertible preferred stock
3
Deemed dividend to preferred stockholders
Net income (loss) attributable to DoorDash, Inc. common stockholders -207
Weighted average shares outstanding – basic
44,305
Weighted average shares outstanding – diluted
44,305
Year end shares outstanding
41,802
12/31/2019
USD
Not Qualified
Yes
Millions
885
594
523
594
107
245
32
1501
-616
18
68
-666
-666
1
-667
1
-668
43,252
43,252
43,937
Net earnings (loss) per share – basic
Net earnings (loss) per share – diluted
Number of full time employees
Total number of employees
Number of class A common stockholders
Number of class B common stockholders
Foreign currency translation adjustments
-4,67
-4,67
–
-15,44
-15,44
3279
537
8
–
12/31/2020
USD
Not Qualified
12/31/2021
USD
Not Qualified
12/31/2022
USD
Not Qualified
Yes
Millions
2886
2001
Yes
Millions
4888
2002
Yes
Millions
6583
1695
1368
2338
3588
957
321
556
1619
430
797
1682
829
1147
120
3322
-436
7
32
-3
-463
5
-458
3
-461
-461
62,39
62,39
318,503
156
5340
-452
3
14
-461
-2
-463
5
-468
-468
336,847
336,847
346,512
369
92
7707
-1124
32
2
-305
-991
-408
-1399
4
4
1
-36
-35
-31
-1368
3
-1365
371,413
371,413
391,471
-7,39
-7,39
3886
548
14
–
-1,39
-1,39
8600
84
16
–
-3,68
-3,68
16800
228
17
-16
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