Problem
Select a company for which you can analyze their financial statements. Imagine you have been asked to prepare a brief management report summarizing the financial position and future prospects for the company chosen. Write a one-page memo summarizing your findings and making a recommendation as to whether an investment in the company is warranted. Be creative and use critical thinking skills.
Include:
1) Comment on EPS performance
2) Analyze financial position of company
3) Analysis of capital structure
4) What is the short-term and long-term strategy of the company? Is there adequate planning and resources for their plans?
5) Evaluate the company's overall value
Other possible suggestions:
1) Are they positioned for long-term growth as well as short-term opportunities?
2) Comment on dividend policy
3) What is the current debt status?
4) Analyze the company's cash flows
5) Evaluate profitability relative to sales, assets, equity and share value
6) Assess liquidity / risk
7) Analyze inventory management.