Financial Analysis
Human Resource Management Financial Analysis
5 months ago 60
AssignmentInstructions.docx
Rubric.docx
AssignmentInstructions.docx
Purpose
To evaluate your ability to analyze financial statements, interpret key financial ratios, assess operational performance, and provide data-driven business recommendations through comprehensive comparative analysis of public companies.
Associated Skills
· Financial statement analysis and ratio calculation
· Trend analysis and data interpretation
· Comparative business performance evaluation
· Strategic thinking and recommendation development
· Professional business report writing and presentation
· Critical assessment of operational strengths and weaknesses
· Data visualization and professional formatting
Instructions
In this assignment, you will conduct a financial analysis of two public companies selected from the list below. You will evaluate key financial ratios, trends, and operational strengths using three years of summarized financial data. Based on your findings, you will provide two recommendations per company to improve financial performance or operational efficiency.
Company Options (Choose Two)
· Apple Inc. (Technology)
· Walmart Inc. (Retail)
· Delta Air Lines (Transportation)
· Johnson & Johnson (Healthcare)
For each company you select, download the PDF version of the SEC 10-K by searching for the Name of Company Investor Relations SEC and follow the path to the SEC 10-K file for the two most recent years (this year, last year, and the previous year, as may be available). Download the PDF files for reference when completing this assignment.
Assignment Deliverables
1. Company Backgrounds (Approx. 1 page)
For each company, provide:
· Brief industry and business overview
· Key revenue sources
· Any major changes or events during the three-year period
· Initial observations on financial trends
2. Financial Ratio and Trend Analysis (Approx. 2–3 pages)
Choose five key financial ratios from the categories below and calculate them for each company across the three-year period:
Suggested Ratio Categories (choose 1–2 from each):
· Liquidity: Current Ratio, Quick Ratio
· Profitability: Net Profit Margin, Return on Equity (ROE)
· Efficiency: Asset Turnover, Inventory Turnover
· Leverage: Debt-to-Equity Ratio, Interest Coverage Ratio
For each ratio:
· Present a simple chart or table to show changes over time
· Briefly interpret the trend (Is it improving? Declining?)
· Compare the ratio performance between the two companies
3. Operational Insights (Approx. 1–1.5 pages)
· Identify one operational strength and one weakness for each company based on the ratio trends
· Briefly assess how these strengths/weaknesses affect decision-making, investor confidence, or growth potential
4. Recommendations (Approx. 1–1.5 pages)
Provide two specific recommendations per company. For each:
· Explain the rationale using your financial findings
· Describe the expected financial impact
· Mention any challenge the company might face in applying the recommendation
Submission Guidelines
· Format as a professional business report with section headers
· Use tables and simple visuals where helpful
· Include basic citations if external industry comparisons are used
· Final submission should be 5 to 7 double-spaced pages, not including title page or references
Submission Guidelines / Criteria for Success
· Analysis and Insight (40%): Quality of ratio interpretation, operational insights, and comparative observations
· Accuracy and Application (30%): Correct calculations and appropriate application of financial concepts
· Recommendations (20%): Clear, actionable, and supported by data
· Professional Writing (10%): Organization, clarity, formatting, and grammar
References
1. Financial Statement Analysis: A Practitioner's Guide by Martin Fridson and Fernando Alvarez https://onlinelibrary.wiley.com/doi/book/10.1002/9781119457176
2. US SEC - Beginner's Guide to Financial Statements
https://www.sec.gov/about/reports-publications/investorpubsbegfinstmtguide
3. IBISWorld Industry Reports
4. SEC EDGAR Database
https://www.sec.gov/search-filings
5. Yahoo Finance
6. Morningstar
Rubric.docx
|
Criteria |
Excellent |
Proficient |
Developing |
Needs Improvement |
Not Submitted |
Criterion Score |
|
Company Backgrounds |
20 points 20 Points Clearly provides all required elements (industry and business overview, revenue sources, major events, financial trends; 8 items total). |
15 points 17 Points Provides 6-7 required elements clearly. |
10 points 15 Points Provides 4-5 required elements clearly. |
5 points 13 Points Provides fewer than 4 required elements. |
0 points 0 Points Not submitted. |
Score of Company Backgrounds, / 20 |
|
Financial Ratio Accuracy |
40 points 40 Points Accurately calculates all 10 financial ratios (5 per company) without errors. |
30 points 34 Points Accurately calculates at least 8 financial ratios. |
20 points 30 Points Accurately calculates at least 6 financial ratios. |
10 points 26 Points Accurately calculates fewer than 6 financial ratios. |
0 points 0 Points Not submitted. |
Score of Financial Ratio Accuracy, / 40 |
|
Trend Analysis |
20 points 20 Points Correctly identifies and clearly explains trends for all 10 ratios across the 3-year period with precise numeric references. |
15 points 17 Points Correctly identifies and explains trends for at least 8 ratios with numeric references. |
