These are projects posted by the students of Dr. Gove Allen at Brigham Young University. These students have taken one semester-long course on VBA and generally have had no prior programming experience

Thursday, December 9, 2010

Financial Statement Ratio Builder

Executive Summary

All Professional Stem (audit and business analysis) Masters of Accountancy students at Brigham Young University are required to complete a course in financial statement analysis. The final project for that course is to present a valuation of a company of the students' choice. As part of this valuation, students are required to conduct a ratio analysis of the company and its respective industry. Data for this assignment is obtained via S&P’s Compustat, and is found on the Wharton School of Business website. After the company- and industry-specific data is downloaded, students must manually manipulate the data to create 22 separate ratios relating to profitability, efficiency, leverage, cash flow, assets, and other. This process takes a long time, and – because of this – not every student will create all the ratios.

Having a program in Excel that can automatically create these ratios for both the company and its industry will save a lot of time and will also make available better information for the company’s valuation. The program from this project does just that.

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