Assignment:
Signature Assignment:
Finance Assessment - Part A: Financial Statement Analysis
Select the most recent financial set of financial statements for a popular company of your choice.
Here is the scenario for your project:
You are the newly appointed treasurer and your partner is the newly appointed controller of your company. In order to learn more about your company, you have decided to analyze the company's financial performance over the last 2 years. To do this, you have decided to calculate the following ratios for the company's 2 most recent years in the noted categories:.
1. Profitability Ratios
a. Gross Margin Percentage
b. EBIT Margin Percentage
2. Resource Management Ratios:
a. Age of Inventory
b. Age of Accounts Receivable
c. Age of Accounts Payable
3. Liquidity Ratio:
a. Current Ratio
4. Leverage Ratios
a. Debt-to-Assets Ratio
b. Debt-to-Equity Ratio
c. Interest Coverage
In addition, you have decided to evaluate the Return on Equity (ROE) of the company by calculating the DuPont Ratio, including the Profit Margin, Asset Turnover, and Financial Leverage Ratios.
Required
1.As a member of a team, you will produce a 5-7-page paper that will show your calculations of each of these ratios for the company's 2 most recent years. In addition, you will provide a brief analysis of each of the ratios. You will also provide a brief evaluation regarding the company's performance as it relates to the four categories listed above, plus the DuPont Equation. Finally, you will discuss how these ratios will help you make appropriate financial decisions as they relate to your role as a financial manager, and also assist in achieving the firm's financial management goals.
2. In addition, your team will also produce a PowerPoint presentation using that discusses the analysis of at least one ratio from the each of the four categories above. In addition, you must also discuss your DuPont Equation results. Finally, you must discuss how these ratios can be used to help you make appropriate decisions in your role as a treasurer or controller. All team member must be involved in the narration of the presentations.
As this is a collaborative project, an online collaboration tool (such as Big Blue Button or Cisco Spark) must be used to conduct your team meetings. Evidence must be provided that the tool was used for three weekly team meetings.
As with all papers and projects, APA standards are to be followed for all portions of this paper, including but not limited to proper referencing and citations.
Given the strategic, tactical, and operational goals of a corporation, evaluate the role of the financial manager in achieving those goals.
Examine and assess the various tasks and responsibilities that financial managers face, and assess how the financial manager interacts with other functional areas of business.
Compare and contrast the various forms of business organizations, and how they affect the financial manager's ability to meet a firm's goals.
Analyze how the financial manager oversees and coordinates the financial management framework to help achieve the company's goals.
Evaluate a firm's financial performance by calculating and interpreting its return on equity, profitability measures, resource management measures, liquidity measures, and leverage measures.
Given financial information about an organization's cash flow requirements, analyze the monetary value over time.
Calculate the future value of a single payment.
Calculate the present value of a single future payment.
Calculate the future value of a stream of equal periodic payments.
Calculate the present value of a stream of equal periodic payments.
Assessment demonstrates an effective understanding of the financial manager's role; financial ratios and time value of money principles.
Student team prepares a cohesive presentation that includes at least one ratio from each category and the DuPont Equation. In addition, the verbal analysis is accurate and concise.
All team members participate in the recording
The student is able to properly calculate all components of the DuPont analysis and properly calculate the ROE figure. In addition, the student provides in-depth analysis of the DuPont results for the 2 years combined.
The student also selects appropriate ratios to measure the firm's liquidity, profitability, and asset turnover. The student also properly calculates each ratio and provides in-depth analysis of the results, and provides good insights about how the financial manager can use the results to make decisions.