Posted: November 17th, 2023
FIN 300 BUSINESS FINANCE CLASS REPORT
This is an in depth analysis that you must complete by November 17, 2023, 11:59 p.m. This is an individual Class Project of a financial analysis of your Corporation. This project requires research of several financial websites to include your Corporations 10-K Form from its home page. Differences in responses may be due to rounding and the source (date and time) from which data was obtained. This project is to give students an opportunity to become familiar with different financial resources that are available. The importance of this project is to conduct a comprehensive analysis of a company using some of the financial resources mentioned by Brigham and Houston. The project may be submitted as one Excel document or two documents to include an Excel document (Financial Highlights) and a Word document. The grade for this project is based on completion of the steps in the process.
A comprehensive report will include an analysis of your Corporation. Your analysis should include:
1. Spread 2 years of financials (Balance Sheet) for the company using Excel (Do actual fiscal year-ends, not estimates).
2. Perform common size analysis for the most recent year in Excel. The common size analysis for the Balance Sheet is a percentage comparison to Total Assets. A common size analysis for the Income Statement is a percentage comparison of Sales. If the common size analysis is not the complete financial statement, it will not be accepted.
3. Conduct a stock analysis by collecting stock data – Price, Shares Outstanding, Opening, Last Traded, Day’s Range, beta, bond rating, etc. Be sure to include date and time that this information was retrieved from the website.
4. Calculate the following ratio’s: current ratio, quick ratio, inventory turnover, days’ sales outstanding, fixed asset turnover, total asset turnover, debt ratio, times interest earned ratio, profit margin, return on assets, and return on equity. Points will be deducted for any ratio not provided, even if the answer is ‘0.’ A ratio that does not provide the name of the ratio, the title of the line item in the formula, the formula of the ratio, and the answer will not receive points.
5. What is your summary of this company’s financial condition? Would you be interested in investing in this company? Why or why not? Are there additional factors that aren’t a part of this case that you would investigate before making a decision and, if so, what factors?
6. The Report should be at least 4 pages, double spaced (12 font, Times New Roman, plus a bibliography and as many exhibits/attachments as you wish. (The cover page is not included in the number of pages for the Report)
As with all assignments, the more closely I can follow your methodology and ‘see’ where your numbers come from the better the outcome. Following are a list of websites that may be helpful.
i) Executive Summary
a. Your Executive Summary may include: 1) What type of company you are analyzing, 2) Is it a franchise, 3) Why are you analyzing a company, 4) Is the company overall considered strong or weak, 5) Has sales and net income increased or decreased over the years, 6) Would you invest in the company, 7) Do you think the company will be around awhile, 8) What will be presented in the following sections of the paper, etc.
iii) Financial Highlights
a. 2 Years of Financials
i. Balance Sheet
b. Common Size Analysis Balance Sheet
c. Common Size Analysis Income Statement
d. Stock Analysis
e. Ratio Calculations
i. Current Ratio
ii. Quick Ratio
CLASS REPORT SAMPLE
The Financial Highlights (spreadsheets) are a part of the total number of pages even though they are completed in Excel. Please use this only as a guide to get started. All financial statements must be complete and all ratios must include the name of the ratio, the title of the line item in the formula, the formula of the ratio, and the answer.
I. Executive Summary
III. Financial Highlights
A. Example of Two-Year Spread
Balance Sheet (Please complete entire statement)
Cash and Cash Equivalent 8,352,000 7,764,000
Short Term Investment 2,452,000 208,000
B. Example of Common-size Analysis of Balance Sheet
Balance Sheet (Please complete entire statements)
2009 % of Total Assets
Cash and Cash Equivalent 8,352,000 31%
Short Term Investment 2,452,000 9%
Total Assets 26,500,000 100%
C. Stock Analysis (Please provide all data requested in number 3)
Stock Price (Last Traded)
D. Ratio Calculations (Please compute all ratios listed in number 4 using your financial statements). All ratios must include the name of the ratio, the title of the line item in the formula, the formula of the ratio, and the answer.
1. Current Ratio C. Assets/C. Liabilities 1000/500 2
2. Quick Ratio
3. Inventory Turnover Ratio