Assignment 3: Financial Statement Analysis
Maxi2020
JWMI_531_Assignment_3_Financial_Statement_Analysis.docx6
Activist Shareholder Letter
Student Name
Jack Welch Management Institute
Prof Name
JWI 531
Date
Instructions (delete this page prior to submission)
a. You are an investor writing an open letter to the BOD with suggestions for change. May be positive or negative in tone.
b. Highlight key financial data and urge management to take certain actions.
c. You can choose which ratios to analyze.
d. Your letter must clearly state your reasons for reaching out to the Board, your rationale for buying the stock, and your recommendations for changes going forward.
e. You must use the course material in your submission – concepts, ideas.
f. Must reference certain sections in the Course Guide instructions – Morningstar analyst report, annual report, etc.
g. Fundamental Analysis areas to consider for your recommendations.
Goal of Leaders.
Fundamental Approach
Why you invested in Salesforce.com
a. Brief recap of your reasons for buying the stock.
b. Is Salesforce.com a value stock or a growth stock?
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Value Investing |
Growth Investing |
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Category 1 |
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Category 2 |
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Other Notes |
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Summarize key product-specific metrics
Ratio Analysis and recommendations based on Morningstar and Annual Report show
a. General statements to the BOD based on your financial analysis.
b. Summary recommendations - what does management need to do differently to create more value?
Analysis and recommendations table – your supporting data
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Ratio/KPI #1 |
Comments |
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Ratio (KPI) Name and/or Ratio (KPI) % |
[i.e. Return on Assets (ROA; earnings divided by asset base]
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Analysis – What is the trend? How does it compare to the competition? Why does it need to improve? |
· [. . .] · [. . .] · [. . .]
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How to improve the ratio? How would you increase revenue and or lower costs? |
· [. . .] · [. . .] · [. . .]
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Other Notes – Do your recommendations increase or decrease risks? How to better manage those risks? Other? |
· [. . .] · [. . .] · [. . .]
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Ratio/KPI #2 |
Comments |
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Ratio (KPI) Name and/or Ratio (KPI) % |
[i.e. Return on Equity (ROE; earnings divided by equity] |
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Analysis – What is the trend? How does it compare to the competition? Why does it need to improve? |
· [. . .] · [. . .] · [. . .]
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How to improve the ratio? How would you increase revenue and or lower costs? |
· [. . .] · [. . .] · [. . .]
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Other Notes – Do your recommendations increase or decrease risks? How to better manage those risks? Other? |
· [. . .] · [. . .] · [. . .]
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Ratio/KPI #3 |
Comments |
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Ratio (KPI) Name and/or Ratio (KPI) % |
[i.e. Return on Assets (RO)A; earnings divided by asset base]
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Analysis – What is the trend? How does it compare to the competition? Why does it need to improve? |
· [. . .] · [. . .] · [. . .]
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How to improve the ratio? How would you increase revenue and or lower costs? |
· [. . .] · [. . .] · [. . .]
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Other Notes – Do your recommendations increase or decrease risks? How to better manage those risks? Other? |
· [. . .] · [. . .] · [. . .]
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Ratio/KPI #4 |
Comments |
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Ratio (KPI) Name and/or Ratio (KPI) % |
[i.e. Other Metric]
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Analysis – What is the trend? How does it compare to the competition? Why does it need to improve? |
· [. . .] · [. . .] · [. . .]
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How to improve the ratio? How would you increase revenue and or lower costs? |
· [. . .] · [. . .] · [. . .]
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Other Notes – Do your recommendations increase or decrease risks? How to better manage those risks? Other? |
· [. . .] · [. . .] · [. . .]
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Ratio/KPI #5 |
Comments |
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Ratio (KPI) Name and/or Ratio (KPI) % |
[i.e. Other Metric]
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Analysis – What is the trend? How does it compare to the competition? Why does it need to improve? |
· [. . .] · [. . .] · [. . .]
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How to improve the ratio? How would you increase revenue and or lower costs? |
· [. . .] · [. . .] · [. . .]
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Other Notes – Do your recommendations increase or decrease risks? How to better manage those risks? Other? |
· [. . .] · [. . .] · [. . .]
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Products and services analysis and recommendations (you can choose which ones to analyze – most profitable or least profitable)
a. General statements to the BOD about the products and services.
b. Summary recommendations - what does management need to do differently to create more value?
Analysis and recommendations table
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Product or Service 1 |
Product or Service 2 |
Product or Service 3 |
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Product Name |
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% of Revenue or other |
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Growth Projection % |
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Analysis – what are the trends in this product and the risks? |
· [. . .] · [. . .] · [. . .]
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· [. . .] · [. . .] · [. . .]
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· [. . .] · [. . .] · [. . .]
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What does the competitive landscape look like? |
· [. . .] · [. . .] · [. . .]
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· [. . .] · [. . .] · [. . .]
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· [. . .] · [. . .] · [. . .]
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Is this a product SFDC should invest in? Should they invest less in this product to focus on other products? |
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Other Notes – How should they increase revenue, lower costs, and manage risks? |
· [. . .] · [. . .] · [. . .]
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· [. . .] · [. . .] · [. . .]
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· [. . .] · [. . .] · [. . .]
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Closing Statements
a. Based on economic moats and your analysis of value, growth and profitability of Salesforce.com, conclude your letter with an explanation of your opinion about the company.
b. Is Salesforce.com a “great moat” company, a “good moat” company, or is it time to divest? Why?
References
Include references per APA and JWMI Policy
