Financial Analysis Assignment
Company: Nordstrom, Inc. (JWN)
Ratio Analysis for previous 3 years: 2014-2016
Industry: Retail/Retail Clothing/Department Store
Research paper - MAX 5 pages for BODY OF PAPER.
Use APA format with sources and cites.
Include the ratio spreadsheet in EXCEL and a source list along with the body of the paper.
Excel and Source List not part of the 5 max pages for body of paper.
INSTRUCTIONS FOR BODY OF PAPER:
Body of the paper - MAX 5 pages
1. Introduction to describe the company and the industry
2. Financial/Ratio Analysis
- Liquidity
-Activity
-Debt
-Profitability
-Market
After you calculate the ratios, look for the trends. Select those ratios that you feel are most important to tell the story of how your company has performed and will perform in the coming year. A minimum of two ratios per category of ratios is required.
Identify which ratios are moving significantly. The ratios which are moving are telling you the story of your company. Also, compare Nordstrom's ratios to the industry.
For each category use the ratios that you selected for that category to tell your story.
-Define each term, category name, ratio or acronym before you use it
-You may uncover trends. For example, the current ratio has increased after the 2008 credit crunch
-You may uncover changes which were caused by strategic management decisions in earlier periods
-Try to tie these trends into specific events or strategies such as a RIF, an acquisition, the introduction of a new product line or a regulatory action (Affordable Healthcare Act).
If there are no comments to be made in a particular section, tell me that and move on!
3. SWOT Analysis
- Strengths
- Weaknesses
- Opportunities and
- Threats
-Yearly comparisons
- Comparison to peer groups or your major competitor
4. Conclusion
INSTRUCTIONS FOR EXCEL SPREADSHEET:
Research your company's financials using as a directional guide the key ratios. Please use the last 3 years of actual data, 2014-2016.
Calculate all of the ratios from each category below. These will be completed in excel and the data will be embedded in the cell.
Categories for Ratio Analysis:
- Liquidity
-Activity
-Debt
-Profitability
-Market
In any industry, there are industry specific ratios which are critical to evaluating the company. In a hospital system or hotel chain, the occupancy ratio is important. In a financial institution, they have special capital ratios which they track. Include these ratios.