ASSIGN: Financial Analysis Project - Part I

Part I Due: Module 4 (Sunday)

Part II Due: Module 8 (Saturday)

Points: 90

Here are theinstructions

Download instructionsfor the Financial Analysis Project (Parts I & II). You will see there are six required elements of the paper, the first 3 are for Part I and the second 3 are for Part II. For this submission, you will ONLY submit Part I. The Unicheck tool will be used to check originality of your paper. Review the student information about Canvas Unicheck by clicking on the following link to the functionality ofUnicheck(Links to an external site.).

For complete grading details, click on the following document:Financial Analysis Project Part I Rubric

Download Financial Analysis Project Part I Rubric

You will submit your assignment in the module it is due.

I would also like the engagement portion completed

Financial Analysis Project Part I Rubric Criteria Exceeds Expectations Meets Expectations Partially Meets Expectations Does Not Meet Expectations Points 10 9 8 – 7 6 – 0 Company overview and situation analysis Provides a historical background of the primary company and a competitor and an overview of the issues to be addressed in the project Demonstrates an in-depth understanding of the industry, both companies’ history, positions in the market, and a detailed overview of the issues to be addressed in the project Demonstrates a thorough understanding of the industry, both companies’ history, positions in the market, and a fairly detailed overview of the issues to be addressed in the project Demonstrates a basic understanding of the industry, the history of each company, the companies’ positions in the market, and an overview of most of the issues to be addressed in the project Does not demonstrate a basic understanding of the industry, the history of each company, or their positions in the market, or does not provide an overview of the issues to be addressed in the project 25 – 23 22.5 – 21 20 – 16 15 – 0 Ratio and Trend analysis – primary company Perform ratio and trend analysis of financial performance for the primary company (BBA POs #1, #5) Consistently uses all of the relevant ratios to support findings; all ratios are evaluated from the perspective of the trends; had ratios from each of the 4 main categories; the meaning of the numbers are explained in detail, not just listing them. Most of the ratios are used to support findings; most ratios are evaluated from the perspective of the trends; had ratios from each of the 4 main categories Most of the relevant ratios are used to support findings; few of the ratios are evaluated from the perspective of the trends; ratios from all 4 required categories are presented Little or no use of ratios or trend analysis to support findings, use is inconsistent at best 25 – 23 22.5 – 20 20 – 16 15 – 0 Ratio and Trend analysis – competitor Perform ratio and trend analysis of financial performance for the secondary company (BBA POs #1, #5) Consistently uses all of the relevant ratios to support findings; all ratios are evaluated from the perspective of the trends; had ratios from each of the 4 main categories; the meaning of the numbers are explained in detail, not just listing them. Most of the ratios are used to support findings; most ratios are evaluated from the perspective of the trends; had ratios from each of the 4 main categories Most of the relevant ratios are used to support findings; few of the ratios are evaluated from the perspective of the trends; ratios from all 4 required categories are presented Little or no use of ratios or trend analysis to support findings, use is inconsistent at best 10 9 8 – 7 6 – 0 Analysis of current market conditions for the industry Perform benchmarking; provide an analysis of current market conditions for the industry; discuss the implications of trends and conditions on the primary company’s future decisions (BBA POs #1, #4) Provided the data for the industry of the two chosen companies in the paper. It revealed where each company ranked within the industry and some detailed information on the future prospects of this industry. Provided the data for the industry of the two chosen companies in the paper. It revealed some basic information about each company ranked within the industry and some basic information on the future prospects of this industry. Provided some data for the industry of the two chosen companies in the paper. There was little information on the ranking of either company in the industry. Provided little detail about the industry and ranking of the two companies within the industry; OR could have been missing altogether. 10 9 8 – 7 6 – 0 Using research Determining the type of information needed; selecting appropriate sources; using the information obtained to effectively develop all elements of the paper (BBA POs #1, #8) Chose a variety of appropriate sources using multiple criteria (relevance, currency, authority, audience, and point of view) based on the type of information needed to effectively develop all elements of the paper Chose a variety of appropriate sources using several criteria (relevance, currency, and authority) based on the type of information needed to develop all elements of the paper Chose appropriate sources using basic criteria (relevance, currency) based on the type of information needed to develop most elements of the paper Chose a few sources of information using limited criteria (relevance) that did not provide all of the information needed to develop the elements of the paper 10 9 8 – 7 6 – 0 Proficiency in written communication Writing is presented in an organized fashion, with proper grammar and mechanics. APA requirements are met The structure of the paper is logical. Paper contains limited grammatical and mechanical errors. APA format, citations and references are included. The structure of the