Sustainability, accounting homework help

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Business Finance

Description

FINC225-1603A-03Financial Statement Analysis
 

Individual Project

 Sustainability

 Mon, 8/1/16

Excel spreadsheet + a Word document (1–2 pages)

You have been hired as a junior financial analyst by a major, international consulting firm. For your first assignment, you have been asked by a senior financial analyst to demonstrate your skills by assessing the performance of a publicly trading company; preferably one with inventories and receivables. The senior analyst expects you to evaluate at least two years' worth of financial statements, but you know three years would be better in order to really understand the financial health of your subject company. Each week over the next five weeks, the senior analyst expects you to complete and submit at least one task associated with this assignment and to regularly discuss what you have been learning with you other junior associates, as they will be preforming the same project as you, albeit with a different company, and most likely in a different industry. 


Using the Lockheed Martin's company's financial statements, calculate and evaluate the firm’s sustainable growth rate (SGR) for the last 2–3 years, and summarize your findings in your paper. Be sure to address the following:

  • What are the sustainable growth rates for your subject company over the period that you studied?
  • How do they compare with the actual growth rates that the company experienced over the period studied?
  • What are the consequences faced by firms that grow at a rate that is not consistent with their sustainable rate?
  • If the firm grew at a rate above or below the SGR, how did it finance its excessive growth or reward its stockholders for the underperformance?
  • Based on your analysis, do you believe the firm's growth strategy is sound and maximizes the value of the firm with reasonable levels of risk? 

Be sure to document your statements with credible sources, in-text citations, and references using proper APA format.


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Explanation & Answer

Please find the completed work. Goodbye. 

Sales
Total Assets
Asset utilization rate

Lockheed Martin Corp Sustainable growth rate
2013
2014
45.36
45.6
Net income
36.19
37.07
Total Dividends
1.25
1.23
Dividend payout ratio

Net income
Total sales
Profitability rate

2.95
45.36
0.065

3.61
45.6
0.079

Total debt
Total equity
Financial utilization rate

31.27
4.92
6.356

33.67
3.4
9.903

Return on equity

0.516

0.96

Actual growth rate
2013
45.36

2014
45.6

sales
Actual growth rate

2013
2.95
3.45
0.855
85.50%
0.145

0.53%

Return on equity

0.516

Sustainable growth rate

7.48%

2014
3.61
4.16
0.868
86.80%
0.132

0.96
12.60%


Running Head: SUSTAINABILITY

1

SUSTAINABILITY
Student�...


Anonymous
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