Analyze the financial statements of JM Smuckers

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Xtybire

Business Finance

OMM622 Financial Decision making

ashford university

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Week 6 - Final Paper

J.M. Smuckers (JMS) Financial Statement Analysis

Prepare an eight- to ten-page fundamental financial analysis (excluding appendices, title page, abstract, and references page) that will cover each of the following broad areas based on the financial statements of your chosen company: J.M. Smuckers:

  • Provide a background of the firm, industry, economy, and outlook for the future.
  • Analyze the short term liquidity of the firm.
  • Analyze the operating efficiency of the firm.
  • Analyze the capital structure of the firm.
  • Analyze the profitability of the firm.
  • Conclude with recommendations for the future analysis of the company (trend analysis).

Writing the Final Paper
The paper

  • Must be eight to ten double-spaced pages in length (not including title and references pages) and formatted according to APA style as outlined in the Ashford Writing Center (Links to an external site.)Links to an external site..
  • Must include a separate title page with the following:
    • Title of paper
    • Student’s name
    • Course name and number
    • Instructor’s name
    • Date submitted
  • Must begin with an introductory paragraph that has a succinct thesis statement.
  • Must address the topic of the paper with critical thought.
  • Must end with a conclusion that reaffirms your thesis.
  • Must use at least three scholarly sources from the Ashford University Library, in addition to the text.
  • Must document all sources in APA style as outlined in the Ashford Writing Center.
  • Must include a separate references page that is formatted according to APA style as outlined in the Ashford Writing Center.

