Financial Statment Analysis

BCO312 FINANCIAL STATEMENT ANALYSIS Task brief & rubrics

MID-TERM ASSIGNMENT:

Follow three public companies traded in the NYSE within the same industry. Analyze the last financial statements available of each company, focusing on the balance sheets, and answer the following questions:

i. How has each company been financed (debt vs equity)? ii. Calculate each company’s debt-to-equity ratio.

iii. Compare the D/E ratios of the three companies and explain if you think that each company’s D/E ratio has been the best one in your opinion, or if it could be improved and how.

iv. Explain the advantages and risks that each company may have to face due to its D/E ratio. v. Finally, have a look on the current stock price of each company. After the analysis made and considering the current stock

price, would you invest in each company or not? Explain why.

Submission: deadline is Sunday 20th June, 2021 at 23:59 CET – Via Moodle (Turnitin).

Weight: 40% of your total grade for this subject.

Details and Formalities: • The Assignment is an individual task. • It shall be submitted in a word document format. If you need to attach some graphics or calculations you can do it as an appendix. • Wordcount: 3,000 words. • Cover, Table of Contents, References and Appendix are excluded of the total wordcount. • Font: Arial 11 pts. • Text alignment: Justified. • The in-text References and the Bibliography have to be in Harvard’s citation style.

Rubrics

Exceptional 90-100 Good 80-89 Fair 70-79 Marginal fail 60-69 Knowledge &

Understanding (30%)

Student demonstrates excellent understanding of key concepts and uses vocabulary in an entirely appropriate manner.

Student demonstrates good understanding of the task and mentions some relevant concepts and demonstrates use of the relevant vocabulary.

Student understands the task and provides minimum theory and/or some use of vocabulary.

Student understands the task and attempts to answer the question but does not mention key concepts or uses minimum amount of relevant vocabulary.

Application (30%) Student applies fully relevant knowledge from the topics delivered in class.

Student applies mostly relevant knowledge from the topics delivered in class.

Student applies some relevant knowledge from the topics delivered in class. Misunderstanding may be evident.

Student applies little relevant knowledge from the topics delivered in class. Misunderstands are evident.

Critical Thinking (30%)

Student critically assesses in excellent ways, drawing outstanding conclusions from relevant authors.

Student critically assesses in good ways, drawing conclusions from relevant authors and references.

Student provides some insights but stays on the surface of the topic. References may not be relevant.

Student makes little or none critical thinking insights, does not quote appropriate authors, and does not provide valid sources.

Communication (10%)

Student communicates their ideas extremely clearly and concisely, respecting word count, grammar and spellcheck.

Student communicates their ideas clearly and concisely, respecting word count, grammar and spellcheck.

Student communicates their ideas with some clarity and concision. It may be slightly over or under the wordcount limit. Some misspelling errors may be evident.

Student communicates their ideas in a somewhat unclear and unconcise way. Does not reach or does exceed wordcount excessively and misspelling errors are evident.