attached assignment details.

a. Define your purpose

i. Assess the sustainability of the business model and performance (can they provide an adequate return to investors?)

b. Define your context:

i. Understand industry economic dynamics

ii. Understand the company specific business model

1. Operating: day to day structure

2. Financial; sources of capital

2. Balance sheet analysis: structure

a. Asset organization

i. Connect to the business model

b. Debt/equity structure

i. Connect to financial model

3. Balance sheet analysis: trend (horizontal view)

a. Connect to the business model

b. Assets then debt/equity

4. Income statement analysis

a. Sales volume and trend

b. Profit structure and trends

i. Extraordinary items

5. Ratios: focus on the key ratios

a. DuPont

i. Profitability

ii. Turnover

iii. Leverage

b. Profitability

c. Efficiency

d. Leverage

6. Connections

a. Profitability connected to turnover?

b. Investment strategy connected to sales volume (turnover)>>> ROA?

c. Profitability and leverage?

7. Conclusions

a. Sustainable strengths

b. Challenges/opportunities to improve

c. Land mines

d. Time bombs