Unformatted Attachment Preview

Suckers 2018 Annual Report http://www.jmsmucker.com/investor-relations/smuckers-annual-report J.M. Smucker (JMS) is a well-respected American company founded in 1897. The iconic Smucker and Smucker-owned brand names have reached far beyond consumer foods; most notably jellies, jams, and preserves. The Company now offers a wide variety of quality products to include natural beverages, coffee, pet food and pet snacks. Forbes (2018) ranked J.M. Smucker # 266 for America’s largest Public Companies and is recognized as a Fortune 500 Company. In 2017 Smucker sales reached $7.4 billion with a $1.3 billion in profits and $15.3 billion. Their current Market value is $13.7 billion. This brand has been led by five generations of the founding family – the Smucker’s - since it was founded 120 years ago. Deep in history, Jerome Monroe Smucker founded a cider mill in Orville, Ohio crafting apple cider and apple butter for the locals. From his early door to door delivery of stone crocks to the Smucker’s fruit spreads brought in stores today, his commitment to continued quality assurance is evident by the JM Smucker signature on each jar. “With a name like Smucker’s, it has to be good slogan” is recognized across North America. Their marketing, promotions, and advertisements clearly communicate to the consumer the Company’s commitment to remain rooted in their fundamental principles and beliefs of quality, people, ethics, growth, and independence. A financial analyst will find J.M. Smucker has a balanced portfolio posting some increases and decreases in their diversified product sales. Their brand holds a leading position in several categories: fruit spreads, JIF Peanut butter, organic peanut butter. Although the analyst may give JMS a passing grade on P/E (Price Earning) ratio, revenue growth vs. EPS (earnings per share) growth, sales growth rate and positive current quarter earnings, JMS received a failing grade on the earnings growth rate for the past several quarters, earnings persistence, and long-term EPS growth. SJM had two-quarters of skimpy growth last year, however, sales are predicted to top $8 billion this year (Zweig, 2018). J.M. Smucker’s annual report is visually appealing and presents the reader with recognizable images of brand name labels and happy people using a combination of beautiful photography and data visualization. Impactful bullets highlighting milestone and celebrating successes keeps the reader interested and engaged. According to Crooks (2014), the annual report should talk about the people because the audience wants to know about the humans behind the brands. JMS’s report presentation is very personal from a customer perspective. However, the people behind the products are not adequately mentioned nor pictured. Overall the Annual report is quite “busy” and shares a lot of information regarding both big and small achievements, perhaps too much. Smucker’s has successfully used their annual report to connect with their audience through quality product labels, photos depicting their family-oriented culture, and their commitment to maintaining a positive community footprint. They have achieved global branding through customer loyalty, and their annual report reflects a commitment to quality, excellence and robust execution of their business strategy resulting in optimal financial performance. My notes about info that stands out on the balance sheet: • It appears they are moving in the right direction. • Cash and position is improving as their inventory levels continue to move in the right direction. • Fixed assets would lead you to believe they are investing for growth. • Current liabilities are decreasing at a faster pace than their Total Asset position. • All of this leads to a better Stock holder equity position. References: America's largest private companies (2018) In Forbes.com. Retrieved August 2, 2018, from https://www.forbes.com/largest-private-companies/list/ Crooks, R. (2014, January). 12 lessons from Warby Parker's annual report. Forbes. Retrieved from http://www.forbes.com/sites/rosscrooks/2014/01/30/12-lessons-from-warby-parkersannual-report/ (Links to an external site.)Links to an external site. (2018, June 18). In The J.M. Smucker Company. Retrieved August 2, 2018, from http://www.jmsmucker.com/investor-relations/smuckers-annual-report (Links to an external site.)Links to an external site. Zweig, M. (2018, August 2). J.M. Smucker Company (The) (SJM). In Nasdaq.com. Retrieved August 2, 2018, from https://www.nasdaq.com/symbol/sjm/guru-analysis/zweig Total Possible Score: 25.00 Provides a Background of the Firm, the Industry, the Economy, and the Outlook for the Future Total: 7.00 Distinguished - Provides an accurate and thorough background of the firm, the industry, the economy, and the outlook for the future. Proficient - Provides a background of the firm, the industry, the economy, and the outlook for the future. The background has a few inaccuracies or minor details are missing. Basic - Provides a limited background of the firm, the industry, economy, and the outlook for the future. The background has several inaccuracies and/or relevant details are missing. Below Expectations - Attempts to provide a background of the firm, the industry, economy, and future outlook; however, the background has many inaccuracies and/or significant details are missing. Non-Performance - The background of the firm, the industry, the economy, and the outlook for the future are either nonexistent or lack the components described in the assignment instructions. Analyzes the Short Term Liquidity, Operating Efficiency, Capital Structure and Profitability of the Firm Using the Financial Statements Total: 9.00 Distinguished - Accurately and thoroughly analyzes the firm's financial statements, including short term liquidity, operating efficiency, capital structure, and profitability. Proficient - Analyzes the firm's financial statements, including short term liquidity, operating efficiency, capital structure, and profitability. The analysis has a few inaccuracies or minor details are missing. Basic - Partially analyzes the firm's financial statements, including short term liquidity, operating efficiency, capital structure, and profitability. The analysis has several inaccuracies and/or relevant details are missing. Below Expectations - Attempts to analyze the firm's financial statements, including short term liquidity, operating efficiency, capital structure, and profitability; however, the analysis has many few inaccuracies and/or significant details are missing. Non-Performance - The analysis of the firm's financial statements is either nonexistent or lacks the components described in the assignment instructions. Concludes With Recommendations for Future Analysis of the Firm(Trend Analysis) Total: 7.00 Distinguished - Concludes with accurate and thorough recommendations for future analysis of the firm’s financial status, including trend analysis. Proficient - Concludes with recommendations for future analysis of the firm's financial status, including trend analysis. The recommendations have a few inaccuracies or minor details are missing. Basic - Concludes with limited recommendations for future analysis of the firm's financial status, including trend analysis. The recommendations have several inaccuracies and/or relevant details are missing. Below Expectations - Attempts to conclude with recommendations for future analysis of the firm’s financial status, including trend analysis; however, the recommendation have many inaccuracies and/or significant details are missing. Non-Performance - The recommendations for future analysis are either nonexistent or lacks the components described in the assignment instructions. Critical Thinking: Explanation of Issues Total: 0.50 Distinguished - Clearly and comprehensively explains the issue to be considered, delivering all relevant information necessary for a full understanding. Proficient - Clearly explains the issue to be considered, delivering enough relevant information for an adequate understanding. Basic - Briefly explains the issue to be considered, delivering minimal information for a basic understanding. Below Expectations - Briefly explains the issue to be considered, but may not deliver additional information necessary for a basic understanding. Non-Performance - The assignment is either nonexistent or lacks the components described in the instructions. Written Communication: Content Development Total: 0.50 Distinguished - Uses appropriate, pertinent, and persuasive content to discover and develop sophisticated ideas within the context of the discipline, shaping the work as a whole. Proficient - Uses appropriate and pertinent content to discover ideas within the context of the discipline, shaping the work as a whole. Basic - Uses appropriate and pertinent content but does not apply it toward discovering or developing ideas. Overall, content assists in shaping the written work. Below Expectations - Uses content, though it may be unrelated or inappropriate to the topic. Content does not contribute toward the development of the written work and may distract the reader from its purpose. Non-Performance - The assignment is either nonexistent or lacks the components described in the instructions. Written Communication: Control of Syntax and Mechanics Total: 0.25 Distinguished - Displays meticulous comprehension and organization of syntax and mechanics, such as spelling and grammar. Written work contains no errors and is very easy to understand. Proficient - Displays comprehension and organization of syntax and mechanics, such as spelling and grammar. Written work contains only a few minor errors and is mostly easy to understand. Basic - Displays basic comprehension of syntax and mechanics, such as spelling and grammar. Written work contains a few errors which may slightly distract the reader. Below Expectations - Fails to display basic comprehension of syntax or mechanics, such as spelling and grammar. Written work contains major errors which distract the reader. Non-Performance - The assignment is either nonexistent or lacks the components described in the instructions. Written Communication: APA Formatting Total: 0.25 Distinguished - Accurately uses APA formatting consistently throughout the paper, title page, and reference page. Proficient - Exhibits APA formatting throughout the paper. However, layout contains a few minor errors. Basic - Exhibits limited knowledge of APA formatting throughout the paper. However, layout does not meet all APA requirements. Below Expectations - Fails to exhibit basic knowledge of APA formatting. There are frequent errors, making the layout difficult to distinguish as APA. Non-Performance - The assignment is either nonexistent or lacks the components described in the instructions. Written Communication: Page Requirement Total: 0.25 Distinguished - The length of the paper is equivalent to the required number of correctly formatted pages. Proficient - The length of the paper is nearly equivalent to the required number of correctly formatted pages. Basic - The length of the paper is equivalent to at least three quarters of the required number of correctly formatted pages. Below Expectations - The length of the paper is equivalent to at least one half of the required number of correctly formatted pages. Non-Performance - The assignment is either nonexistent or lacks the components described in the instructions. Written Communication: Resource Requirement Total: 0.25 Distinguished - Uses more than the required number of scholarly sources, providing compelling evidence to support ideas. All sources on the reference page are used and cited correctly within the body of the assignment. Proficient - Uses the required number of scholarly sources to support ideas. All sources on the reference page are used and cited correctly within the body of the assignment. Basic - Uses less than the required number of sources to support ideas. Some sources may not be scholarly. Most sources on the reference page are used within the body of the assignment. Citations may not be formatted correctly. Below Expectations - Uses an inadequate number of sources that provide little or no support for ideas. Sources used may not be scholarly. Most sources on the reference page are not used within the body of the assignment. Citations are not formatted correctly. Non-Performance - The assignment is either nonexistent or lacks the components described in the instructions. Powered by
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