Sheet1 Name Must Be 3 Consecutive Years 2017 2018 2019 Earni

Question

Sheet1 name must be 3 consecutive years 2019 2018 2017 earnings Before Tax Identify and compile financial data for manufacturing and/or retail firms from Yahoo Finance, focusing on three consecutive years (2019, 2018, 2017). Collect only the following account information: earnings before tax, interest income before tax, income tax expense, approximate tax rate, net operating profit after tax (NOPAT), operating current assets (OCA), operating current liabilities (OCL), net operating working capital (NOWC), net fixed assets (NFA), total operating capital (TOC), and free cash flow (FCF). Ensure that accounts with zero balances across all three years are omitted. Do not copy and paste directly; avoid using a dash to represent zero—use 0 instead. Within your data collection, ensure all account amounts are accurately linked to their respective years. Use the formulas provided to compute FCF for 2019, adapting as necessary for the specific dataset. Remember that: Net operating profit after tax (NOPAT) = EBIT (Earnings Before Interest and Tax) * (1 - Tax Rate) Total Operating Capital (TOC) = NOWC + NFA NOWC = Operating current assets (OCA) - Operating current liabilities (OCL) FCF = NOPAT - (TOC in Year 19 - TOC in Year 18) Calculations of NOWC should exclude receivables and liabilities associated with dividends or interest. Ensure the correct extraction of current assets and liabilities related solely to operating activities. When data is not available or accounts with zero balances are identified, omit them from your analysis.

Dr. Jack HW Helper · Accepted Answer

Introduction Financial analysis of manufacturing and retail firms provides critical insights into their operational efficiency and profitability. Specifically, focusing on earnings before tax, interest income, and related metrics across three consecutive years enables an understanding of trends and financial health. This paper demonstrates the process of collecting relevant financial data, calculating key metrics such as NOPAT, NOWC, NFA, and FCF, and analyzing these to evaluate firm performance. Data Collection and Preparation The first step involves selecting sample firms from Yahoo Finance that are classified either as manufacturing or retail. For each firm, the necessary financial statements — income statement and balance sheet — are extracted for the years 2017, 2018, and 2019. It is crucial to gather data exclusively from operating assets and liabilities, excluding items related to financing activities such as dividends, interest, and debt obligations. For example, current assets like cash and marketable securities, and current liabilities associated with paying suppliers or operations, are considered. Conversely, accounts tied to financing, such as notes payable or bonds payable, are excluded when calculating operating working capital. Calculating Key Metrics Using the formulas provided, the calculation process begins with determining EBIT for 2019, then adjusting for taxes to compute NOPAT. Next, the components of operating current assets and liabilities are identified from the balance sheets to compute NOWC for 2018 and 2019. The sum of NOWC and NFA gives the total operating capital (TOC) for each year. The difference in TOC between years, combined with NOPAT, yields the free cash flow for 2019. Analytical Process By comparing these metrics across the three years, the analysis can identify trends — increasing or decreasing profits, changes in working capital management, and shifts in fixed assets. For instance, a rising NOPAT indicates improving operational

Sheet1 Name Must Be 3 Consecutive Years 2017 2018 2019 Earni

Sheet1 name must be 3 consecutive years 2019 2018 2017 earnings Before Tax

Paper For Above instruction

Introduction

Data Collection and Preparation

Calculating Key Metrics

Analytical Process

Results and Interpretation

Conclusion

References