Principles of finance-comparison analysis

Assignment Help Business Management

Reference no: EM133126742

Overview

In preparation for your report in Project Two, you will need to calculate the financial ratios needed to determine your chosen business's current financial health. Once you've calculated these ratios, the results will be used to analyze the business's current financial position and help them make decisions about how to improve or maintain their financial health. Pay particular attention to working capital management. If liquidity is an issue, consider how the company will meet its short-term obligations.

Prompt

Using the Project Two Financial Formulas spreadsheet and the balance sheet, income statement, and cash flow statement from Mergent Online for your chosen company, calculate the financial ratios for the most recent fiscal quarter. Then, compare those ratios with the same ratios for the same fiscal quarter from one year prior in Mergent Online, and analyze your results.

Specifically, you must address the following rubric criteria:

Financial Calculations: Calculate accurate financial ratios to assess the business's current financial health. Specifically, calculate the following ratios:

Working capital

Current ratio

Debt ratio

Earnings per share

Price/earnings ratio

Total asset turnover ratio

Financial leverage

Net profit margin

Return on assets

Return on equity

Fiscal Quarter Comparison: Using Mergent Online, summarize the differences between the results from your financial calculations of the most recent fiscal quarter and the results of the same financial calculations of the same fiscal quarter from a year before for your chosen business.

For example, if the most recent fiscal quarter available is the 3rd quarter in 2020, then you will compare those results to the same financial calculations from the 3rd quarter in 2019.

Comparison Analysis: Explain what the results of your calculations and your comparison indicate about the business's current financial health, providing examples to support your explanation. You might consider the following questions:

Do the results indicate the business is financially healthy or financially unhealthy? Which results indicate this?

What might be the cause(s) of the business's financial success or failure?

Is more information needed to determine the business's financial health? If so, which pieces of information might still be needed?

Short-Term Financing: Explain how potential short-term financing sources could help the business raise needed funds to improve its financial health. Base your response on the business's current financial information.

Attachment:- Time Value of Money-Monthly Compounding.rar

Reference no: EM133126742

Questions Cloud

Merger as opposed to pursuing association : Compare and contrast some advantages and disadvantages to pursuing the merger as opposed to pursuing an association.

Assessing company future financial health : Explain the differences between systematic and unsystematic risk. Explain the impact a lower growth in sales could have on the dividend policy

Describe company primary business activities : Describe your company's primary business activities. Review the Annual Report and especially the Letter to Shareholders

Company vision and mission statements : What are the company's vision and mission statements? What are the major goals for the company? What is the Industry in which your company resides?

Principles of finance-comparison analysis : What might be the cause(s) of the business's financial success or failure? Is more information needed to determine the business's financial health?

Competitive strategy in global market : What resources may be a concern in the country you selected? How will this impact your competitive strategy in your global market?

Different strategies when pursuing global expansion : Deborah enters your office ready to discuss the project. Why is it important to combine different strategies when pursuing global expansion?

Will negatively impact current strategy : What cultural considerations should you take into account for your strategy? Will this negatively impact your current strategy?

Maximizing profit and maximizing the wealth of stockholders : Suppose management is examining policies that relate to maximizing profit and maximizing the wealth of the stockholders.

User Account

All Pages