OBJECTIVE You are to assume you have been recently hired by The Company and have been assigned to a team that reports to the CEO of THE COMPANY (SELECTED BY INSTRUCTOR). The head of your team is the CFO who is concerned about THE COMPANY’s current financial performance and comparison against major competitors in the industry and the impact that may have on the firm’s stock price. The CFO would like your team to provide insights that will help them to project future financial performance. Specifically, the primary question to answer is: will THE COMPANY be financially viable over the next two to three years, and which steps should be done to improve its financial stability? THE COMPANY that is to be analyzed for this project is to be a company selected by instructor. Alternatively, you can request approval of another publicly traded company. This request must be submitted before the end of the first week of the course. The request must include SUGGESTED WEBSITES www.morningstar.com – To find the information for your company you need to type the stock symbol in the window to get into the company’s page. www.marketwatch.com -To find the information for your company you need to type the stock symbol in the window to get into the company’s page. www.Finviz.com – To find the information for your company you need click on Screener on the top of the screen, type the stock symbol in the window to get into the company’s page., and click on the company in the list. www.money.cnn.com -To find the information for your company you need to type the stock symbol in the window to get into the company’s page. www.finance.yahoo.com – To find the information for your company you need to type the stock symbol in the window to get into the company’s page. www.nyse.com – Click on Data, then click on Stocks (under Quotes), and type the name of the company or the stock symbol in the window “Keyword or symbol” to get into the company’s page. www.nasdaq.com – To find the information for your company you need to type the stock symbol in the window to get into the company’s page. Company’s websites Using the information from the websites the students will develop evaluation of the financial performance for THE COMPANY (SELECTED BY INSTRUCTOR). (The evaluation portion will total 85% of the assignment grade) -1—Background and Industry (one paragraph). -2— You can find the common size financial statements for the company for the last 3-5 years on www.morningstar.com.Type the stock symbol in the window to get into the company’s page. Scroll down and click on All Financial Data. Switch View from “$” to “%”. Create a table that contains common size fina
ncial performance results THE COMPANY and for the last year for the major competitor. Present the table with this information in your report. Write about 1-2 pages of the analysis of the financial conditions, its stability, and trends. -3— Analyze the financial trends over 5 years of Revenue, net income, and any other of financial performance results of your choice. To present your findings, you will use the table(s) and/or graphs. You can use the bar graphs provided by www.morningstar.com. Or create your own ones. Write about 1-2 pages of the report of the results that you received. What important information does this analysis provide? In this part of the project you will complete ratio analysis of THE COMPANY. Please remember that you are the financial analyst of THE COMPANY and should prepare the report to be read by the chairman (CEO) of THE COMPANY. The ratio analysis should be completed from the point of view of THE COMPANY’s the management. The chairman of THE COMPANY is especially concerned about the following groups of ratios: You can find financial ratios for the company for the last 3-5 years in the Internet or calculate them. If you use published ratios you must indicate that and cite their source. a) Present the ratios as the table(s) in your project. Create graphs for some ratios on your choice over three years to show trends. b) Write 2 pages (or more) of analysis of the ratio results that you found. In your analysis you should answer the following questions: -5- . Write about 1 page of analysis to answer the questions (c) and (d). – , as to whether the assigned company’s recent trends and results in financial performance is of sufficient financial strength, will THE COMPANY be financially sustainable over the next two to three years, and which steps should be done to improve its financial stability? (about 1 page) ( -7- – the student should write a paragraph in their own words reflecting on specifically what they learned from the assignment and how they think they could apply what they learned in the workplace. (5% of the project grade) -Organization, Format and Presentation of Paper including the Title page, Introduction, Body, and Summary. Each section of the paper must begin with sub-headings. Please use the sub-headings included in the assignment (4% of the project grade) Use of Tables, Figures and Other Graphics to Summarize and Support Analysis Presented in the Paper (3% of the project grade) Logical and Smooth Flowing Transitions and Relationships among Sections of the Written Report (3% of the project grade) Research Sources and Significance of Research Information and Data, Use of APA Citation Methodology (5% of the project grade)