10 points 15 Points Correctly identifies and explains trends for at least 6 ratios with some numeric references. |
5 points 13 Points Incorrect or unclear trend analysis for fewer than 6 ratios or lacks numeric references. |
0 points 0 Points Not submitted. |
Score of Trend Analysis, / 20 |
|
Cross-Company Comparison |
20 points 20 Points Clearly and accurately compares all 5 ratios between the two companies, providing explicit numeric comparisons. |
15 points 17 Points Clearly compares at least 4 ratios with explicit numeric comparisons. |
10 points 15 Points Clearly compares at least 3 ratios with basic numeric references. |
5 points 13 Points Clearly compares fewer than 3 ratios or lacks numeric comparisons. |
0 points 0 Points Not submitted. |
Score of Cross-Company Comparison, / 20 |
|
Operational Insights |
20 points 20 Points Clearly identifies and thoroughly explains 1 strength and 1 weakness for each company (total 4 insights), directly tied to ratio analysis. |
15 points 17 Points Identifies and explains at least 3 of 4 operational insights, clearly tied to ratio analysis. |
10 points 15 Points Identifies and explains at least 2 of 4 operational insights, loosely tied to ratio analysis. |
5 points 13 Points Provides fewer than 2 clear operational insights or insights disconnected from ratio analysis. |
0 points 0 Points Not submitted. |
Score of Operational Insights, / 20 |
|
Recommendations Quality & Practicality |
20 points 20 Points Provides 2 clear, actionable recommendations per company (4 total), each including rationale, expected impact, and clearly quantified implementation challenges. |
15 points 17 Points Provides 3 actionable recommendations clearly with most required details quantified or specifically stated. |
10 points 15 Points Provides 2 actionable recommendations with basic rationale and minimal details on impacts or implementation. |
5 points 13 points Provides fewer than 2 clear or actionable recommendations, with minimal details or lacking quantifiable aspects. |
0 points 0 Points Not submitted. |
Score of Recommendations Quality & Practicality, / 20 |
|
Skills |
10 points 10 Points The student skillfully and consistently integrates relevant skills into the assignment. Application is accurate, contextually appropriate, and enhances the depth or originality of the assignment. Demonstrates progress toward mastery through insightful use of skills. |
8 points 8 Points The student applies relevant skills accurately and appropriately. The use of skills supports key ideas or analysis and demonstrates a strong understanding. Integration is effective but may lack the depth or originality of emerging mastery-level response. |
5 points 7 Points The student applies relevant skills inconsistently or with partial success. Connections to the assignment may be unclear, generalized, or only loosely aligned with the topic. Demonstrates a basic understanding but with limited integration. |
2 points 6 Points The student attempoints to apply relevant skills but with evident inaccuracies, oversimplifications, or weak alignment with the assignment content. Demonstrates limited awareness or understanding. |
|
|
AssignmentInstructions.docx
Purpose
To evaluate your ability to analyze financial statements, interpret key financial ratios, assess operational performance, and provide data-driven business recommendations through comprehensive comparative analysis of public companies.
Associated Skills
· Financial statement analysis and ratio calculation
· Trend analysis and data interpretation
· Comparative business performance evaluation
· Strategic thinking and recommendation development
· Professional business report writing and presentation
· Critical assessment of operational strengths and weaknesses
· Data visualization and professional formatting
Instructions
In this assignment, you will conduct a financial analysis of two public companies selected from the list below. You will evaluate key financial ratios, trends, and operational strengths using three years of summarized financial data. Based on your findings, you will provide two recommendations per company to improve financial performance or operational efficiency.
Company Options (Choose Two)
· Apple Inc. (Technology)
· Walmart Inc. (Retail)
· Delta Air Lines (Transportation)
· Johnson & Johnson (Healthcare)
For each company you select, download the PDF version of the SEC 10-K by searching for the Name of Company Investor Relations SEC and follow the path to the SEC 10-K file for the two most recent years (this year, last year, and the previous year, as may be available). Download the PDF files for reference when completing this assignment.
Assignment Deliverables
1. Company Backgrounds (Approx. 1 page)
For each company, provide:
· Brief industry and business overview
· Key revenue sources
· Any major changes or events during the three-year period
· Initial observations on financial trends
2. Financial Ratio and Trend Analysis (Approx. 2–3 pages)
Choose five key financial ratios from the categories below and calculate them for each company across the three-year period:
Suggested Ratio Categories (choose 1–2 from each):
· Liquidity: Current Ratio, Quick Ratio
· Profitability: Net Profit Margin, Return on Equity (ROE)
· Efficiency: Asset Turnover, Inventory Turnover
· Leverage: Debt-to-Equity Ratio, Interest Coverage Ratio
For each ratio:
· Present a simple chart or table to show changes over time
· Briefly interpret the trend (Is it improving? Declining?)
