Finacial accounting

MMG 520 – Financial Accounting – Mini Project #2

This project is a case study that requires you to obtain annual reports for one company and analyze key trends, performance drivers, company and specific industry measures, and demonstrate competency in common financial ratios.

The project is comprised of a written presentation with supporting financial spreadsheets as deemed necessary to support the work.

Project Outline – There are several sections and related questions

For your chosen company perform the following analysis (3 years history):

There are several areas that you are required to analyze using a combination of ratio analysis, research, and trend analysis.

· Ratio Calculations: Complete the standard set of financial ratios found in Chapter 13 of the text.

· Value Drivers: There are a number of ratios or metrics that drive a company’s ability to make money. Showcase analysis on historical revenue growth rate, operating margin, and tax rate. Identify any other relevant information that supports an analytical understanding of differences from year to year if there are meaningful year over year trend outliers.

· Profitability: Is the company profitable? What is driving profitability? What does the company do with it’s profits?

· Return on Assets/Capital: Does the company make efficient use of its assets? Calculate and explain differences between ROA, and ROIC.

· Industry Specific: What are some industry specific metrics that are presented in the 10K or annual report? What do they measure? How do they complement traditional financial ratios? Find company financial press briefings or related news that highlights the perspective from their company President or CFO what trends are impacting their business results.