Financial Analysis Case Assignment 2: Urgent

Sirius XM Satellite Radio, Inc., in 2014:

On Track to Succeed After a Near-Death Experience?

It is November 26, 2017, and the Board of Directors of Sirius XM Satellite Radio has employed

you as a consultant to assess the company’s overall situation and recommend a set of actions to

improve the company’s future prospects. Please prepare a report to Sirius XM’s senior

executives that makes a list of action recommendations that Sirius XM needs to follow into order

to meet a number of strategic objectives.

The strategic objectives of your report are as follows:

(1) To conduct a comprehensive review of the firm’s financial statements; and

(2) Target a $9/share price for the company’s common stock by the year 2020; and

(3) Return the company’s debt load to manageable levels, and to no more than a 4:1 ratio of the

firm’s total debt load to operating cash flow by the year 2020.

When making your recommendations to the Board, it is important that you make

recommendations and set benchmarks in the following areas to achieve a $9/share common stock

price in 2020:

Total Revenue targets for 2018, 2019 and 2020

Earnings per Share (EPS) targets for 2018, 2019 and 2020

Recommendations regarding a strategy to achieve 2020 Revenue and EPS objectives

Your report should be prepared as a 5 page Executive Summary of Recommendations. Your

recommendations should be specific and contain numerical, time-based targets and be clearly

supported by your analysis of the company’s financial situation. You may supplement your 5

page summary with an appendix that contains (a) an analysis of the company’s financial

statements and/or pro-forma financial projections and (b) other appendices that you consider

appropriate. You may also include a table of References to sources that you use in your

Executive Summary.

Case Submission:

 Create your summary as a Word document and submit by clicking the title of this assignment

and attaching your saved document to the link provided. Please use Times New Roman, 12pt.

Font, Single and/or Double Space.

Notes:  Five pages MAXIMUM for your Executive Summary of Recommendations. This five page

maximum does not include any Appendices or the Reference list.

 It is strongly suggested that you cite your sources in your recommendations and provide a

reference list in your appendices.

 Please use the Executive Summary template that is provided to make your recommendations.