S & P Projects

DuPont Ratio
Using Barrick Gold Corp. (ABX) and Placer Dome Inc. (PDG), calculate all three components of the Dupont ratio for the past three years using the annual financial statements for these companies. Comment on the reasons why ROE is different for the two companies and why ROE has changed for each company over the past three years.

Statement of Changes in Financial Position
Choose a company and using the four most recent quarterly financial records, construct a statement of changes in financial position (a cash flow statement) for each quarter. Is there any apparent trend in cash flow changes over the one-year period? What does this indicate?

Inventory Turnover
Using the annual financial statements, calculate the inventory turnover for Corel Corp. (CORL) and Air Canada (ACNAF) for the past five years. What do you notice about the difference in the inventory turnover for these two companies? Is there a reason why the inventory turnover is lower for Air Canada? What does this tell you about comparing ratios across industries?

Valuation Ratio Analysis
Pick two companies in the same industry. Examine the valuation ratios for the trailing twelve months on the Financial Highlights page. How do the companies compare to each other and the industry? If you were to invest in one of these two companies, which would it be? Why?

Profitability Ratio Analysis
Pick two companies in the same industry. Examine the profitability ratios for the trailing twelve months on the Financial Highlights page. Which company has generated greater profits? How do the companies compare to the industry?

Equity Multiplier
Calculate the equity multiplier for Brascan Corp. (BNN), Ipsco (IPS), Alberta Energy Company (AOG) and Sun Life Financial (SLC) using the most recent annual balance sheet. Comment on any similarities or differences between these companies and explain how they might affect the Equity Multiplier.

Cash Flow Identity
Using the most recent annual balance sheet and income statement for Canadian National Railways (CNI), calculate the cash flow identity. Include in your calculations the operating cash flow, net capital spending, change in net working capital, cash flow to creditors and cash flow to stockholders.

Common Size Financial Statements
Pick two companies in the same industry and calculate the common size income statement and balance sheet using the most recent quarterly information. Comment on any similarities and differences in your calculations.