Key Financial Metrics and Executive Compensation of Companies X, Y, and Z

1) Income statements often include “special income statement items” or items that are unusual or infrequent or both. Do the income statements of your companies include any of these “special items”? If yes, briefly describe them. In addition, indicate whether they have increased or decreased each firm’s net income.

2) Look at the balance sheets of your companies. What is the amount of each company’s total assets? What was the increase/decrease in total assets from the previous fiscal year end? What are the company’s five largest assets? Does the company have any intangibles? If yes, briefly describe them.

3) What is the amount of total liabilities? What was the increase/decrease in total liabilities from the previous fiscal year end? What are this company’s five largest liabilities?

4) What is the amount of total stockholders’ equity? What was the increase/decrease in total stockholders’ equity from the previous fiscal year end? How many shares of common stock were outstanding as of the most recent fiscal year end? Has the number of shares increased or decreased from the previous fiscal year end?

5) Visit the sites of your companies and click on the investor relations and SEC filings sections; under SEC filings choose the proxy view and select the most recent report DEF 14A that is available. Go to Executive Compensation within this proxy. Briefly describe the executive compensation. How does the total compensation of one firm’s highest paid executives compare to the respective compensation of the highest paid executives in the other firm in your group?

6) Review the proxy statement and the Notes to the financial statements. Do they address any related party transactions? If yes, briefly describe what is been discussed.

7) Visit the sites of your companies again and click on the investor relations and SEC filings sections; under SEC filings search for quarterly filings and select the latest 10-Q report. What date was this report filed? In the first few pages, there is a table of contents. What kind of information is included in this company’s 10-Q report? What is a very important difference between the 10-K and 10-Q reports? 

8) Based on the 10-K and proxy reports that you have accessed for these companies briefly describe the management teams.

9) Look for some additional resources that might provide evidence about the skills, experience and reputation of each company’s management, strategy and general risk factors affecting its business. Look for two articles in newspapers and magazines and provide a brief summary. The articles should be dated within the last six months and should express independent not management’s views. You should make appropriate references identifying where the information was obtained from and provide full copies of the articles (not links). You should also briefly describe your reasons for selecting these articles (i.e. their significance for your companies).

10) Is your initial impression about your companies a favorable one or not? List some reasons supporting your answer.