Financial Analysis Assignment
Following are a series of questions designed to assess your ability to apply some of the financial management techniques we’ve covered over the semester. You may use any resources you see fit (including our text, other reference books, your classmates, me, etc. ) to gain insight into the assignment. However, your answers should not be the same as your classmates. If you work with others to complete this assignment, each Individual should use a deferent company. Be sure to answer all portions of each question.
Specific explanations and Justifications of the “Why…? ” portions of each question are necessary to earn full credit. Your responses should be as complete and succinct as possible. Feel free to make references to any of the relevant material we’ve already covered in class. To complete this assignment, you will need three years of financial statements from one PART related organization. These may be the financial that you submitted earlier in the semester or other ones that you now deem more interesting. Make sure that you have income statements and the balance sheets from no older than 2009.
Annual reports will have the most detail. Online sources (Google Finance, Yahoo, company websites) may not provide much detail on sales and other items. 1 . For the financial you choose, please complete these ratios for each of the last three years. Current Ratio Debt to Net Worth (also known as Debt to Equity) Debt Ratio Average Collection Period Return on Assets Return on Net Worth (also known as Return on Equity) Submit copies of the financial statements you’ve used, with the numbers you used In the ratios HIGHLIGHTED. Part of the assignment Is choosing the right numbers with which to work. 40 points). 2. Select a visual format (graph, chart, etc. ) to best represent the findings from your ratio analysis as well as any other pertinent financial information you gather about this organization (information about revenues, expenditures, capital campaigns, sales, etc. Create a visual summary of each/all of your findings. Consider bar charts, line charts, peel charts, tables, etc. These charts and graphs should visually convey trends and financial performance. Your annual reports may provide some ideas of how companies present data in a visual way.
There is no “right” answer but be sure that your visual representations help summarize your findings in a way that is easy to understand. (20 points) 3. Imagine that you are the decision-maker for the organization. Summarize your information you have gathered) in a memo. Is your condition improving or deteriorating? Give me three specific reasons why you know this. Identify any internal or external conditions that you think may be having an impact on your organization’s financial condition. The memo should be no longer than 3 pages single spaced. (20 points) 4.
As part of the memo, create a one-year action plan for addressing the situation. Include at least five specific recommendations for rectifying or perpetuating your current state. Address at least 3 specific barriers this organization might face through this action plan. What outcomes might this organization expect after one year? (This should be in a professional format targeted to an internal audience. ) (10 points) 5. Document format and style (10 points). Some things to think about: Are the written portions of the document written concisely, effectively, and free of spelling/grammar errors?
Are the visual portions of the document clearly labeled and do they effectively communicate important financial trends? Are your recommendations appropriate, realistic, and, better yet, interesting and innovative? Do you provide evidence of critical thinking (I. E. , making connections between concepts, providing alternatives, using supporting evidence for all claims, etc. ) throughout the document? Overall, does the document reflex CT the quality of a professional memo?