FCF construction and ration analysis


Case-1:  FCF and Ratio Construction:

Dear BSA 554,

For the week-1 case-1 assignment you will be examining the 2015 fiscal year’s financial statements for Altria, ticker symbol “MO”.

Please use the following link to complete this assignment:


You will need to review the balance sheet and the income statement information.

You will also need the information from the “Statistics” tab:


The first case is due by this upcoming Sunday, October 16th, and is worth 30-points.   Please place your work in the appropriate drop-box in the week-1 tab.

Please review figure 2.5 on page 65 in the text regarding the Free Cash Flow Construction.  Please find the Free Cash Flow amount for 2015 using the 2015 and 2014 financial statements.

Please note that you should show the construction of each of the 5 steps.   This is worth 10-points.

Please review table 3.1 on page 112.  Please construct and show all of your calculations for the following ratios for fiscal 2015:

Current Ratio,

Quick Ratio,

Total Asset Turnover,

Inventory Turnover,

Debt-to-Asset Ratio,

Profit Margin,

Return on Assets,

Equity Multiplier, and the

DuPont Return on Equity.

Each ratio is worth 2-points, but the DuPont ROE construction is worth 4-points.

Please review figure 3.1 for the equity multiplier and figure 3.2 for the DuPont ROE.  Please remember that you will have to show your inputs and calculations in order to earn points on the case assignments.  

Just providing a number for an answer without calculations will “NOT” earn you any points in this course.

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