Analysis of capitalization, Financial Management

You must analyze how the company is financed through equity and debt financing. You will discuss the level of leverage and how it compares to similar companies in the Industry.

• You will use ratio analysis and primarily the Capital Structure ratios. You will use a graph for each ratio to present the projected trends and provide intelligent discussion of what you observe. Stating they are going up or down and "this could be a problem" is not adequate. You should determine if the change(s) in the trend is significant and, if so, what could this mean? You should reference specific changes on the Balance Sheet, Income Statement and Cash Flow Statement to support your discussion. You can also use other details provide in the company's 10-K and Annual Report.

• After you have completed each ratio analysis ask yourself, "does this say anything important that is not obvious to the casual observer?" Always keep in mind that this is going to be used to make an important investment decision and should be at a high, informative level.

• Each ratio should have it's own graph and one benchmark ratio. Use the following ratios as a minimum:

a. Long-term Debt to Total Capitalization

b. Time Interest Earned

c. Total Debt to Total Assets

Posted Date: 3/19/2013 2:52:37 AM | Location : United States







Related Discussions:- Analysis of capitalization, Assignment Help, Ask Question on Analysis of capitalization, Get Answer, Expert's Help, Analysis of capitalization Discussions

Write discussion on Analysis of capitalization
Your posts are moderated
Related Questions
Explain why accounting profits and cash flows are not the same thing. Stock worth depends on future cash flows, their riskiness and their timing.  Profit calculations don't con

Accounting Principle Accounting principles are the primary assumptions, rules of operation, and necessary features that make up the framework for the construction of accountin

Required Rate of Return (R i )  The required rate of return (Ri) is the minimum rate of return that a project must generate if it has to receive funds.  It’s thus the opportun


a) Cultural exports are the commercial transfer of values and ideas from one country to another. Canned crab meat is a popular local fragility in Thailand and Viya Crab Products Co

Stock Exchange of Hong Kong Securities trading in Hong Kong started in 1866; however, the first formal stock market, the Association of Stockbrokers in Hong Kong, was establish

You are presented with the budgeted data shown below for the period November 20X1 to June 20X2 by your firm. It has been extracted from the other functional budgets that have been

Corrective Action: Once budget figures are compared with those actually achieved, and a variance analysis carried out, management can then take steps to correct any problems id

Limitations of participation: 1. Technology and organization today are so complex that specialized work roles are required making it difficult for people to participate succes

Types of asset-backed securities 1.  Auto Loan-Backed Securities (ALBs) 2.  Credit Card Receivab