Let me know the company name and stock market registration
I will prefer a company in the medical field. I Need to secure an Approval first for the chosen company
Please note that minimum of 6000 words is required for this assigment. Please confirm also that this is plagiarism free
Also, the main organization and the competition company should be in the same trade practise, similar products, services and should be listed in the recognized stock exchange.
The company should be in healthcare /pharmaceutical industry.
Accounting and Finance
Choose a Company that you have been working for or admiring or wanting to conduct a Financial Performance and Analysis
Discuss the Company and provide a relevant background
Ratio Analysis on the Chosen Company with Interpretation considering Macro Economic and Macro Business Environment
Ratio Analysis and Interpretation to be conducted on the chosen company along with the Competitor Company which is in the same trade, segment for a period of either 3 consecutive years or alternative years.
The chosen company now wishes to invest 10% of its Net Assets towards purchase of Land and Building . This has to constructively argued given the various Internal and External Sources of Funds before zeroing down on a choice or a single source of funding
Selection of Funding , followed by summary and conclusions
Step 1 - Identify an organization which is either a Domestic, International , Multinational Player or a Conglomerate listed on a recognized Stock Exchange.
Identify a competitor company within the same trade, practice , domain which has a similar size and reach.
Marks required to pass this coursework:
While choosing a Company remember Parent and Subsidiary Companies are not allowed to be compared as it will not achieve the said purpose
For example, the Walt Disney Corporation owns about a 40% stake in the History Channel, an 80% stake in ESPN and a 100% interest in the Disney Channel.
In this case, the History Channel is an affiliate company while ESPN is a subsidiary and the Disney Channel is a wholly owned subsidiary company.
Selection of Sources of Funds
This is the second stage of the Assignment task and therefore post establishing a Exective Summary , having studied the Company Profile in terms of its Business, Products, Services, Credit Ratings, Past Performances, Future Opportunities, Research and Development Capabilities, Expansion Plans, Exit Strategies etc. you would have calculated all the Financial Ratios and the interpretation would provide you an insight on the organization and the industry per se.
There are essentially various Internal and External Sources of Fund's that would remain available for any organization in order to make decisions on purchase of any Assets.
Question to be asked and debated in this segment is , depending on the performance and analysis drawn given the economic conditions and business condition that the company was up against in the market place and after having gained a full understanding of the competition company's performance, will the chosen company have the necessary support and buy in and backing from its stakeholders, investors and market analysts.
This segment would see you using the ratios calculated to argue and therefore defend the chosen company's requirement to avail 10% of its Net Assets to purchase of Land and Building , where in the organizations Liquidity, Receivables Management Capabilities, Debt/ Equity Ratios and ability to service Interest Expenses will be rationally debated to arrive at either a combination of Internal / External Source of Funds or just one source of Fund which could be best answer for the organization.
Also the impact of such borrowing on the overall Share Price in the market place through changes in EPS if any can be highlighted.
Financial Analysis - Chosen Company Vs Competitor Vs Industry Benchmarks.
Since you would reach this stage only post carrying out a detailed research and gained a detailed understanding on why the chosen company could not deliver its performance , you may want to justify by the corrective measures adopted to address the profitability of the said organization by addressing the New Initiatives which could be forward looking statements :- (a)New Product Line / Service, (b) Invesments in R & D, {c} Expanding to Newer Geographies etc..
To Calculate the Financial Ratios , Income Statements and Balance Sheets of the Chosen and Competition Company would be required for the same set of years to apply the relevant formulas and draw an analysis.
Conclusion and Summary
This segment will demonstrate your understand having compared both the organizations .
The segment will illustrate if company is safe and highly efficient in their manufacturing, operation and performance.
The steps considered by the chosen organization and your opinion on how this has turned around performances for the chosen company given the tough competitive and market conditions.
How does the future opportunities look from the CEO's perspective .
What would it take for the chosen organization to therefore aim to be part of the Top 200 or Top 500 companies globally and the changes which would need to be driven across the board can be mentioned as part of recommendations.
So as a first step :- You can all start picking companies for this assignment, as a main organization , followed by a competition company within the same trade practice, segment, similar products and services, same Industry and remember that the chosen company and its competitor firm should be listed on a recognized stock exchange.
Suggest to each one of you the moment you finalize your choice, should have the same ratified from my end so that no 2 students end up choosing the same set of companies and competition companies.
In case you are unable to find a Competitor Company for your Chosen Organization, it's got to be Benchmarked against Industry Ratios for interpretation purposes
Avoid Parent / Subsidiary Companies , Parent / Associate Companies also Avoid Companies forming part of the same group !!
1. Step 1 :- Start reading up Annual Reports for the chosen company and the competition from 2010 to 2015 as a step 1 .
2. While it would help you understand and evaluate the challenges and opportunities that the Industry of the chosen company faces both in the market it operates and given the economics and macro business considerations.
3. Should help you understand whether clocking profits was a challenge along with maintaining costs to derive the required Revenue Performance, Management Outlook, Future Opportunities that holds for the chosen segment , Industry and the availability of cutting edge technologies which would therefore become a "game changer" for the chosen company vis -a - vis competition across the markets and geographies that it operates.
New Process, Products , Initiatives on the Anvil should set up the Tone along with Performance thus far for building your Executive Summary, Introduction and Company Profile of the Chosen along with the Competition Company and a detailed overview of the Industry Analysis.
Step 2 :- To download the Income Statement and Balance Sheet along with Cash Flow Statements for the chosen company and the Competition Organization for the years under study .
The following Top 7 Ratios would need to calculated, interpreted and analyzed :-
Return on Capital Employed {ROCE}, Operating Profit Margin{OPM Ratio}, Asset Turnover Ratio, Current Ratio, Gearing Ratio - Du Pont Analysis, Interest Cover Ratios, EPS Ratio and P/E Ratio
This apart each Organization / Chosen Segment would have Industry Specific Ratios those which defines and adds more weight to the overall interpretation should also be included on a best effort basis.
Here each one of you would be required to research for Industry Benchmark for the chosen company and competition company across each ratios that will remain to be calculated and interpreted ..
STEP 3 :- is to discuss and debate all the possible sources of funds - Internal v/s External that an organization can access in order to fulfill its need to meet the hypothetical condition of investing 10% of their Net Assets in Land & Building and this is where all the Ratios so calculated and interpreted shall be used in arriving, arguing and defending the Chosen Organization's position.
While in the final analysis you would need to drill down to a Single source of Fund or a combination if you strongly feel so based on how your understanding develops for the said organization, the economic conditions, ability to borrow and repay, position of the Company Shares in the Stock Market and its Earnings Capacity both as EPS and P/e indicators.
Future Road Map for the Chosen Company can get presented based on how much information you gain access to :- so for instance - 2015 - 2020 Road Map can be presented if you feel that can add more teeth to your work.
STEP 4 :- Summary and Conclusion :- This is the most important part of the assignment where we will tie up all the areas of our Executive Summary , Ratio Investigated, Interpretation and Analysis therefrom while we present the organization's current challenges, future investments, opportunities that are on the anvil
Attachment:- Companies for Accounting and Finance.xlsx