On March 24, 2015, Utsa Partnered With The San Antonio Expre

On March 24 2015 Utsa Partnered With The San Antonio Express News An

Choose a company that you will focus on for all of the assignments. Once you select a company, you cannot switch! Some notes on choosing a company: a. Choose a company that you can obtain lots of information on. This can be either a publicly traded company or a company you work for or own. b. Companies in traditional industries (manufacturing, consumer discretionary) may be easier to work with. c. Resources: BusinessWeek, SEC Online (Edgars), NU Library (Reference USA, D&B Million Dollar Database), yahoo.com/finance.

Put together an excel worksheet with the income statement, balance sheet and statement of cash flows for the most recent year.

Create a common size income statement and balance sheet for your company. (Most recent year).

Perform ratio analysis on your company for the most recent year. At a minimum you should have 10 ratios. (I want to see the calculations).

Paper For Above instruction

The assignment requires a comprehensive financial analysis of a selected company, focusing on its most recent fiscal year. The analysis encompasses gathering detailed financial statements, creating comparable standardized reports, and performing ratio calculations to evaluate the company’s financial health and performance.

Choosing an appropriate company is the foundational step. It should be a company for which ample financial data can be obtained through reliable sources such as BusinessWeek, SEC filings, Reference USA, or Yahoo Finance. The company can be publicly traded or privately owned, but accessibility to detailed financial statements is critical. Industries such as manufacturing or consumer discretionary often offer more straightforward financial data for analysis, though this is not a strict requirement.

Once the company is selected, the first task involves assembling a comprehensive excel worksheet that includes the income statement, balance sheet, and cash flow statement for the most recent fiscal year. These financial statements serve as the baseline for subsequent analysis. Following this, a common size financial statement should be created for both the income statement and balance sheet, which involves expressing line items as percentages of total revenues or total assets, respectively. This standardization facilitates comparison across periods and with competitors.

Next, the core of the assignment involves performing ratio analysis on the company's financials. A minimum of ten ratios should be calculated, covering various aspects of financial health such as liquidity, solvency, efficiency, profitability, and market valuation. These ratios might include current ratio, quick ratio, debt-to-equity ratio, return on assets, return on equity, gross profit margin, net profit margin, inventory turnover, receivables turnover, and earnings per share, among others. The calculations should be transparent to demonstrate understanding and accuracy.

The purpose of this exercise is to develop an in-depth understanding of the company's financial condition, strengths, and weaknesses. Analyzing ratios in context, comparing them to industry benchmarks, and interpreting what they reveal about management efficiency, liquidity, leverage, and profitability will deepen financial literacy.

Additionally, it is recommended that students prepare to present their findings to classmates, summarizing key insights derived from their ratio analysis and overall financial evaluation. This enhances communication skills and provides an opportunity for peer feedback.

In summary, this assignment emphasizes data collection, standardization, ratio analysis, and interpretation. Completing these steps systematically will build foundational skills essential for financial analysis and decision-making. The final submission should include the Excel worksheets (income statement, balance sheet, cash flow statement), common size versions, and a comprehensive written analysis explaining the implications of the ratios and the company's financial health.

References

  • Brigham, E. F., & Ehrhardt, M. C. (2016). Financial Management: Theory & Practice. Cengage Learning.
  • White, G. I., Sondhi, A. C., & Fried, D. (2003). The Analysis and Use of Financial Statements. Wiley.
  • Higgins, R. C. (2012). Analysis for Financial Management. McGraw-Hill Education.
  • Ross, S. A., Westerfield, R. W., & Jaffe, J. (2013). Corporate Finance. McGraw-Hill Education.
  • Penman, S. H. (2012). Financial Statement Analysis and Security Valuation. McGraw-Hill/Irwin.
  • Graham, J. R., & Harvey, C. R. (2001). The theory and practice of corporate finance: Evidence from the field. Journal of Financial Economics, 60(2-3), 187-243.
  • Higgins, R. C. (2007). Analysis for Financial Management. McGraw-Hill Education.
  • McLaney, E., & Atrill, P. (2014). Financial Accounting for Decision Makers. Pearson Education.
  • Damodaran, A. (2012). Investment Valuation: Tools and Techniques for Determining the Value of Any Asset. Wiley.
  • Altman, E. I. (2000). Predicting Financial Distress of Companies: Revisiting the Z-Score and ZETA® Models. Journal of Banking & Finance, 24(4), 589-615.

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