Compute financial ratios and time value and variables

Assignment Help Financial Management
Reference no: EM131224641

I have completed part A and have attached them below.

For Part B I have completed the Vera Bradley but Coach will need the following on the spreadsheet.

  • Current ratio
  • Debt/equity ratio
  • Free cash flow
  • Earnings per share
  • Price/earnings ratio
  • Return on equity
  • Net profit margin

Part C - I think I have already completed it but please double check.

Company A should be Vera Bradley and Company B should be Coach.

Final Project Part II
Part II Overview

For this part of the final project, you will be given a scenario in which you are asked to illustrate your financial computation and analysis skills.

This part of the assessment addresses the following course outcomes:
• Compute financial ratios, time value, variables, and returns using industry standard tools for optimizing financial success
• Analyze corporate financial data for multiple companies in evaluating past and future financial performances

Part II Prompt
For this section of your employment exam, you will select two companies. The first company needs to come from your TDAU thinkorswim portfolio. The second needs to be a competitor of the first company from the same industry. You will be responsible for collecting, synthesizing, and making decisions regarding both companies. After evaluating these companies' financial data, you will then decide which company's stock is the better investment.

This section of your employment examination must be submitted in two parts. Part A will contain the workbooks that house all of your quantitative data and formulas, along with any of the information that is relevant for your chosen companies. Part B will contain your answers to the questions asked below, composed in a cohesive manner. If you are referring to data that is found within the workbooks in Part A, be sure to include a citation-for example, "rate of return is 3.570 USD (E64, WB2)," where E64 is the cell that the calculation took place in and WB2 is designating "workbook 2." This ensures that your instructor can quickly and accurately check data entry, formula use, and financial calculations.

Your submission must address the following critical elements:
I. Preparing the Workbooks
A. Download the annual income statements, balance sheets, and cash flow statements for the last three completed fiscal years for your chosen companies. This information must be included in your final submission.

B. Prepare a worksheet for each of the companies to display their financial data for the last three fiscal years. Ensure your data is accurate and organized. Include these worksheets as a workbook in your final submission.

C. Find historical stock prices for both companies and add this information to the respective spreadsheets. Consider the appropriate date range you should use.

II. Three-Year Returns
A. What is the three-year return on the stock price of the first company (Company A)? How is the stock performing? Ensure that you use the appropriate formula in your spreadsheets to calculate the three-year return on the given company's stock price.

B. What is the three-year return on the stock price of the second company (Company B)? How is this stock performing? Ensure that-you use the appropriate formula in your spreadsheets to calculate the three-year return on your chosen company's stock price.

C. How do these two stocks compare in terms of three-year returns? What does this indicate about these two companies?

III. Financial Calculations

A. Using the appropriate spreadsheets, which are to be included In the workbooks, calculate the price•to-earnings ratio for the last three fiscal years of the given and your chosen companies. Be sure that you are entering and using the correct formula.

B. Using the appropriate spreadsheets, which are to be included in the workbooks, calculate the debt-to-equIty ratios for the last three fiscal years of the given and your chosen companies. 8e sure that you are entering and using the correct formula.

C. Using the appropriate spreadsheets, which are to be included in the workbooks, calculate the return-on-equity ratios for the last three fiscal years of the given and your chosen companies. Be sure that you are entering and using the correct formula.

D. Using the appropriate spreadsheets, which are to be included in the workbooks, calculate the earnings per share for the last three fiscal years of the given and your chosen companies. Be sure that you are entering and using the correct formula.

E. Using the appropriate spreadsheets, which are to be included in the workbooks, calculate the profit margins for the last three fiscal years of the given and your chosen companies. Be sure that you are entering and using the correct formula.

F. Using the appropriate spreadsheets, which are to be included in the workbooks, calculate the free cash flows for the last three fiscal years of the given and your chosen companies. Be sure that you are entering and using the correct formula.

IV. Industry Averages
A. Obtain current industry averages of three of the financial calculations above for both companies and add this information to your spreadsheet for comparison. Ensure the accuracy and organization of your data.

B. In this context, how is each company's finandal health? Now do these two companies compare to one another? Consider the appropriate date range you should use.

V. Performance Over Time
A. Analyze the performance of the Company A over time. What financial strengths and weaknesses does this company have? Consider addressing the free cash flows and ratios you calculated earlier.

B. Analyze the performance of your Company B over time. What financial strengths and weaknesses does this company have? Consider addressing the free cash flows and ratios you calculated earlier.

C. Analyze how the data differ between these two companies. Why do you think this is? Consider addressing the free cash flows and ratios you calculated earlier.

VI. Investment
A. Are the companies considered growth or value companies? Why?

B. Which company's stock is the better investment? Consider supporting your answer with data.

Attachment:- Coach_SPDSHT1.rar

Attachment:- Vera Bradley_SPDSHT1.rar

Reference no: EM131224641

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