The purpose of this assignment is to analyze the financial

0
(0)

The purpose of this assignment is to analyze the financial performance of a company to make recommendations to potential investors about the purchase of stock. Studying all aspects of a company’s financial statements is necessary in order to understand the financial performance and health of a company. This is particularly important for investors trying to determine whether to buy stock in the company.

An investor has approached you about whether purchasing stock in the company would be a wise investment. Using your financial analysis of one of the approved companies, you will send a letter to the investor summarizing your findings and explaining whether or not you recommend a stock purchase at this time. Refer to the “Annual Reports for Approved Companies,” located in the Class Resources. You will use information in the Form 10-K to complete this assignment. Using the correct formulas and a separate tab for each analysis, calculate the following ratios using Microsoft Excel:

  1. Three liquidity ratios for the past 2 years
  2. Three solvency ratios for the past 2 years
  3. Three profitability ratios for the past 2 years

In addition, use the list of approved companies within the same industry to conduct research about a competitor company. Using IBIS World or another applicable resource, locate three ratios for the competitor company. Compare your company to the competitor company and indicate the differences in the ratios for the two organizations. Next, locate the same three ratios for the industry. Compare your company to the industry average and discuss how well it is performing compared to the industry. Note: you are not required to calculate the ratios for this portion of the assignment, but proper citations are required for the ratios used in the comparison. Justify your analysis by explaining your findings.

Using your research findings and analysis of company performance in relation to industry competitors, construct a 500 word letter making stock purchase recommendations for a potential investor. In the letter, address the following, referencing specific ratios and comparative numbers as appropriate:

  1. Discuss the overall financial performance of your company in relation to the specific competitor.
  2. Discuss whether the company performed better or worse than the industry average, providing specific numbers and an explanation of what the numbers illustrate. For this portion of the memo, consider the 21 questions in Chapter 6 of the textbook to explain what the ratio results tell the user of the financial statements about the health of the company. Instead of providing calculations or showing numerical comparison(s), describe the performance of the company and use the ratio results to support your points.
  3. Recommend whether the potential investor should purchase stock in your company and justify your recommendation based upon your research and analysis of the company ratios and industry competition.

Submit the Excel file that contains your ratios and the Word file letter to the digital classroom.

Approve companies

  1. The Coca-Cola Co. (Ticker KO)
  2. PepsiCo (Ticker PEP)
  3. Home Depot (Ticker HD)
  4. Lowe’s (Ticker LOW)
  5. Gap, Inc. (Ticker GPS)
  6. Abercrombie and Fitch Co. (Ticker ANF)
  7. Ford Motor Co. (Ticker F)
  8. General Motors Co. (Ticker GM)
  9. Dunkin’ Brands, Inc. (Ticker DNKN)
  10. Starbucks Corp. (Ticker SBUX)

How useful was this post?

Click on a star to rate it!

Average rating 0 / 5. Vote count: 0

No votes so far! Be the first to rate this post.

Share This Post

Email
WhatsApp
Facebook
Twitter
LinkedIn
Pinterest
Reddit

Order a Similar Paper and get 15% Discount on your First Order

Related Questions

The information that is gathered every day in healthcare drives

0 (0) The information that is gathered every day in healthcare drives patient care and the improvement of the quality of care. Each staff member within a healthcare institution has a role in improving patient care. In this short paper, complete the following:  Chief of Medicine Managers: Identifies a

Create a nutritional care plan for your client.(old- malnutrition)

0 (0) Create a nutritional care plan for your client.(old- malnutrition) This will include an evaluation of nutritional risk, a list of interventions, and a list of expected outcomes. List the goals of medical nutrition therapy for your patient and suggest an appropriate diet. Does your patient/client require a dietary

Introduction Jones Carolyn Denise is 35 years an old female with

0 (0) Introduction       Jones Carolyn Denise is 35 years an old female with a height of 162.6cm ( 5’4”) and weight of 108kg ( 237 lb ) with a medical condition of acid reflex and Vitamin D deficiency. Mrs. Jones was admitted on February 7, 2023, with a diagnosis of

5 questions to answer separately! All relate to Implementing the ABCDE

0 (0) 5 questions to answer separately! All relate to Implementing the ABCDE Bundle to decrease hospital length of stay in a long-term acute care hospital. You may reference the three primary articles attached – must read them to use them   question 1 Describe the primary quantitative literature upon which