· Compare the ratio performance between the two companies
3. Operational Insights (Approx. 1–1.5 pages)
· Identify one operational strength and one weakness for each company based on the ratio trends
· Briefly assess how these strengths/weaknesses affect decision-making, investor confidence, or growth potential
4. Recommendations (Approx. 1–1.5 pages)
Provide two specific recommendations per company. For each:
· Explain the rationale using your financial findings
· Describe the expected financial impact
· Mention any challenge the company might face in applying the recommendation
Submission Guidelines
· Format as a professional business report with section headers
· Use tables and simple visuals where helpful
· Include basic citations if external industry comparisons are used
· Final submission should be 5 to 7 double-spaced pages, not including title page or references
Submission Guidelines / Criteria for Success
· Analysis and Insight (40%): Quality of ratio interpretation, operational insights, and comparative observations
· Accuracy and Application (30%): Correct calculations and appropriate application of financial concepts
· Recommendations (20%): Clear, actionable, and supported by data
· Professional Writing (10%): Organization, clarity, formatting, and grammar
References
1. Financial Statement Analysis: A Practitioner's Guide by Martin Fridson and Fernando Alvarez https://onlinelibrary.wiley.com/doi/book/10.1002/9781119457176
2. US SEC - Beginner's Guide to Financial Statements
https://www.sec.gov/about/reports-publications/investorpubsbegfinstmtguide
3. IBISWorld Industry Reports
4. SEC EDGAR Database
https://www.sec.gov/search-filings
5. Yahoo Finance
6. Morningstar
Rubric.docx
|
Criteria |
Excellent |
Proficient |
Developing |
Needs Improvement |
Not Submitted |
Criterion Score |
|
Company Backgrounds |
20 points 20 Points Clearly provides all required elements (industry and business overview, revenue sources, major events, financial trends; 8 items total). |
15 points 17 Points Provides 6-7 required elements clearly. |
10 points 15 Points Provides 4-5 required elements clearly. |
5 points 13 Points Provides fewer than 4 required elements. |
0 points 0 Points Not submitted. |
Score of Company Backgrounds, / 20 |
|
Financial Ratio Accuracy |
40 points 40 Points Accurately calculates all 10 financial ratios (5 per company) without errors. |
30 points 34 Points Accurately calculates at least 8 financial ratios. |
20 points 30 Points Accurately calculates at least 6 financial ratios. |
10 points 26 Points Accurately calculates fewer than 6 financial ratios. |
0 points 0 Points Not submitted. |
Score of Financial Ratio Accuracy, / 40 |
|
Trend Analysis |
20 points 20 Points Correctly identifies and clearly explains trends for all 10 ratios across the 3-year period with precise numeric references. |
15 points 17 Points Correctly identifies and explains trends for at least 8 ratios with numeric references. |
10 points 15 Points Correctly identifies and explains trends for at least 6 ratios with some numeric references. |
5 points 13 Points Incorrect or unclear trend analysis for fewer than 6 ratios or lacks numeric references. |
0 points 0 Points Not submitted. |
Score of Trend Analysis, / 20 |
|
Cross-Company Comparison |
20 points 20 Points Clearly and accurately compares all 5 ratios between the two companies, providing explicit numeric comparisons. |
15 points 17 Points Clearly compares at least 4 ratios with explicit numeric comparisons. |
10 points 15 Points Clearly compares at least 3 ratios with basic numeric references. |
5 points 13 Points Clearly compares fewer than 3 ratios or lacks numeric comparisons. |
0 points 0 Points Not submitted. |
Score of Cross-Company Comparison, / 20 |
|
Operational Insights |
20 points 20 Points Clearly identifies and thoroughly explains 1 strength and 1 weakness for each company (total 4 insights), directly tied to ratio analysis. |
15 points 17 Points Identifies and explains at least 3 of 4 operational insights, clearly tied to ratio analysis. |
10 points 15 Points Identifies and explains at least 2 of 4 operational insights, loosely tied to ratio analysis. |
5 points 13 Points Provides fewer than 2 clear operational insights or insights disconnected from ratio analysis. |
0 points 0 Points Not submitted. |
Score of Operational Insights, / 20 |
|
Recommendations Quality & Practicality |
20 points 20 Points Provides 2 clear, actionable recommendations per company (4 total), each including rationale, expected impact, and clearly quantified implementation challenges. |
15 points 17 Points Provides 3 actionable recommendations clearly with most required details quantified or specifically stated. |
10 points 15 Points Provides 2 actionable recommendations with basic rationale and minimal details on impacts or implementation. |
5 points 13 points Provides fewer than 2 clear or actionable recommendations, with minimal details or lacking quantifiable aspects. |
0 points 0 Points Not submitted. |
Score of Recommendations Quality & Practicality, / 20 |
|
Skills |
10 points 10 Points The student skillfully and consistently integrates relevant skills into the assignment. Application is accurate, contextually appropriate, and enhances the depth or originality of the assignment. Demonstrates progress toward mastery through insightful use of skills. |
8 points 8 Points The student applies relevant skills accurately and appropriately. The use of skills supports key ideas or analysis and demonstrates a strong understanding. Integration is effective but may lack the depth or originality of emerging mastery-level response. |
5 points 7 Points The student applies relevant skills inconsistently or with partial success. Connections to the assignment may be unclear, generalized, or only loosely aligned with the topic. Demonstrates a basic understanding but with limited integration. |
2 points 6 Points The student attempoints to apply relevant skills but with evident inaccuracies, oversimplifications, or weak alignment with the assignment content. Demonstrates limited awareness or understanding. |
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