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.

http://files.gove.net/shares/files/10f/younggun/Financial_Statement_Ratio_Builder.pdf

http://files.gove.net/shares/files/10f/younggun/Financial_Statement_Ratio_Builder.xlsm