Vtech Holdings Limited financial analysis report discussion

Anonymous
timer Asked: Feb 1st, 2019
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Question Description

Please see attached paper for detail of assignment.

7-8 page financial analysis report must be written properly. They must include a title page, a

table of contents, exhibits, and a reference page, which do not count toward the 7-8 page

minimum. For the final report, information sources from the web, etc. must be cited properly,

using APA style. This means that every table that you cut and pasted or typed from the web must

have a source at the bottom of the table AND that citing must also be included in a reference page

at the end of the report.


The parts of the research paper are discussed below.

The completed report (parts 1 through 8) is

due Week 7.

Your project should include:

1. An overview of the corporation.

o

Provide general information regarding the type of business, products and/or services, location

of headquarters, name of CEO, number of employees, and countries of operation, etc.

2. The latest financial statements

o

Get the income statement, balance sheet, and cash flow statement for the past fiscal year. Cut

and paste them in your report as exhibits. Do not forget to cite the source under each

statement.

o

If you cannot cut and paste them, you may have to type in the information in a table in your

report.

3. A summary of each financial statement

o

Take each statement and state the key parts in words. Tell a story from each of the financial

statements. For example, for the income statement, the story starts like, “Total Revenues in

2010 were $10 billion, while Cost of Goods Sold were $8 billion, leaving a gross profit margin

of $2 billion, or 20 percent of total revenues....After taking out interest and taxes from EBIT,

the net income was $0.5 billion, or 5 percent of total revenues.”

4. Ratio calculation (include 3 major types of ratios).

o

Organization of this section is based on the THREE types of ratios listed in the text

book. Calculate the ratios from the financial statements in part c above using Excel or your

calculator and present them in a table for the most recent 2 years, with industry benchmarks

for each year.

o

If applicable and/or helpful to your analysis, find industry financial ratios online (e.g.

Yahoo.com) and compare your corporation’s ratios to these industry ratios.

5. For you to decide if a corporation’s stock is a good buy or sell, you must forecast several key

variables, including the stock price.

o

Use historical prices (3 years of monthly data recommended) and forecast the stock price for

the next year. Use a moving average, etc. to create your forecast.

o

Create a graph from the historical data and show your forecast on the same graph. You can add

a trend line to the graph to help you with a forecast. Include the graph in your report.

o

You need to say specifically what the forecasted value of the stock price is.

6. Recommendation regarding the future of these corporations.

o

Is the stock a good buy, average buy, or a poor buy (implying a good sell)?

o

Include a justification of your recommendation based on your analysis and research.

