You are currently in a summer internship at a renowned brokerage firm. You have been there for a few weeks. You have completed a few low-impact administrative assignments given to interns to keep them busy ("busy work"). Impressed by your diligence, the firm’s CFO has decided to assess your critical thinking and quantitative skills with a practical assignment. Knowing that you have been trained in Professor Carr's Principles of Finance class to perform financial statement analysis, you have been asked to quickly provide a set of key financial ratio analysis for two companies: General Motors (Ticker Symbol: GM) and Apple Inc. (Ticker Symbol: AAPL) as information which the CFO can use to create a vital investment report to her clients. She has helped instruct you on how to get started. You have 2 hours to complete the following tasks:
Added by Sherry M.
Step 1
(AAPL). You can find these on their respective investor relations websites or financial databases like Yahoo Finance, Google Finance, or the SEC's EDGAR database. Show more…
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In this project, we will use the financial Internet website, morningstar.com, to analyze a company of your choice. Please do not use Hewlett Packard. Once on the website, you simply enter the company's ticker symbol (Ex. Macy would use "M") to obtain the financial information needed. We will also perform a trend analysis, where we evaluate changes in key ratios over time. There will be two parts to this project. Part 1 will involve gathering data points to put into Excel. Part 2 will involve analyzing those data points by answering a series of questions. Within these questions, you will explain what each topic means, why it is used, and how your company has performed. Through the Morningstar website, you can find the firm's financials (Income Statement, Balance Sheet, and Cash Flow) on an annual or quarterly basis for the five most recent time periods by clicking on each statement's name as you scroll down your screen. In addition, the site contains Key Ratios (Profitability, Growth, Cash Flow, Financial Health, and Efficiency) for 10 years. (From the home screen, click on "Key Ratios" and "Full Key Ratios Data." Then the next screen shows 10 years' worth of key ratios.) We will use the Key Ratios on this site to conduct the firm's trend analysis. (At the top of the home screen, you will see that you can click on the "Learn" tab and select "Investing Glossary" to find definitions.) Part 1: Gather the following information and place it into Excel to compare data. Use this Excel spreadsheet: Final Project BADM 335 - Financial Management.xlsx - Current Ratio - Financial Leverage (Equity Multiplier) - Debt/Equity - Profit Margin/Net Margin% - ROA - ROE - Daily sales outstanding - Inventory Turnover - Fixed Assets Turnover - Total Assets Turnover Part 2: Based on your findings above, answer the following questions: 1. Briefly explain what each ratio means, why it is important, and how it is calculated. 2. Choose several ratios from above to explain what this company has done well over the last 10 years. 3. Choose several ratios from above to explain what this company needs to work on moving forward or point out an area of concern for this company. 4. Would you invest in this company? Why or why not? Is it a long-term investment, short-term, or a wait-and-see? Use specific data points from above to argue your position.
Akash M.
Step 1: Choose TWO publicly-traded companies from the same industry. Step 2: Calculate key financial ratios listed below for the two publicly-traded companies, using data in their most recent ‘annual’ financial statements as well as from the current stock market. [ 60 points ] [Liquidity] Current ratio, Acid-test ratio, Inventory turnover [Profitability] Operating profit margin, Total asset turnover [Financing] Debt ratio, Equity ratio, Times interest earned (= interest coverage ratio) [Shareholder value] Return on equity, Price/earnings ratio *You must show your calculation process as well.
The goal of the project is to have students practice corporate financial decision-making workflow and apply qualitative and quantitative financial statements analysis to support core financial decisionmaking for a public company. The project requires students to focus on a pair of public companies in a specific industry and work on a series of aspects in financial management. Each aspect comes with detailed requirements and guidelines and here are the major aspects: Part I. Financial Status Examination Part II. Capital Investment Condition and Risk Analysis Part III. Working Capital Management Part IV. Cost of Capital Candidate industries and pertaining companies include: Oil & Gas: CVS vs. XOM Consumer Products: HD vs. LOW Automotive: F vs. GM Food & Beverage: KO vs. PEP Please select one industry from the above four. For the pair of companies of your selection, please visit their investor relationships section of their official websites. Download the 2023 10K and read the business description, usually first 10-20 pages on 10K. Financial performance monitoring is an important part of corporate financial management. Part I aims to get you familiar with extracting financial operation and performance information from publicly available information. Please collect relevant data and financial information and fill out the Part I Report with your best answer. Data and information is not limited to each firm’s 10-K, which can be downloaded on the company website. You may find a lot of financial media coverage and financial analysts’ follow-up for these companies. For any numbers, ratios, statement or comment used in your report, please provide the citation and reference list at the end of your report, unless ratios are calculated by yourself.
Breanna O.
Recommended Textbooks
Horngren’s Cost Accounting
Cost Accounting A Managerial Emphasis
Principles of Accounting Volume 1: Financial Accounting
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