Perform a comprehensive financial analysis on “Norfolk Southern Corporation’s” most recent performance by comparing last year to current year results. Norfolk Southern is a publicly-traded company. Create an Excel spreadsheet to perform the required analysis on your company which must be submitted for grading. You are required to use Excel formulas to perform all calculations to earn the full amount of points. The BUSM521_Financial Analysis Example illustrates how to format your analysis and how to use formulas for the calculations. Once your analysis is complete you will also prepare a PowerPoint presentation which will serve as your report.
1. Prepare a Horizontal Analysis of the Balance Sheet.
2. Prepare a Horizontal Analysis of the Income Statement.
3. Prepare a Component Percentage Income Statement.
4. Prepare a Component Percentage Balance Sheet.
5. Calculate the following financial ratios for last year and the current year:
1. Return on Equity
2. Earnings per Share
3. Total Asset Turnover Ratio
4. Inventory Turnover Ratio
5. Current Ratio
6. Debt to Equity Ratio
7. Price/Earnings (P/E) Ratio
6. You will submit your completed spreadsheet for grading.
5. Prepare a PowerPoint presentation to present and explain the results of your analysis. You are required to utilize the MD&A section of the annual report to explain your analysis.
6. In addition to the cover page, contents page, and reference page, your PowerPoint deck should include at least 21 slides:
1. Introduction: 1 slide
2. Company history: 2 or 3 slides
3. Horizontal Analysis of the Balance Sheet with comments about the key differences: 2 slides (statement on 1 slide with comments on the 2nd slide)
4. Horizontal Analysis of the Income Statement with comments about the key differences: 2 slides
5. Component Percentage Income Statement with comments about the key differences: 2 slides
6. Component Percentage Balance Sheet with comments about the key differences: 2 slides
7. Present the seven financial ratios that show the two-year trend and use graphs or charts for visualization of the trend analysis. Explain the meaning of each ratio and comment about the company’s ratio values (1 slide per ratio): 7 slides
8. Use the MD&A section of the annual report to explain the results of the analysis of your company: 2 or 3 slides
9. On the final slide answer the question of would you buy stock in the company you selected? Why or why not?
10. Your PowerPoint presentation should look professional and include a cover page, contents page, a references page, and have a logical layout.
