WORKING CAPITAL MANAGEMENT PROJECT AND REPORT:
Each student is required to perform a research on the Working Capital Management issues of a publicly traded company based on its financial statements. The analysis of the short-term financial issues will be based on the topics discussed in chapters throughout the textbook. The company to be analyzed must be listed on the Mergent Online Database.
All calculations for the project should be done in excel and all excel outputs have to be submitted along with the project for evaluation.
In writing, submit the name of the company (publicly traded) within the first three weeks of classes for approval.
The students are expected to provide an analysis of the company based on the ratios and accounting measures discussed in chapter 18
- Net working capital, current ratio, quick ratio, cash flow to total debt, day's inventory, day's receivables, day's payables, cash conversion cycle, cash turnover ratio, total asset turnover, fixed asset turnover, current asset turnover, working capital turnover, times interest earned, long-term debt to total capital, debt to tangible net worth, total liabilities to total asset, long-term debt to total capital, equity ratio, gross profit margin, operating profit margin, net profit margin, EBITDA margin, return on common equity, return on total assets, return on sales, cash profit margin, cash conversion efficiency, return on investment, residual income, free cash flow, economic value added.
The students are expected to analyze the financial plan and cost behavior of the company and measure its performance based on the topics discussed in chapter 19
The students are expected to analyze the cost of capital, capital structure, and dividend policy of the company based on the topics discussed in chapter 20
The students are expected to analyze the following areas of the company performance based on the topics discussed in chapters 8-10
- Working capital investment and short-term credit
- Inventory and accounts receivables management
- Credit and accounts payable management
- Payment methods practiced by the company
- Accounts Receivable Monitoring and Control
- Cash positioning and cash management system of the company
- Disbursements and Collections
- Liquidity Management
The following format should be used to prepare the report:
1) Cover page
2) Abstract
3) Introduction
4) Company Analysis
5) Working Capital Analysis
6) Conclusion
7) Bibliography
8) Appendix (if any)
Length: 20-25 pages excluding charts and graphs.
Attachment:- Assignment File and Sample papers.rar