# financial analysis mini project

Dec 8th, 2014
SoccerBoss
Category:
Price: \$200 USD

Question description

The financial analysis project is designed to develop your ability to (1) understand and analyze

published financial reports and (2) make a recommendation to investors regarding the financial

condition of a public company.

This project can be completed entirely in Microsoft Excel. You should use Mergent Online to download

the appropriate financial statements, and can include those statements in the Excel file with cell

references in the formulas to guard against mathematical errors.

to double-check your calculations. Be sure to include your results as well as a detailed

explanation/interpretation of the information.

Any use of outside reference materials should be cited.

The bulk of your grade will be based on your ability to perform the requested analyses and provide an

accurate interpretation of the results. Financial analysis includes not just the ability to obtain the

correct results, but also the ability to describe and interpret what the results mean in terms of

increasing the understanding of the available data.

Primary: Starbucks (SBUX) (PICK A DIFFERENT COMPANY, THIS IS JUST AN EXAMPLE)

Competitor: Select a competitor from those identified by Mergent Online

1. Calculate the following ratios needed to assess liquidity and interpret the results. This should

include the last 3 years of ratios for the company and the last 3 years of ratios for the

competitor. What trends are there? (approx. 1/2 page single spaced 12 pt. in Word doc)

a. Current Ratio

b. Acid-Test (Quick) Ratio

c. Receivables Turnover

d. Inventory Turnover

e. Asset Turnover

2. Calculate the following ratios needed to assess long-term debt-paying ability and interpret the

results. This should include the last 3 years of ratios for the company and the last 3 years of

ratios for the competitor. What trends are there? (approx. 1/2 page single spaced 12 pt. in Word doc)

a. Times Interest Earned

b. Debt to Total Assets Ratio

c. Book Value per Share

3. Calculate the following ratios needed to assess profitability and interpret the results. This

should include the last 3 years of ratios for the company and the last 3 years of ratios for the

competitor. What trends are there? (approx. 1/2 page single spaced 12 pt. in Word doc)

a. Profit Margin on Sales

b. Rate of Return on Assets

c. Rate of Return on Common Stock Equity

d. Earnings per Share

e. Payout Ratio

4. Which company would you invest in? What are the reasons for your decisions? This should be

based on financial analysis and significant facts. (approx. 1 page single spaced 12 pt. in Word doc)

(Top Tutor) Daniel C.
(997)
School: Duke University

Studypool has helped 1,244,100 students

## Review from our student for this Answer

FratBro23
Dec 8th, 2014
"This tutor is great!"

1822 tutors are online

Brown University

1271 Tutors

California Institute of Technology

2131 Tutors

Carnegie Mellon University

982 Tutors

Columbia University

1256 Tutors

Dartmouth University

2113 Tutors

Emory University

2279 Tutors

Harvard University

599 Tutors

Massachusetts Institute of Technology

2319 Tutors

New York University

1645 Tutors

Notre Dam University

1911 Tutors

Oklahoma University

2122 Tutors

Pennsylvania State University

932 Tutors

Princeton University

1211 Tutors

Stanford University

983 Tutors

University of California

1282 Tutors

Oxford University

123 Tutors

Yale University

2325 Tutors