FIN 385 Week 7 Complete Project + Reference page

Date: August 2, 2014

To:

From:

Table of Contents
Summary 3
Company Background 3
Balance Sheets 4
Trends in YTM and Price 6
Purpose of the offering and leverage 10
Credit Rating 11
Rate of Return 13
Comparisons 19
Comments 23
Conclusion 23
Works Cited 25

Summary:

I. Company Background
Caterpillar is the world’s largest….

II. Balance Sheets

One-year Stock Performance

III. Trends in YTM and Price

Currency in
Millions of US Dollars As of: Dec 31
2009
Restated Dec 31
2010
Reclassified Dec 31
2011 Dec 31
2012 4 Year
Trend
Revenues 29,540.0 39,867.0 57,392.0 63,068.0
TOTAL REVENUES 32,396.0 42,588.0 60,138.0 65,875.0
Cost of Goods Sold 23,886.0 30,367.0 43,578.0 47,055.0
GROSS PROFIT 7,465.0 11,307.0 15,734.0 18,023.0
Selling General & Admin Expenses, Total 3,645.0 4,248.0 5,203.0 5,919.0
R&D Expenses 1,421.0 1,905.0 2,297.0 2,466.0
Other Operating Expenses 869.0 1,108.0 1,070.0 934.0
OTHER OPERATING EXPENSES, TOTAL 5,935.0 7,261.0 8,570.0 9,319.0
OPERATING INCOME 1,530.0 4,046.0 7,164.0 8,704.0
Interest Expense -596.0 -245.0 -510.0 -485.0
Interest and Investment Income 98.0 86.0 85.0 82.0
NET INTEREST EXPENSE -498.0 -159.0 -425.0 -403.0
Income (Loss) on Equity Investments -12.0 -24.0 -24.0 14.0
Currency Exchange Gains (Loss) 184.0 -55.0 21.0 -116.0
Other Non-Operating Income (Expenses) 320.0 -5.0 18.0 180.0
EBT, EXCLUDING UNUSUAL ITEMS 1,524.0 3,803.0 6,754.0 8,379.0
Merger & Restructuring Charges -706.0 -33.0 -166.0 -88.0
Impairment of Goodwill -22.0 — — -607.0
Gain (Loss) on Sale of Investments -14.0 6.0 12.0 2.0
Gain (Loss) on Sale of Assets — — 120.0 591.0
Other Unusual Items, Total -225.0 -50.0 -19.0 -27.0
Other Unusual Items -225.0 -50.0 -19.0 -5.0

Yield to Maturity

IV. Purpose of the Offering and Leverage

V. Credit Rating

VI. Rate of Return

Ratio analysis

Liquidity Analysis

1. Current Ratio

2. Quick Ratio

Profitability Analysis

Solvency Analysis

Duo Point Analysis

Stand Alone Risk Analysis

VII. Comparisons

1Table 3: Regression Output

VIII. Comments

Conclusion:

Works Cited