Principle of Finance Week 5-2 Assignment

9/26/21, 9:55 AM Project Two Milestone Guidelines and Rubric - FIN-320-T1991 Principles of Finance 21EW1

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Project Two Milestone Guidelines and Rubric

Overview

In prepara�on for your report in Project Two, you will need to calculate the financial ra�os needed to determine your chosen

business’s current financial health. Once you’ve calculated these ra�os, the results will be used to analyze the business’s current

financial posi�on and help them make decisions about how to improve or maintain their financial health. Pay par�cular a�en�on to

working capital management. If liquidity is an issue, consider how the company will meet its short-term obliga�ons.

Prompt

Using the Project Two Financial Formulas spreadsheet and the balance sheet, income statement, and cash flow statement from

Mergent Online for your chosen company, calculate the financial ra�os for the most recent fiscal quarter. Then, compare those

ra�os with the same ra�os for the same fiscal quarter from one year prior in Mergent Online, and analyze your results.

Specifically, you must address the following rubric criteria:

Financial Calcula�ons: Calculate accurate financial ra�os to assess the business’s current financial health. Specifically,

calculate the following ra�os:

Working capital

Current ra�o

Debt ra�o

Earnings per share

Price/earnings ra�o

Total asset turnover ra�o

Financial leverage

Net profit margin

Return on assets

Return on equity

Fiscal Quarter Comparison: Using Mergent Online, summarize the differences between the results from your financial

calcula�ons of the most recent fiscal quarter and the results of the same financial calcula�ons of the same fiscal quarter

from a year before for your chosen business.

For example, if the most recent fiscal quarter available is the 3rd quarter in 2020, then you will compare those results

to the same financial calcula�ons from the 3rd quarter in 2019.

Comparison Analysis: Explain what the results of your calcula�ons and your comparison indicate about the business’s

current financial health, providing examples to support your explana�on. You might consider the following ques�ons:

Do the results indicate the business is financially healthy or financially unhealthy? Which results indicate this?

What might be the cause(s) of the business’s financial success or failure?

Is more informa�on needed to determine the business’s financial health? If so, which pieces of informa�on might s�ll

be needed?

Short-Term Financing: Explain how poten�al short-term financing sources could help the business raise needed funds to

improve its financial health. Base your response on the business’s current financial informa�on.

The following resources can help you complete this milestone:

Video: Mergent Online: Public Company Financials (4:46)

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FIN-320-T1991 Principles of Finance 21EW1 TM

9/26/21, 9:55 AM Project Two Milestone Guidelines and Rubric - FIN-320-T1991 Principles of Finance 21EW1

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Watch this video from the Shapiro Library to learn more about how to access and use Mergent Online. Although this video shows

informa�on on the ‘As Reported Currency’ page within the Company Financials tab, for the purposes of this course, the best op�on

for loca�ng financial data can be accessed by clicking on ‘Standardized’ beneath the ‘Company Financials’ tab. This will allow you to

access the Standardized Annual Balance Sheet.

Shapiro Library FAQ: How Do I Cite a Company Profile From Mergent Online?

Use this resource to help answer any ques�ons you have about ci�ng from Mergent Online.

Guidelines for Submission

Your submission should be a 2 to 3 page Word document with 12-point Times New Roman font, double spacing, and one-inch

margins. You must also submit the Project Two Financial Formulas spreadsheet (which you will fill in completely as part of your

Project Two submission) and the Excel files for your downloaded balance sheet, income statement, and cash flow statement from

Mergent Online.

Project Two Milestone Two Rubric

Criteria Exemplary (100%) Proficient (85%) Needs Improvement

(55%) Not Evident (0%) Value

Financial

Calcula�ons

N/A Calculates accurate

financial ra�os to

assess the business’s

current financial

health (100%)

Shows progress

toward proficiency,

but with errors or

omissions; areas for

improvement may

include calcula�ng

more accurate

financial ra�os to

assess the business’s

current financial

health (85%)

Does not a�empt

criterion (0%)

21

Fiscal Quarter

Comparison

Exceeds proficiency

in an excep�onally

clear, insigh�ul,

sophis�cated, or

crea�ve manner

(100%)

Summarizes the

differences between

the results from the

financial calcula�ons

of the most recent

fiscal quarter and the

results of the same

financial calcula�ons

of the same fiscal

quarter from a year

before for the

chosen business

(85%)

Shows progress

toward proficiency,

but with errors or

omissions; areas for

improvement may

include summarizing

more differences

between the results

from the financial

calcula�ons of the

most recent fiscal

quarter and the

results of the same

financial calcula�ons

of the same fiscal

quarter from a year

before for the

chosen business

(55%)

Does not a�empt

criterion (0%)

21

Comparison

Analysis

Exceeds proficiency

in an excep�onally

clear, insigh�ul,

sophis�cated, or

crea�ve manner

(100%)

Explains what the

results of the

calcula�ons and the

comparison indicate

about the business’s

current financial

Shows progress

toward proficiency,

but with errors or

omissions; areas for

improvement may

include explaining in

Does not a�empt

criterion (0%)

22

9/26/21, 9:55 AM Project Two Milestone Guidelines and Rubric - FIN-320-T1991 Principles of Finance 21EW1

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health, providing

examples to support

the explana�on

(85%)

more detail what the

results of the

calcula�ons and the

comparison indicate

about the business’s

current financial

health or providing

more relevant

examples to support

the explana�on

(55%)

Short-Term

Financing

Exceeds proficiency

in an excep�onally

clear, insigh�ul,

sophis�cated, or

crea�ve manner

(100%)

Explains how

poten�al short-term

financing sources

could help the

business raise

needed funds to

improve its financial

health and bases the

response on the

business’s current

financial informa�on

(85%)

Shows progress

toward proficiency,

but with errors or

omissions; areas for

improvement may

include explaining in

more detail how

poten�al short-term

financing sources

could help the

business raise

needed funds to

improve its financial

health, or basing the

response on the

business’s current

financial informa�on

(55%)

Does not a�empt

criterion (0%)

21

Ar�cula�on of

Response

Exceeds proficiency

in an excep�onally

clear, insigh�ul,

sophis�cated, or

crea�ve manner

(100%)

Clearly conveys

meaning with correct

grammar, sentence

structure, and

spelling,

demonstra�ng an

understanding of

audience and

purpose (85%)

Shows progress

toward proficiency,

but with errors in

grammar, sentence

structure, and

spelling, nega�vely

impac�ng readability

(55%)

Submission has

cri�cal errors in

grammar, sentence

structure, and

spelling, preven�ng

understanding of

ideas (0%)

10

Cita�ons and

A�ribu�ons

Uses cita�ons for

ideas requiring

a�ribu�on, with few

or no minor errors

(100%)

Uses cita�ons for

ideas requiring

a�ribu�on, with

consistent minor

errors (85%)r

Uses cita�ons for

ideas requiring

a�ribu�on, with

major errors (55%)

Does not use

cita�ons for ideas

requiring a�ribu�on

(0%)

5

Total: 100%

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