Case Study Instruction -
The following articulates the overall basic procedure and presentation details for all three cases for the semester; each case will be laid out the same way.
PURPOSE - The purpose behind these studies is: (1) help you develop a strong awareness of the financial structure of depository financial institutions, insurance companies, and investment banks and investment companies, respectively; (2) further your financial analysis skills; and (3) broaden your understanding of the risks and strengths inherent in the important financial institutions in the United States.
PROCEDURE - There will be a total of three case studies, assigned separately, to wit - a randomly assigned bank, insurance company, and investment company. It is your task to analyze the financial structure of each company provided. Analysis consists of both narrative and Excel analysis. When submitted, it should contain, as a minimum, the following:
Contents -
Identifying Data - This is a cover page NOTE: AUTOMTIC "C' FOR PAPERS THAT DON'T USE $ SIGN AS VALUE UNIT (EXCEPT, OBVIOUSLY, RATIOS, WHICH ARE % DESIGNATED. THE "C" WILL BE THE HIGHEST YOU CAN GET: ADDITIONAL MARKDOWNS ARE POSSIBLE.
Narrative -
- A brief summary of your data analysis findings, bullet format permitted UNLESS YOU FEEL A MORE DETAILED NARRATIVE IS NECESSARY.
- AN ANALYSIS OF THE FINANCIAL STRUCTURE OF THE FIRM AND HOW THE FINANCIAL STRUCTURE RELATES TO THE FIRMS PRIMARY BUSINESS. This section may employ comparative, general financial institution data and would be best NOT in bullet format. Please feel free to check any sources necessary to make your points clearly and concisely.
Excel Spreadsheet - 2 years of data to be obtained from SEC/Edgar and/or the company website since these are the primary sources for financial data. In other words, don't necessarily trust Yahoo! Finance or MSN Money.
Calculate the firm's:
- ROE and ROA
- Profit Margin (net income/total operating income), Tax rate.
- Asset and Liabilities Structure - you must download and analyze the firm's income statements, balance sheets, and statements of cash flow (aka: sources and uses of funds statements).
- Calculate the firm's free cash flow.
- Calculate the firm's Price/Book Ratio, Sales/Book Ratio and Sales/Price Ratio.
- For Investment Banks: Proportion of Investment Assets to Total Assets
- For mutual fund companies: Proportion of Investment Assets to Total Assets
- For exchanges: Proportion of intangible assets to total assets.
You are free to use other ratios and analysis techniques (i.e., DuPont Analysis) but only if you feel they are important in making a point in either your analysis or conclusions. Don't add them just to impress me; I won't be impressed.
Maximum narrative length: 5 pages plus cover page and Excel file.
Attachment:- Assignment Files.rar