You are the CFO and you are briefing a new accounting
employee on the debt and leasing situation at the Company.
Steps
Download the most recent K and read the initial section
on management's strategy, the financial statements and the
notes pertaining to debt and leasing. Pay attention to related
notes on accounting policies and property and equipment.
The K is your main source of analysis.
Read about the company's strategy per their website.
Review Value Line to hear about the economic outlook at
competitive environment for this company. See separate
instructions on how to find Value Line at our Library.
Calculate ratios. See table below.
Put your ratios into a chart that can be uploaded as a
picture in Packback. See instructions below for how to do
this.
Address at least two of the questions following the table. As
part of your conclusion, provide your opinion on the
liquidity and solvency trends for the last two years of the
company. Write approximately to single spaced
pages, normal font.
Do NOT copy and paste from the K or another article.Minimum Ratios
You may wish to do some of these ratios separately for longterm
debt and then for leases.
Show the ratios visually in a table or chart. See instructions on
how to upload a visual chart.
Questions to consider.
How does the use of debt and leasing fit in with the company's
strategy?
What is your assessment of liquidity and solvency
required
Will the company need to refinance debts soon and at higher
interest rates?
Has the company used debt to buy back stock?
Has the company used debt to acquire other companies?
Has the company used debt to invest in property?
Is debt being used to finance current operating activities?
Do the upcoming debt payments seem doable?
Are there any unusual covenants or interesting arrangements?
Is there anything that sounds like it is not GAAP?
Company for this Debts and Leases Analysis is FedEx Info from their K in the picutres attached! Please show work for calculations of ratios!
