Analyzing a Company's Financial Health

8/26/2020 Analyzing a Company's Financial Health - FINC 331 6383 Finance for the Nonfinancial Manager (2208)

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Analyzing a Company's Financial Health Must post first.

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The main goal of financial management is to maximize the wealth of the shareholders. In simple terms, this means the goal of any business is to use its resources efficiently while minimizing risk and earning the highest profits possible. How can investors determine if this goal is being met?  One method is to use financial statement analysis to evaluate a firm’s growth, level of debt, use of its assets to generate revenue, etc.  

Choose a publically traded company to research.  

Requirements

1. Use your company name as the title of your post. 2. Give a short summary of the main business operations. 3. Complete the table below using data from the company's Annual Report or

you can search MSNMoney.com or  YahooFinance.com).

2018               

  

2019            

 

Total Revenue (Sales)    

Net Income    

Total Assets    

Total Liabilities    

Total Equity    

Profit Margin (Net Income ÷ Total Revenue)    

Return on Equity (ROE) (Net Income ÷ Total Equity)    

Earnings per share (Net Income ÷ # shares

outstanding)

   

8/26/2020 Analyzing a Company's Financial Health - FINC 331 6383 Finance for the Nonfinancial Manager (2208)

https://learn.umgc.edu/d2l/le/510401/discussions/topics/3106721/View 2/2

4. In your post be sure to address the following:  Consider what issues over the last two years have impacted the firm’s financial position. Use this information to compare the report for this current year with the previous year(s). Generally speaking, did this company grow or decline from the previous year?  Be sure to explain your position. Do you believe that managers have accomplished the goal of maximizing shareholder wealth? Explain why you think this is so.

When you reply to TWO other classmates, be sure to address whether or not you agree with their analysis, and why.  You should have at least THREE posts for the week - one main thread and two replies.

Note - be sure to properly cite your resources using the APA style.