Using The Report You Wrote In Topic 3 File Attached ✓ Solved

Using The Report You Wrote In Topic 3 File Attached Create An Execu

Using the report you wrote in Topic 3 (file attached), create an executive summary presentation of the report (7-9 slides, exclusive of the title and reference slides) with appropriate speaker notes that could be delivered to a C-suite executive in a corporation. Include the following in your presentation: A summary of the industry and companies chosen. An overview of the chosen company’s liquidity ratios relative to the industry averages and to the competitor. An overview of the chosen company’s solvency ratios relative to the industry averages and to the competitor. An overview of the chosen company’s profitability ratios relative to the industry averages and to the competitor. Describe the importance of the budgeting process in an organization relative to these ratios. Prepare a variance report and balanced scorecard for the chosen company, comparative against the industry averages for liquidity, solvency and profitability (C.1.3) Which and how would these ratios impact capital budgeting decisions. A concluding summary of which and how these ratios impact overall company performance and decision-making. Include an analysis of the relative strengths and weaknesses based on ratios. Consider the feedback from your instructor on the case study report you completed in Topic 3. Instructors Comments: Loren, Solid starting work in the paper. Please be sure to use a formal cover page. Good solid work in the information with liquidity ratios. In other areas, room for additional category ratios to be used and evaluated. A formal conclusion and recommendation is also needed to finalize the paper and select better performing company. Be sure to cite three-five relevant sources in support of your content. Utilize the GCU Library and external sources for your research. Title slide and reference slide are not included in the slide count. Include speaker notes below each content-related slide that represent what would be said if giving the presentation in person. Expand upon the information included in the slide and do not simply restate it. Please ensure the speaker notes include 50-100 words per slide.

Sample Paper For Above instruction

Executive Summary: Corporate Financial Ratios and Strategic Decision-Making

Slide Title: Corporate Financial Performance Analysis

Welcome to this executive overview of our recent financial analysis comparing Company A, Company B, and the industry averages. In the following slides, we will review key ratios—liquidity, solvency, and profitability—highlight their implications for strategic decision-making, and provide recommendations based on our findings.

Speaker Notes: This presentation aims to provide insights into the financial health of two leading companies within the industry. We will analyze their liquidity, solvency, and profitability ratios, discuss how these influence strategic decisions, including budgeting and capital allocation, and conclude with a recommendation on the better performing company.

Slide Title: Industry Context and Companies Chosen

The industry under review is the [Industry Name], characterized by [key traits, e.g., high capital intensity, rapid innovation]. Company A and Company B are leading players, each with distinctive operational focuses—Company A focuses on [X], while Company B specializes in [Y]. The analysis uses recent financial statements from fiscal year 2023.

Speaker Notes: Understanding the industry backdrop is crucial. This industry’s dynamics influence financial strategies significantly. Company A and B have been selected because of their market share, growth potential, and data availability, providing a comprehensive view for comparative analysis.

Slide Title: Liquidity Ratios Comparison

Company A exhibits a current ratio of 2.5, exceeding the industry average of 2.0 and the competitor’s ratio of 2.3. The quick ratio mirrors this trend, with Company A at 1.8 versus industry 1.4 and competitor 1.6. These ratios suggest a strong liquidity position, favoring short-term operational stability.

Speaker Notes: Liquidity ratios like current and quick ratios indicate a company's ability to meet short-term obligations. Company A’s higher ratios demonstrate better liquidity management, which can reduce financial risk. Such metrics are vital for effective cash flow planning and assessing resilience during economic downturns.

Slide Title: Solvency Ratios Comparison

Debt-to-equity for Company A is 0.4, lower than the industry average of 0.6 and the competitor’s 0.5, indicating conservative leverage. The interest coverage ratio stands at 8.0, above the industry average of 6.5 and competitor’s 7.2, reflecting strong capacity to meet interest obligations and lower financial risk.

Speaker Notes: Solvency ratios measure long-term financial stability. Company A’s lower debt-to-equity ratio demonstrates prudent leverage, while higher interest coverage points to a robust earnings capacity to service debt. These insights are essential for assessing creditworthiness and long-term viability.

Slide Title: Profitability Ratios Comparison

The net profit margin for Company A is 15%, higher than the industry average of 10%, and the competitor’s 12%. Return on assets (ROA) stands at 8%, surpassing industry averages of 5%, demonstrating efficient asset utilization. Return on equity (ROE) is also favorable at 18% compared to industry 12%.

Speaker Notes: Profitability ratios highlight operational efficiency and shareholder return. Company A’s superior margins and ROE suggest effective management and competitive advantage, which are critical for sustained growth and attracting investment.

Slide Title: Budgeting's Role in Strategic Financial Management

Budgeting aligns financial resources with strategic goals, influencing ratios like liquidity, solvency, and profitability. Accurate budgeting ensures liquidity is maintained, debt levels are managed, and profitability targets are achieved, enabling better decision-making and resource allocation.

Speaker Notes: Effective budgeting is fundamental to maintaining healthy ratios. It helps forecast cash needs, control costs, and invest wisely, ultimately shaping the financial stability and growth trajectory of the organization.

Slide Title: Variance Analysis and Balanced Scorecard

The variance report indicates that Company A exceeded profit expectations by 5%, while liquidity ratios remain within industry norms. The balanced scorecard highlights strengths in financial performance and customer satisfaction but reveals weaknesses in internal processes, guiding strategic improvements.

Speaker Notes: Variance analysis provides insight into operational efficiency and financial accuracy. The balanced scorecard links financial metrics to customer, internal process, and learning and growth perspectives, offering a comprehensive view for strategic refinement.

Slide Title: Ratios and Capital Budgeting Decisions

Strong liquidity and solvency ratios enable the organization to undertake large capital projects with manageable risk. Profitability ratios influence project selection by indicating potential returns. Ratios guide capital allocation, risk assessment, and investment prioritization, ensuring sustainable growth.

Speaker Notes: Ratios inform capital budgeting by highlighting financial capacity and project viability. High profitability and stability ratios support expansion initiatives, whereas weaker ratios may prompt risk mitigation or delay of investment.

Slide Title: Overall Performance Evaluation and Strategic Recommendations

Based on comprehensive ratio analysis, Company A demonstrates superior financial health compared to Company B and the industry average. Its strong liquidity, solvency, and profitability ratios suggest it is better positioned for future growth and investment opportunities. It is recommended that Company A focus on leveraging its strengths, while Company B should address areas of weakness, especially in profitability and liquidity management.

Speaker Notes: The analysis indicates that Company A is the more financially resilient and profitable choice. Strategic focus should be on maintaining liquidity, optimizing asset utilization, and capitalizing on profitability. Continuous monitoring and dynamic budget adjustments will enhance decision-making and support long-term success.

References

• Brigham, E. F., & Ehrhardt, M. C. (2017). Financial Management: Theory & Practice. Cengage Learning.
• Higgins, R. C. (2018). Analysis for Financial Management. McGraw-Hill Education.
• Ross, S. A., Westerfield, R. W., & Jordan, B. D. (2019). Fundamentals of Corporate Finance. McGraw-Hill Education.
• Investopedia. (2023). Financial Ratio Analysis. https://www.investopedia.com/terms/r/ratioanalysis.asp
• GCU Library. (2023). Financial Statement Analysis Resources. Grand Canyon University Library.