Assignment Instructions/ Description
Instructions: Company Analysis Project: Students will be assigned teams. The team is now the new senior management of the company team selects. Select a publicly traded business that utilizes inventory. Download a copy of the two most recent annual reports and 10K reports from the investor relations page of the company’s website or through SEC.gov. This reference material must be submitted with the final report as an appendix or attachment.
Section One: Company Overview 1. Present a brief history of the company.2. Provide a strategic initiative the company is pursuing based on information in the annual report, 10K, or news articles. 3. Determine one major competitor and two minor competitors in the industry. Describe rationale for the selections. =Microsoft, Google, & Samsung
Section Two: Current Financial Status Excel sheet is in google excel for info.1. Compute ratios on an Excel spreadsheet for all four companies using the Balance Sheet and Income Statements found in the company 10k. Compute ratios for the three most current years available for your company and most recent year only for the competitors. ** Do not just access ratios from the Internet** 2. Average the ratios of the most current year for the four companies computed in part 1 above to create an industry average. 3. By ratio classification, describe any trends you observe in the last three years in your company. 4. Compare your company’s individual ratios with those of the industry. Describe areas of superiority and inferiority and possible causes and remedies for the inferiority. (PAOLO WILL DO ALL SECTION 2)Basically break down the sections we each talked about in the presentation. Liquidity-Asset Management-Debt Management-Profitability Ratios- Market Value
Section Three: Policy Analysis 1. State and evaluate the company’s present dividend policy. Provide a recommendation, with rationale, to continue current policy or propose new policy. 2. Compute the current weighted average cost of capital for your firm. 3. State and evaluate the company’s present capital structure. Provide a recommendation, with rationale, to continue current structure or propose new structure.
Section Four: Conclusion Close paper describing how prepared your company is to move forward with the strategic initiative determined above based on current financial situation.
Appendix: Copies of each competitor’s Balance Sheet and Income Statement. Supporting material: 1. PDF of primary company’s 10k uploaded to course companion website as attachment. 2. Excel spreadsheet with detail of ratio analysis uploaded to course companion website.
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