Scientific Study Analysis Prior to beginning work on this assignment,

0 (0) Scientific Study Analysis Prior to beginning work on this assignment, read the article The Relationship Between Multiple Forms of Discrimination, Neighborhood Characteristics, and Depression Among Illicit Drug Users in New York CityLinks to an external site. and address the following questions in a three to four page (excluding title and

How will you use the processes from ARDP 6-22 to improve the ABCT and

0 (0) What is the critical leadership problem facing the 4th ABCT? How will you use the processes from ARDP 6-22 to improve the ABCT and achieve your vision? Clearly and comprehensively explain, defend, and justify your answer. If something is not your original thought, you need to cite your

Early Childhood and Special Education Lesson Plan

0 (0) All materials needed for the lesson must be used or referred to during the PPT presentation including anchor charts, visual supports and manipulatives needed for the presentation. So please take a picture of materials yo used, and also make anchor charts… What you need to do is a

Research the differences in conducting business in the Dominican

0 (0) Research the differences in conducting business in the Dominican Republic as compared to the United States. Consider culture, customs, predominate religions, type of government, natural resources, infrastructure, modes of shipping, stability of economy, currency used internationally, trade relationships/agreements with the United States, living/working conditions, restrictions placed on foreign

Brand Assessment & Shopping Research Paper

0 (0) At the beginning of the assignment due class session, submit a summary of your research compared to your experience in physically visiting and shopping in a retail business. Discuss the business’s strengths and weaknesses in the branding factors you have learned in this course-to-date (class lectures and reading

Nonverbal Research Paper

0 (0) General Instructions Conduct a participant observation of nonverbal communication during a structured period of time (e.g., sitting at a café, during a sports event, while at work, at the gym, etc.). Take field notes throughout the course of your observation. Spend time looking through your field notes and

Marketing – Search Engine Optimization (Footer Writing)

0 (0) Write a Footer for 5 different web pages. Each footer should be approximately 330 words. The footer should briefly describe the Brand and what type of products the brand is selling, and how those products can benefit the customer. There is no specific paper format. Make sure that

a firm/company/store, identifying its product or service, and

0 (0) The project consists of selecting a firm/company/store, identifying its product or service, and analyzing its current market environment. This includes identifying competitors, analyzing nature of the product or service, and examining ease of entry into or exit from the market. It involves examining the market demand and supply,

WNEU ME 322 Spring 2019 Take‐Home Project

0 (0) Find 2 manufacturers within 25 miles of your home town or the town you would like to live in after graduation.  For each manufacturer, gather and compare the following information (as much as is available publicly, or with a little digging – a polite email and/or phone call and/or

Accounting for the iPhone at Apple Inc

0 (0) Please answer 3 case Questions: 1. Compared to the typical point-of-sale accounting method, what are likely effects on income statement, balance sheet, and statement of cash flow of Apple’s choice to use a subscription method for revenue recognition for its iPhone? Also discuss advantages and disadvantages of subscription

IBM Financial Reporting and Analysis

0 (0) Please answer the 19 questions listed below. The questions below are based on the 2017 financial statements of IBM which I provided as a pdf. (Page number references below refer to document page numbers, not .pdf page numbers.) Please only use the financial statements provided to answer the

Proving the Existence of the Traditional Judeo-Christian God

0 (0) You must write about the following 6 items below and defend your thesis. You must explain them all in detail in section 2 of your paper and then critically discuss each of them in section 3 using separate paragraphs. Use paragraphs — at least one for each idea.

Analysis and Presentation of Data

0 (0) Resources: Ch. 15, 16, & 17 of Business Research Methods (all chapters will be attached). Review question four in the “Discussion Questions” of Chapter 15; review question 4 in the “Discussion Questions” of Chapter 16; and review question 10 in the “Discussion Questions” of Chapter 17 of Business

Social and Professional Issues in Computing

0 (0) Select five from the following seven vocations. Which ones do you believe are a true “profession”? Briefly defend your position for each one with facts and references to definitions of a profession from sources such as authors and philosophers. Consider certification, licensing, codes of ethics, education, and enforcement