Review the rubric to make sure you understand the criteria for earning your grade. In your...

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Review the rubric to make sure you understand the criteria for earning your grade.

In your textbook,Analysis for Financial Management, read Chapter 3, “Financial Forecasting,” and Chapter 4, “Managing Growth.”
1. Download and review theHiggins Chapter 3 SlidesandHiggins Chapter 4 Slidesto help you further understand the chapter concepts.

ViewFranchising and Managing Growthto hear a financial executive discuss some of the challenges of managing rapid growth.

Research the financial statements for the company you chose for the 3.5 Assignment.
1. Note: it is particularly recommended for this assignment you locate the annual statements (called “10-K” forms) for your company through the company’s web site or by using the SEC’sEDGAR system. Annual statements will often include commentary explaining recent financial challenges and plans for the future.
2. Many free financial websites, such asMorningstar, provide financial data and ratios for public companies. Search for your company on Morningstar and then select “Operating Performance” for a list of ratios for previous years.
3. Consider accessing company reports through OCLS using the Business Insights: Essentials tool. Detailed financial and investment reports are available for hundreds of companies.

Prepare a paper analyzing the company’s growth challenges and making appropriate recommendations:
1. Using the sustainable growth equation from your textbook, calculate the company’s sustainable growth rate for at least the past three years. Compare your calculated sustainable growth rate to the company’s actual growth rate in sales during this period.
2. Begin your paper by creating a table showing the company’s actual growth rates, the sustainable growth rates you calculated, and the four components of sustainable growth: profit margin, retention ratio, asset turnover, and financial leverage (assets/equity).
3. Describe what growth challenge the company is currently facing.
4. Analyze what actions the company has taken to deal with their particular growth challenge. Your analysis should be based on changes in the components of sustainable growth, on the actions reported by executives in annual reports, and on any other commentary you discover through your research.
5. Make a series of specific recommendations on what actions the company could take in the future to address its growth challenges.

Be sure to provide a detailed analysis and recommendation that demonstrates your critical thinking and understanding of financial analysis. Your finished paper should be 500–600 words in length.

Prepare your paper in Microsoft Word in a professional manner, using proper spelling, grammar, and APA style. Include a reference list. Be sure to cite your sources appropriately for your financial data and any commentary or analysis you rely upon.
1. For questions on APA style, go to theAPA Style Guide.

When you have completed your assignment, save a copy for yourself and submit a copy to your instructor by the end of the workshop.

voros-ws4-amqrajwu.docx

Prince · Accepted Answer

Koninklijke Philips N.V.: Assessing Sustainable Growth Rates and Growth Challenges
Student Name
4th Jan 2023
Introduction
This paper will analyze the growth of Koninklijke Philips N.V. (Philips) over the past three years and discuss the challenge currently facing the company and potential strategies to address it. Using the sustainable growth equation, we will calculate and compare the company’s actual growth rates to its sustainable growth rate. We will then analyze the strategic actions taken by Philips to address its growth challenge and recommend potential solutions.
Sales Growth of Philips in last 3 Years
	Years
	Sales Growth
	2019
	7.51%
	2020
	0.31%
	2021
	-12.18%
Source: Morningstar
Sustainable Growth of Philips in last 3 Years
	Years
	Profit Margin
	Retention Rate
	Asset Turnover
	Financial Levarge
	Sustainable Growth
	2019
	5.99%
	42%
	0.73
	2.14
	3.91%
	2020
	6.08%
	100%
	0.71
	2.33
	10.06%
	2021
	19.35%
	27%
	0.58
	2.14
	6.42%
Source: Morningstar
Overview of Growth Challenges Facing Philips
Philips currently faces several major growth challenges. The company has faced slowing growth in its consumer electronics and lighting segments due to increased competition, as well as decreased profitability in its healthcare segment. In addition, Philips has seen stagnation in some of its core markets, such as Europe and North America. As a result, the company is looking to expand its operations into new, more profitable markets, such as Asia and South America. Lastly, Philips has had limited success with its innovation and research and development efforts, which has hampered the company’s growth. 
Analysis of Actions Taken to Address Growth Challenges
Philips has taken a variety of actions in order to respond to its growth challenges, such as diversifying its operations, revamping its product lines, investing in emerging markets, and strengthening its marketing strategies.

Review the rubric to make sure you understand the criteria for earning your grade.In your textbook,Analysis for Financial Management, read Chapter 3, “Financial Forecasting,” and Chapter 4, “Managing...

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