FINC 430 Week 2/3 Discussions and Projects

Quiz-Essay Paper 1 – Financial Ratio Analysis and Descriptive Statistics

INTRODUCTION. The Financial Ratio Analysis and Descriptive Statistics paper is important because it

strengthens your understanding of subject company historical performance measured by variation of key

ratios and equation inputs. It is also quite helpful beyond the course, as it is a type of combined analysis

often found in the professional world. For example, standard deviation analysis helps us understand the

dispersion of reported financial observations relative to the mean – a key factor to consider if setting up

a representative performance simulation or planning to model a forecast of future financial results.

If you discover issues with your selected company’s financial statements, please let me know. Additional

information on writing the QEP is posted in our course, under the Content-Student Resources-Checklists

– be sure to take advantage of this, as it will prove quite helpful for this and following papers. Finally,

although we don’t grade your writing process directly– plan to start on time with preliminary research,

draft, revision(s), and finalize steps.

Contact EWC (Resources Menu-EWC) to make sure your paper is written in a manner that is in scope

and carries the most impact. Let me know if you feel like you might be getting stuck or need clarification

on developing analytic perceptions or have scope questions.

SPECIFICS OF THE ASSIGNMENT. In this assignment, you will write a 1-2 page narrative analysis of your selected company’s key financial ratio profile in relation to income method and market method valuation. Base your analysis on descriptive statistical analysis of 3-5 years of historical data. No year over year, point to point recitations please. Calculate and use descriptive statistics (e.g., mean, median, standard deviation, geometric mean, rolling average, min, max, etc.) see example Excel worksheet [Content] or other sources. Use descriptive statistics in your narrative analysis for best grade (e.g., discuss mean relative to median, standard deviation, reversion to the mean, scenarios, rolling average trend, etc.). Your paper must include thesis-evidence-discussion-conclusion. Use 1-2 each: performance return ratios, price ratios, maximum sustainable growth rate and operating and financial leverage ratio (note: solvency and liquidity concerns are out of scope); Use your textbook to verify ratio equations. TECHNICAL: Start your assignment on time: Friday, August 21, 2015 Due date: August 30, 2015 draft by: Friday, August ,28, 2015 final – August 30, 2015; 12-point Times New Roman font … must include an APA-formatted Title Page; double-spaced; Place Tables and charts in Appendix. Use Company 10k and UMUC Library Mergent Online only for financial statement information. Show all work-calculations; Cite all sources including page numbers where appropriate.