This question has two parts: calculations and a 4- to 6-page reflection. While the calculation requirements of this assignment are important, equally important are your discussion and analysis of the quantitative results. You will submit two documents:
1) Spreadsheet containing your horizontal and vertical analysis (and perhaps your ratios)
2) Word document containing your essay.
Using the publicly traded company Lindsay corp. (LNN on nyse) out of Nebraska, perform an expanded analysis on the financial statements. Please use the most current 10K statements available http://www.sec.gov and annual statements in finance.yahoo.com. The following links will take you to all annual statements.
Income Statement- http://finance.yahoo.com/q/is?s=LNN+Income+Statement&annual
Balance Sheet- http://finance.yahoo.com/q/bs?s=LNN+Balance+Sheet&annual
Cash Flow- http://finance.yahoo.com/q/cf?s=LNN+Cash+Flow&annual
Recent 10K report- http://www.sec.gov/Archives/edgar/data/836157/000119312513403973/d614377d10k.htm
You will submit both parts.
Part 1 The Spreadsheet: Please complete the following for Lindsay Corp. in an Excel spreadsheet:
1. Horizontal and vertical analysis of the Income Statements for the past three years (all yearly balances set as a percentage of total revenues for that year).
2. Horizontal and vertical analysis of the Balance Sheets for the past three years (all yearly balances set as a percentage of total assets for that year).
3. Ratio analysis (eight ratios of your choosing) for the past three years PLUS a measurement for the creditworthiness of Lindsay Corp. as measured by Altman’s Z-score. Note that you MUST also present industry-average ratios or current year competitor ratios for your ratio analysis. Comparing Lindsay Corp. ratios to John Deere as a close competitor for an industry-average ratio makes your analysis much more meaningful.
Part 2: The Paper:
• 4-6 pages in length.
• Include a proper introduction and conclusion.
• Include a reference page.
• Your paper should provide your reader with an overall understanding of the financial health of your chosen firm including the following:
o Discussion of the ratio analysis results, including rationale for the ratios chosen.
o Discussion of all horizontal and vertical analysis from above.
o Discussion of four items from the management discussion of the firm that support the conclusion formed in your discussion of the financial results.