Financial Analysis Project
Part 1 (Provide at least one slide for each part with at least 8 bullets per slide)
1) Research and describe the company’s primary business activities (Make
sure you pick a company that shows 4 Annual Financial Statements – you
will need it for Part 3, Part 4, Part 5 & Part 6);
2) Provide information regarding the company’s history;
3) Provide information regarding the company’s position within their industry;
4) Provide information regarding the company’s competition;
5) Provide information regarding the company’s recent developments, and
future direction.
6) Use your own words to respond to the questions above.
Summarized News Items
Part 2 (Provide at least one slide for each part and at least 8 bullets per
slide)
Summarize in your own words at least two significant news items from
recent articles or reports about company.
Use the library’s academic databases to search for news about the
company.
Cite quoted and paraphrased material appropriately
Your responses must be SUBSTANTIVE, RELEVANT and COHERENT
SENTENCES.
Income Statement Analysis
Part 3 (Provide at least one slide for each part and at least 8 bullets per slide)
Analyze the company’s last four annual income statements. Pay special
attention to the total expenses and the net income (loss).
Use the last 4 ANNUAL Income statement or Profit and Loss Statements.
Identify trends, concerns, and opportunities.
At the broadest level, the income statement reports for a specific, discrete
period of time (typically a year or a quarter) Readers of the income
statement are also looking for hints about the company’s future
performance.
Cash Flow Statement Analysis
Part 4 (Provide at least one slide for each part and at least 8 bullets per slide)
Analyze the company’s last four annual cash flow statements.
Identify trends
Identify concerns, and
Identify opportunities.
Pay special attention to the highest cash inflow and cash outflow.
Balance Sheet Analysis
Part 5 (Provide at least one slide for each part and at least 8 bullets per slide)
Analyze the company’s last four annual balance sheets.
Identify trends
Identify concerns
Identify opportunities.
Pay special attention to increases and decreases in the current asset
accounts (cash, A/R, inventories, etc.) and long-term assets (buildings,
equipment, etc.)
Stockholders’ Equity Analysis
Part 6 (Provide at least one slide for each part and at least 8 bullets per slide)
Analyze the company’s last four statements of stockholders’ equity.
Identify trends
Identify concerns
Identify opportunities.
Pay special attention to retained earnings increase or decrease, dividends, etc.
Ratio Analysis
Part 7 (Provide at least one slide for each part and at least 8 bullets per slide)
Identify the following ratios for the company: current, quick, gross profit
margin, price/earnings, debt-to-equity, return on assets, and return on
equity. Pick at least two ratios. Show the amount that you use to calculate
the ratios.
What does each ratio tell you about this firm’s current financial position?
Recommendations and Justification
Part 8 (Provide at least one slide for each part and at least 8 bullets per slide)
Explain why you would or would not recommend an investment in this
company.
Justify your recommendations based on the financial analysis and research
you conducted regarding this firm.
References
Three or More Sources in APA or MLA format [Incorporate research to
strengthen your analysis.
