Evaluate financial report and analysis, Financial Management

Project Specifications

Complete an individual Financial Report and Analysis. You will select a company that you would like to analyze based on the parameters provided by the professor below.

Analysis Parameters:

Company Size: The enterprise should be listed on either the NASDAQ, S&P 500, or Dow Jones which will provide a more rich base of firms to chose from and provide a great deal of detail for the analysis.

  • Provide your company's historical background. Summarize the nature of its operations, sales, and earnings growth rates, and key financial information such as the exchange in which its stock trades as well as capital structure (equity vs. debt).
  • Summarize in a narrative the latest Trends in their Income Statement and Stock Price.

NOTE: These two will be due in Week 4 for instructor feedback and comments (non-graded).

Using the latest Annual Cash Flow Statements for your company analyze the following financial reporting areas for your company in the two most recent years:

  • Operating Cash Flows: Analyze their degree of health or strength and how they compare to net income.
  • Investment Cash Flows: Is the firm employing its funds wisely on asset acquisitions, selling off assets, etc.?
  • Financing Cash Flows: Where and how is the firm raising its funds to support its strategic objectives or paying off debt, etc.?
  • Overall Analysis of the Cash Flow Statement: In your opinion is the firm doing a solid managerial job of its sources and uses of funds?

Using the latest Income and Balance Sheet Statements for your company, analyze the following financial reporting areas for your company in the two most recent years:

  • Sales and Accounts Receivable: Analyze the degree of growth or strength in their relationship and how if they appear to "be in balance". Please comment on any abnormal or interesting issues you may uncover.
  • Sales and Inventories: Is the firm's level of inventory in balance with their sales growth and strategy? Again, please note any peculiar anomalies that may be of interest or suspect.
  • Quality of Earnings: Examine the firm's earnings and comment on their general health and likelihood that they are "repeatable" and long-term in nature.
  • Do a short analysis and prepare select comments on the following major ratios:
  • Short-Term Solvency: Current Ratio, Days Sales Outstanding, Inventory Turnover, and Days Accounts Payable Outstanding.
  • Long-Term Solvency: Interest Coverage, Operating Cash Flow to Total Liabilities.
  • Lastly, complete an analysis of Return on Equity and the "degree" of Financial Leverage the firm currently has and does it support its business strategy?
Posted Date: 2/16/2013 1:14:55 AM | Location : United States

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