The steps in preparation of financial analysis report include the following: 1. Select a publicly held company. 2. This company should be easily classifiable into an industry, so you can compare it to industry averages. In other words, no conglomerates, or companies that are involved in multiple industries. 3. Obtain the firm’s balance sheet, income statement, and statement of cash flows for the past 3 years. Download or read the firm’s annual report. 4. Go to: http://www.sec.gov/edgar/searchedgar/webusers.htm. Research EDGAR’s database for additional SEC report filings: 8-k, 10-Q. o The following table is the type of Excel or Word table that should be used to gather and report your ratio and financial performance data. You should pick 3 of the 5 financial diagnostic categories, and use those 3 in your analysis. Financial Diagnostic Categories Chosen Company vs. • 1. Liquidity of Short-Term Assets • • • 2. Long-Term Debt-paying Ability • • • 3. Profitability • • • 4. Asset Utilization / Management Efficiency • • • 5. Market Measures • • Benchmark Competitor Current Ratio Cash Ratio Quick Ratio • Debt Ratio Debt-equity Ratio Times Interest Earned • • • • • Net Income / Sales (Profit • Margin) Net Income / Assets (ROA) • Net Income / Shareholder Equity • (ROE) Total Asset Turnover Inventory Turnover Measures Accounts Receivable Turnover • Price / Earnings Ratio Earnings per Common Share Dividend Payout • • • • • Current Ratio Cash Ratio Quick Ratio Debt Ratio Debt-equity Ratio Times Interest Earned Net Income / Sales (Profit Margin) Net Income / Assets (ROA) Net Income / Shareholder Equity (ROE) Total Asset Turnover Inventory Turnover Measures Accounts Receivable Turnover Price / Earnings Ratio Earnings per Common Share Dividend Payout Use 3 ratios per diagnostic category. Place your ratio calculations in the table for your selected companies—primary company and industry benchmarks. Using 3 diagnostic categories, and 3 ratios to assess each category, results in 9 ratio measures per company that will be compared side by side. 5. To validate your research, 3 years of data should be analyzed. 6. The 7-8 page financial analysis report must be written properly. They must include a title page, a table of contents, exhibits, and a reference page, which do not count toward the 7-8 page minimum. For the final report, information sources from the web, etc. must be cited properly, using APA style. This means that every table that you cut and pasted or typed from the web must have a source at the bottom of the table AND that citing must also be included in a reference page at the end of the report. The parts of the research paper are discussed below. The completed report (parts 1 through 8) is due Week 7. Your project should include: 1. An overview of the corporation. o Provide general information regarding the type of business, products and/or services, location of headquarters, name of CEO, number of employees, and countries of operation, etc. 2. The latest financial statements o Get the income statement, balance sheet, and cash flow statement for the past fiscal year. Cut and paste them in your report as exhibits. Do not forget to cite the source under each statement. o If you cannot cut and paste them, you may have to type in the information in a table in your report. 3. A summary of each financial statement o Take each statement and state the key parts in words. Tell a story from each of the financial statements. For example, for the income statement, the story starts like, “Total Revenues in 2010 were $10 billion, while Cost of Goods Sold were $8 billion, leaving a gross profit margin of $2 billion, or 20 percent of total revenues….After taking out interest and taxes from EBIT, the net income was $0.5 billion, or 5 percent of total revenues.” 4. Ratio calculation (include 3 major types of ratios). o Organization of this section is based on the THREE types of ratios listed in the text book. Calculate the ratios from the financial statements in part c above using Excel or your calculator and present them in a table for the most recent 2 years, with industry benchmarks for each year. o If applicable and/or helpful to your analysis, find industry financial ratios online (e.g. Yahoo.com) and compare your corporation’s ratios to these industry ratios. 5. For you to decide if a corporation’s stock is a good buy or sell, you must forecast several key variables, including the stock price. o Use historical prices (3 years of monthly data recommended) and forecast the stock price for the next year. Use a moving average, etc. to create your forecast. o Create a graph from the historical data and show your forecast on the same graph. You can add a trend line to the graph to help you with a forecast. Include the graph in your report. o You need to say specifically what the forecasted value of the stock price is. 6. Recommendation regarding the future of these corporations. o Is the stock a good buy, average buy, or a poor buy (implying a good sell)? o Include a justification of your recommendation based on your analysis and research.

Tutor Answer

Joelda
School: UIUC

Attached.

Running Head: FINANCIAL ANALYSIS REPORT

Vtech Holdings Limited
Student Name
Institutional Affiliation

1

FINANCIAL ANALYSIS REPORT

2

Contents
Overview of the Corporation .................................................................................................................. 3
Summary of each financial statement ..................................................................................................... 3
Ratio calculation ..................................................................................................................................... 4
Liquidity of Short-Term Assets ............................................................................................................ 5
Long-term Debt-Paying Ability .......................................................................................................... 6
Market measures ................................................................................................................................. 6
Forecast ................................................................................................................................................... 6
Recommendation .................................................................................................................................. 10
Image 1.............................................................................................................................................. 11
Image 2.............................................................................................................................................. 12
Image 3.............................................................................................................................................. 13
Image 4.............................................................................................................................................. 14
References ............................................................................................................................................. 15

FINANCIAL ANALYSIS REPORT

3

Overview of the Corporation
Vtech Holdings Limited is a company which deals with electronic learning products
based on toddler and preschool level up to the highest level. It also deals with the
manufacture of wireless phones. The company also gets contracts to offer manufacturing
services of different types of electronics. Therefore the company offers world-class or quality
different types of electronic products and services to its customers. With that, it invests a lot
in R&D as well as launching various new products yearly under its brand with the help of
global dist...

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Review

Anonymous
Good stuff. Would use again.

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