Evaluation of Corporate Performance The Final Paper will involve applying the concepts learned in class to an analysis of a company using data from its annual report.
Using the concepts from this course, you will analyze the strengths and weaknesses of the company and write a report either recommending or not recommending the purchase of the company stock.
Research Tip: The Mergent database in the Ashford University Library contains company profiles and financial information for publicly traded companies and their competitors. To access this database enter the Ashford Library and select Find Articles and More in the top menu panel. Next, select Databases A-Z and go to section M for Mergent. For help with using Mergent, use Mergent Online Quick Tips.
For help with reading annual report access this handy guide (Links to an external site.)Links to an external site. from Money Chimp.
The completed report should include:
An introduction to the company, including background information.
A complete and thorough financial statement review.
Pro Forma financial statements (Balance Sheet and Income Statement) for the next fiscal year, assuming a 10 percent growth rate in sales and Cost of Goods Sold (COGS) for the next year.
Complete ratio analysis for the last fiscal year using at least two ratios from each of the following categories:
Liquidity
Financial leverage
Asset management
Profitability
Market value
Debt
Per-Share
Measures of relative value (P/E, P/B)
Activity
Cash Flow
A calculation of Return on Equity (ROE) using the DuPont system.
Assessment of management performance by calculating Economic Value Added (EVA).
A synopsis of your findings, including your recommendations and rationale for whether or not to purchase stock from this company.
Evaluate the financial risks associated with operating internationally. If your chosen company does not operate internationally, evaluate what the financial risks could be if they were to expand internationally.
