Evaluation of Corporate Performance
The Final Project will involve applying the concepts learned in class
to an analysis of a company using data from its annual report. Using the
concepts from this course, you will analyze the strengths and
weaknesses of the company and write a report either recommending or not
recommending purchase of the company stock.
Research
Tip: The “Mergent” database in the Ashford University Library contains
company profiles and financial information for publicly traded companies
and their competitors. To access this database enter the Ashford
Library and select “Find Articles and More” in the top menu panel. Next,
select “Databases A-Z” and go to section “M” for “Mergent”. For help
with using Mergent, use Mergent Online Quick Tips.
For help with reading an annual report access this handy guide from Money Chimp.
The completed report should include:
- An introduction to the company, including background information.
- A complete and thorough financial statement review.
- Pro
Forma financial statements (Balance Sheet and Income Statement) for the
next fiscal year, assuming a 10 percent growth rate in sales and Cost
of Goods Sold (COGS) for the next year. - Complete ratio analysis for the last fiscal year using at least two ratios from each of the following categories:
- Liquidity
- Financial leverage
- Asset management
- Profitability
- Market value
- A calculation of Return on Equity (ROE) using the DuPont system.
- Assessment of management performance by calculating Economic Value Added (EVA).
- A
synopsis of your findings, including your recommendations and rationale
for whether or not to purchase stock from this company.
This report should be eight to ten pages long (excluding title page and
reference pages) using APA 6th edition formatting guidelines. Support
your findings and recommendations with evidence from at least five
scholarly resources, such as the textbook, industry reports, and
articles from the Ashford University library.
