MMG 520 Financial Accounting Team Project Assignment- Cambridge College
Overview
This project is a case study that requires you to obtain annual reports for two companies within the same industry and then analyze key trends, performance drivers, company and specific industry measures, and demonstrate competency in common financial ratios.
The project is comprised of a written presentation with supporting analytical analysis, presentation to the class, and an individual contribution briefing.
Project Outline
Each group must select two companies in the same industry.
Obtain the most recent annual report or Form 10-K for each of your two companies as approved by the Professor (details below). The reports should contain at least three years of income statement data and two years of balance sheet data.
For each company perform the following analysis:
There are several areas that you are required to analyze using a combination of ratio analysis, research, and trend analysis.
• Value Drivers: What is the company's growth rate? What is driving the growth? What is the trend into the future? What are the company's value drivers (revenue growth rate, operating margin, tax rate)? How does the company make money?
• Capital Structure: What is the capital structure of the company? What do they do with profits - how much is reinvested in the company or distributed back to shareholders?
• Profitability: Is the company profitable? What is driving profitability?
• Return on Assets/Capital: Does the company make efficient use of its assets? Calculate and explain differences between ROE, ROA, and ROIC.
• Industry Specific: What are some industry specific metrics that are presented in the 10K or annual report? What do they measure? How do they complement traditional financial ratios? Find company financial press briefings or related news that highlights the perspective from their company President or CFO what trends are impacting their business results.
Requirements:
• You must submit the financial statements, annual report or Form 10-K for each company being discussed with your final report.
• You must complete the standard set of financial ratios that can be found in the text.
Format your assignment according to the following formatting requirements:
1. The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also includes a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
3. Also include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.