Financial Communication Student Assignment

Financial Communicationfina 360 Student Assignmentassignment Objecti

Financial Communication (FINA 360) Student Assignment requires students to select two publicly traded companies from the same industry, research their financial data over the past three years, calculate key financial ratios, analyze performance, and prepare both a written report and an oral presentation. The assignment aims to develop applied understanding, analytical skills, and communication abilities through a comprehensive analysis of the companies' financial health.

Paper For Above instruction

The purpose of this assignment is to enable students to deepen their understanding of financial statements and ratios, critically evaluate company performance, and effectively communicate their findings both in writing and verbally. This project involves several integrated components: selecting appropriate companies, conducting thorough research, performing financial analyses, and presenting insights, all within the context of real-world financial decision-making.

Selection and Research of Companies

Students are instructed to select two publicly traded companies within the same industry, subject to approval by their instructor. This ensures that the comparative analysis is relevant and feasible. Once approved, students conduct online research to gather relevant financial data. The key is to focus on meaningful figures, not merely compiling entire financial statements. Essential data includes sales revenue, net income after tax, share price, earnings per share, and the number of outstanding shares, among possibly other relevant financial metrics.

Data Compilation and Analysis

A vital aspect of this assignment is data organization; students are encouraged to create a clear, comparative table displaying the financial figures and ratios. The analysis covers three consecutive years, allowing for trend observation and performance evaluation over time. Rather than quantity, the emphasis is on understanding and interpreting the data.

Calculating Financial Ratios

Students must calculate at least one ratio in each of the four major financial categories for each year:

- Profitability ratios (e.g., Return on Assets, Return on Equity)

- Asset Utilization ratios (e.g., Asset Turnover)

- Liquidity ratios (e.g., Current Ratio, Quick Ratio)

- Debt Utilization ratios (e.g., Debt to Equity, Interest Coverage)

This results in a total of twelve ratios per company over three years (4 ratios x 3 years). These ratios serve as indicators of financial health, operational efficiency, liquidity position, and leverage.

Performance Evaluation

Based on the collected financial data and ratios, students analyze each company's performance, discussing strengths, weaknesses, and trends. The evaluation should consider how effectively each company manages its assets, finances, and operations. Subsequently, students reflect on whether they would prefer owning stock in one, both, or neither of the companies, based on the financial insights obtained.

Presentation of Findings

Students are encouraged to synthesize their findings into a clear, well-structured discussion, using a table to compare financial and ratio data. The written report should be 4 to 8 pages long, excluding title and references, formatted according to APA standards. Clarity, coherence, and critical analysis are essential.

Oral Summary

In addition to the written report, students prepare a concise 3-5 minute PowerPoint presentation summarizing their key findings and insights. This presentation should be well-rehearsed, with notes prepared to avoid simply reading from the slides. The oral exercise aims to enhance communication skills, simulating a professional business environment where succinct, impactful presentations are valued.

Conclusion

This assignment provides a comprehensive practical experience in financial analysis and communication, encouraging students to relate theoretical knowledge to real-world financial data, develop critical thinking, and present their conclusions effectively. Overall, it fosters analytical rigor and professional communication skills, preparing students for future roles in finance, investment, or corporate management.

References

- Brigham, E. F., & Houston, J. F. (2021). Fundamentals of Financial Management (15th ed.). Cengage Learning.

- Ross, S. A., Westerfield, R. W., & Jordan, B. D. (2022). Fundamentals of Corporate Finance (12th ed.). McGraw-Hill Education.

- Investopedia. (2023). Financial Ratios. https://www.investopedia.com/terms/f/financial-ratio.asp

- Damodaran, A. (2015). Applied Corporate Finance. John Wiley & Sons.

- White, G. I., Sondhi, A. C., & Fried, D. (2003). The Analysis and Use of Financial Statements. John Wiley & Sons.

- Gallo, A. (2014). The Art of Company Valuation. Harvard Business Review.

- Koller, T., Goedhart, M., & Wessels, D. (2020). Valuation: Measuring and Managing the Value of Companies. Wiley Finance

- Penman, S. H. (2012). Financial Statement Analysis and Security Valuation. McGraw-Hill Education.

- Fridson, M. S., & Alvarez, F. (2022). Financial Statement Analysis: A Practitioner’s Guide. Wiley.

- Fabozzi, F. J. (2018). Financial Management and Analysis. Wiley.