financial statement analysis

BCO312 FINANCIAL STATEMENT ANALYSIS Task brief & rubrics

FINAL ASSIGNMENT:

Follow three public companies traded in the NYSE that you would like to invest in, different from the ones analyzed in the Mid-Term Assignment. Analyze the last financial statements available of each company (income statements, cash flow statements and balance sheets), and answer the following questions:

i. At a first sight through the income statement, how are the results of each company (profits vs losses)? ii. How do you think, in your opinion, that the P&L results of each company could be improved after analyzing its income

statement, taking into account the net sales and all costs and expenses incurred by the company? iii. Have a look on the three financial statements available for each company. Analyze and answer the following questions:

a. The liquidity of each company through the liquidity ratios and explain your findings. b. The profitability of each company through the profitability ratios and explain your findings. c. The market value of each company through the market ratios and explain your findings.

iv. Explain your conclusions of each one of the three chosen companies taking into account the analysis made above. v. Would you invest in each one of these companies? Why?

vi. Finally, have a look on the main financial journals. Which investment/s would you like to make and why?

Submission: deadline is Sunday 18th July, 2021 at 23:59 CET – Via Moodle (Turnitin).

Weight: 60% 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.