Determine the company’s profit margin, return on assets, and return on equity ratios for a three-year period and discuss any observations or trends of the ratios.
Determine the company’s asset turnover and inventory turnover ratios for a three-year period and discussion of any observations or trends of the ratios.
Determine the company’s current ratio and quick ratio for a three-year period and discussion of any observations or trends of the ratios.
Determine the debt ratio, debt to equity ratio, and times interest earned ratio for a three-year period and discussion of any observations or trends of those ratios.
Determine the company’s return on investment ratio, price/earnings ratio, and dividend payout ratio for a three-year period and discussion of any observations or trends of the ratios.
Determine the company’s beta and compare the company’s beta in relation to the market.
The analysis should also address any observed trends such as improvements or declines in any of the areas calculated above.
This section should be three to four pages in length. Graphs and charts can be used to enhance this section. It is important to note that the emphasis in this section is not on the calculation or even reporting of these financial figures, but in what the numbers mean for the company in terms of its past, future, or relationship to its competitors.
Strategic Direction of the Company
Discuss the company’s future plans to achieve its short and long-term goals and objectives and its plans for the future.
This section should be two to three paragraphs in length. Information on a company’s strategic direction can be found in the management’s discussion of the financial statement, typically found prior to the financial statements in the annual report.
Recommendation Decision on Future Investment
____ Conclude the report with a recommendation for or against future investment in the company.
____ The recommendation for or against future investment should include a clearly stated rationale for the investment decision drawn from financial analysis and previous observations.
Important: Filling your report with copied and pasted portions of your company’s financial statements, tables, and graphs in order to meet page requirements is not to be substituted for a detailed and thorough analysis. You are graded on the depth of your analysis, not by how many pages you have included.
The paper emphasis should be on the corporate decision making that led to the financial results and interpretation of those data, not the numbers themselves.