paper is somewhat clear. Paper contains less than 5 grammatical and mechanical errors. Most APA requirements are met. The structure of the paper is not entirely clear. Paper contains a fair amount of mechanical and grammatical errors. Some APA requirements are met. The structure of the paper is not clear. Paper contains a significant amount of mechanical and grammatical errors. APA requirements were not met. Total: 90 Points BUS3710 Financial Analysis and Application FINANCIAL ANALYSIS PROJECT (Part I & Part II) Objective: Familiarize students with the application of ratio and trend analysis. This project allows you the opportunity to perform critical thinking, by addressing specific financial trends and industry comparisons for a company of your choice. This project will be a comparison/contrast paper that shows a demonstration of the application of financial analysis and critical thinking in a large organization. You will be performing trend analysis and industry comparisons on 3-4 years worth of financial statement data (whatever tells the story). Trend Analysis & Ratio Analysis Ratio analysis uses percentage or decimal calculations of comparison to at least two different sets of financial data. You are comparing how one relates (compares) to another. Decision makers use ratios because they illuminate relationships between financial data taken from the company's statements. Although ratio analysis can be used to evaluate financial performance, the number, by itself, does not reveal the entire story. To take the analysis to the next level, one must engage in trend analysis. Trend analysis utilizes the aforementioned ratios and shows the changes in those ratios, over time. Stakeholders can use trend analysis to not only compare "this year" to "last year" for this company, but can compare each year to the industry as a whole and even to the number one competitor for benchmarking purposes. When you are setting up your paper, it would help to group your ratios and analysis together by content area (profitability, debt management, asset utilization, liquidity, and market value ratios). Deliverables Choose a publicly traded, publicly held, U.S. company. This means you need to pick a company that is public and has stock that trades on the exchange. You will use a variety of sites to find your financial data. Start with either Yahoo! Finance site or www.reuters.com. These two sites will allow you to capture at least one year of data for each of the two companies you are going to review as well as the industry ratios you will need. You will need to acquire annual reports for the company sites for years older than the most current year. You will need to review three - five years of financial information on this company, more years of data will produce a more thorough analysis. Specific areas of analysis are noting major ratio categories and identifying whether the trend is up or down, whether that is good or bad, and why. Once the data are gathered, analyzed, and trends revealed; the student will acquire the same information for a competitor within the same industry. The same ratio and trend analysis will be gathered for the competitor. A comparison will ensue, identifying specific strengths and weaknesses of various components of the financial statements. Upon completion of the original company trend analysis and the competitor's trend analysis, an analysis and trend comparison with the industry is required. This will allow the student to demonstrate an understanding of financial ratios and what trends are present between two different companies in one industry, as well as, being able to determine the position of the industry and be able to project future trends and how the company being evaluated can budget for changes in the industry. Further analysis into the company reveals how the company manages cash, inventory, working capital, long-term debt, and other items in lieu of current market conditions. So . . . .what is required . . . . Part I 1. Your chosen company (financial ratios and trend analysis) a. Using the data provided at the Yahoo! Finance site, use the ratios in the textbook or other sources, and determine the status of your chosen company based on those ratios. Compare performance year-to-year and whether trends appear to be favorable or unfavorable. Consider what the impact might be if those trends continue. The ratios you will be reviewing are the same ratios; as you will find in your textbook. Note that some of these ratios may not be applicable to your company. Some ratios are specific to certain types of firms. Not all firms carry significant accounts receivable as an example. 2. A competitor in the same industry (financial ratios and trend analysis) a. Using the data provided at the site, use the ratios in the textbook and determine the status of your chosen competitor based on those ratios. Also, identify any trends you notice and what the impact might be if those trends continue. 3. The industry as a whole; how does your chosen company compare and what evaluations can you make (predict) for future financial success? a. Review industry data and determine where these two companies fit within that industry. Are they leaders/followers? What does the future hold for this industry? Part II 4. Discuss the company’s current management of working capital and current assets: a. How does seasonality affect cash balances and inventory management? b. Is the company managing and using its current assets well? Why, or why not? c. What type of financing strategy does the company use? d. How might free cash flow impact financing and investing decisions? 5. Using your chosen company and the current conditions in the financial markets, assume the firm needs to raise a large amount of cash. Compare the choices of raising these funds in the capital market (selling new shares of stock)