Conduct a swot analysis identifying leverages and problems

Assignment Help Financial Management
Reference no: EM13669836

  1. Internal Environmental Analysis
    1. Financial Analysis of the Organization
      1. A key aspect of the analysis of strengths and weaknesses is a financial analysis.  Financial analysis includes ratio analysis, trend analysis, and comparisons with other companies.  Good financial analysis goes beyond merely calculating numbers; it includes interpretation of what the numbers reveal about the organization's strengths and weaknesses.
      2. The following financial ratios must be researched and discussed:
        1. Short-Term Solvency/Liquidity:  Current Ratio, Quick Ratio, Cash Ratio
        2. Long-Term Solvency/Leverage:  Total Debt to Total Assets, Debt to Equity, Times Interest Earned Asset Utilization (Turnover Ratios):  Inventory Turnover, Days' Sales in Inventory, Receivables Turnover, Days' Sales in Receivables, Total Asset Turnover (Sales/Total Assets)
        3. Profitability Ratios:  Profit Margin, Return on Assets, Return on Equity
        4. Market Value Ratios:  Price-Earnings, Market-to-Book
      3. Use the following format to research and discuss these ratios:
        1. Most Recent Fiscal Year
        2. Prior Year
        3. Ratio Change
        4. Industry Average
        5. Comments of this Ratio
      4. Ratio formulas:
        1. Current:  Current Assets/Current Liabilities
        2. Quick:  (Current Assets - Inventory)/Current Liabilities
        3. Cash:  Cash/Current Liabilities
        4. Total Debt to Total Assets:  (Current + Long-Term Liabilities)/Total Assets
        5. Debt to Equity:  Total Debt/Total Equity
        6. Times Interest Earned:  EBIT/Interest
        7. Inventory Turnover:  COGS/Inventory
        8. Days' Sales in Inventory: 365/Inventory Turnover
        9. Receivables Turnover:  Sales/Accounts Receivable
        10. Days' Sales in Receivables:  365/Receivables Turnover
        11. Total Asset Turnover:  Sales/Total Assets
        12. Profit Margin:  Net Income/Sales
        13. Return on Assets:  Net Income/Total Assets
        14. Return on Equity:  Net Income/Total Equity
        15. Price-Earnings (P/E):  Price per Share/Earnings per Share
        16. Market-to-Book:  Market Value per Share/Book Value per Share
      5. Reminder for students who work for private companies:  A student who works for a private company is strongly encouraged to obtain permission to include actual financial information of their company.  If requested, an instructor can sign a confidentiality agreement to keep proprietary information confidential.  If a student is unable to obtain their company's financial information, they are required to select the company's nearest competitor which is a publicly traded company and use that competitor's financial records for their financial ratio analysis.  Although the competitor's financial records are not a direct substitute for their own company's information, the student can analyze the competitor to gain insights about the financial health of their company's industry.
    2. SWOT Analysis: conduct a SWOT analysis identifying Leverages and Problems.
    3. Identification of Central Problem (Central Issue to Solve)
      1. What is the central problem (central issue to solve) based on the students' review and SWOT analysis of this organization?
      2. This section will narrow the students' focus by identifying the key issues, discussing how they specifically relate to the problem and will guide the student's selection of the key focus areas to research to arrive at a viable solution.

Verified Expert

Reference no: EM13669836

Sunk costs concept associated with making capital investment

Define the sunk costs concept associated with making capital investment decisions. Discuss why this concept is important for the investor to factor into the decision-making pr

What best describes operating profit margin

What is the project net cash flow (OCF) for year 2 and what is the book value at the end of year 3 - What is the discounted payback for this project - Construct income stateme

Goggles foray into device makers

Review the Chapter 5 Case Study: "Goggle's Foray into 'Device Makers' in Its Search for the Next Big Thing" and the Chapter 6 Case Study: "Has Proctor & Gamble Fully Recovered

Raising new capital by using preferred stock

Test Developer, Inc. (TDI) is raising new capital by using preferred stock. Its investment bankers have estimated that if the company pays a dividend of $9 per share on the ne

What is the yield to maturity

Bluff Enterprises has $1,000 face value bonds outstanding. These bonds pay interest semiannually, mature in 6 years, and have a 7percent coupon. The current price is quoted

Number of stockouts for particular item

Management has not been pleased with the number of stockouts for a particular item. This item has 740 pounds of demand during the lead time and a standard deviation during the

What actions would this speculator take in forward market

On Jan 19th, the three-month forward rate for the Singaporean dollar (SGD) to New Zealand dollar (NZD) was SGD1.0260/NZD. At the same time, the spot rate was SGD 1.0180/NZD. A

What interest rate would the investment have to yield

Stanley Roper has $2,500 that he is looking to invest. His brother approached him with an investment opportunity that could give Patrick $4,700 in 4 years. What interest rate

Reviews

Write a Review

 
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd