financial statement analysis 66
Case
Title: Enron’s Demise–Were There Warning Signs?
Questions to answer in the report:
Evaluate Enron’s profit, leverage, and cash flow performance during the period 1998-2000.
Evaluate Enron’s long-run financial performance. Does the data reflect Enron’s transformation from a pipeline company to a trading company?
What is your assessment of Enron’s earnings quality?
Evaluate Enron’s financial leverage at the end of 2000.
Enron’s stock price traded around $62.72 per share at the end of April 2001. Do you think Enron was worth that much?