part 2 of the project 2, business and finance homework help

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2nd part of the first project that you completed

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FIN515—Week 3 Project: Financial Statement Analysis (continued) Continuing with your Week 2 Project, now your CEO after reviewing your earlier Week 2 PowerPoint submission has asked your team to complete an additional benchmark analysis task, before the upcoming Board Meeting. For this part of the project your team needs to do an analysis of the market and operational characteristics of your company and its financial profile. For this project, your team will need to select four companies that are direct competitors of your company. This sample selection should be based on revenue, profitability, market capitalization, market segment and product characteristics. This project is an additional benchmark data analytics project. The objective of this part of the project will be to do a comparative financial analysis of your company with the averages of the sample of four companies that will form your comparative group. The project deliverables will be another PowerPoint presentation to the CEO explaining the financial performance of your company compared to the sample of four comparable companies. The analysis should include the following deliverables: 1. An explanation of the logic of the selection of the four comparable group companies. Why were these companies selected? 2.Your team’s data extraction strategy, process and methodology. 3. A financial comparison of your company to the average of the comparator group on the following financial factors. a. Profitability b. Debt Management c. Liquidity d. Asset Management e. Value Creation – based on a the 3-year trend in Free Cash Flow In order to complete this project, your team has to select which ratios you are going to use in each of the five categories given above. In addition to that, your team will have to briefly explain why you are selecting the ratios you are using in your benchmark study. Then your team will have to collect the financial data for your company and the financial data of the four competitor companies. The data can be collected from two financial data bases such as, Yahoo Finance, Lexis Nexis, Plunkett, or bizstats.com. Your team will then have to collect and calculate the averages of the four competitor companies. (Please note that no ratio FIN515—Week 3 Project: Financial Statement Analysis (continued) calculations are required for each company, the ratios should be readily available on the websites noted above. You will only need to calculate the average ratios for the four companies combined.) Your team will proceed to developing a PowerPoint presentation presenting the comparison and your team’s commentary of what your team discerns from the comparison. PowerPoint should not have more than ten slides. Just like the previous project your team should use Webex or Voicethread, and prepare an oral presentation that presents your PowerPoint presentation. Each team member must participate in this presentation. FIN515—Week 3 Project: Financial Statement Analysis (continued) Rubric: Second Project FIN515 Possible Points Ratios selected Ratio Extraction & Average Calculation 12 Criteria and Point Range 0-3 No referent provided. Insufficient or incorrect ratios used. 0-2 Ratios are not provided, and referencing was not provided. 8 Form 3-4 12 8 7-9 Ratios mostly appropriate. Appropriate referent selected. 5-6 Some ratios are incorrect, and referencing is minimal. . . 0-3 Evaluation 4-6 Some ratios questionable. Inappropriate referent selected. 4-6 Ratios generally reflect the data source and are properly referenced. 7-9 Evaluation generally correct. Minimal or incorrect May be not No evaluation, or Evaluation, or completely evaluation not evaluation not supported by based on findings original. findings or insufficient in quantity. 0-2 3-4 5-6 Significant Minor problems with Writing and problems with writing or presentation..presentation generally presentation or format. correct with a few exceptions. 10-12 Ratios and referent appropriate. 7-8 . Ratios accurately reflect the data source and are properly referenced. 10-12 Evaluation fully supported by findings. 7-8 Virtually no errors in writing or presentation. DuPont Financial Analysis By: Khadijah Nazmeen & Durjay Majlish Industry Financial Ratios Benchmarks • • • • • • • • • • Food services and drinking places (Asset Class: All) Corp Average Financial Ratios 2013 Return on Sales 7.23% Return on Assets 13.01% Return on Net Worth 36.27% Quick Ratio 67.24 Current Ratio 93.35 Inventory Turnover 6,512.05 Assets: Sales 55.58 Tot Liabilities: Net Worth 278.75 Gross Profit Margin • Gross Profit Margin: 60.53 % • Operating Margin: 19.70 % • Net Profit Margin: 16.63 % • Net Sales: $44,294.00 • Cost of goods sold: $17,482.00 • Gross Profit: $26,812.00 • Operating Income: 8,728.00 Coca-Cola Company Gross Profit Margin 70.00% 60.00% Gross Profit Margin, 60.53% 50.00% 40.00% 30.00% 20.00% Operating Margin, 19.70% 10.00% 0.00% Gross Profit Margin Net Profit Margin, 16.63% Asset Turnover Ratio • Inventory Turnover Ratio: 6.80 • Days in Inventory: 53.67 days • Cost of Goods Sold: $17,482.00 • Beginning Inventory balance: $2,239.00 4.5 Inventory Turnover Ratio, 4.3 Coca-Cola Company Assets Turnover Ratio Cost of Goods, 3.5 4 3.5 3 Days in Inventory, 2.5 2.5 2 1.5 1 0.5 0 Coca-Cola Company Beginning Inventory Balance, 4.5 Return on Assets (ROA) • Return on Assets: 3.28 • Net Income: 2,951.00 • Average Total Assets: 90,093.00 Coca-Cola Company Return on Assets (ROA) Average Total Assets, 90093 Average Total Assets Net Income Return on Assets Net Income, 2951 Return on Assets, 3.28 Return on Assets (ROA) Return on Equity (ROE) • Return on Equity: 67.81 • Net Income: 2,951.00 • Average Shareholders' Equity: 4,352.00 Liquidity Ratios • Working Capital: -2,351.00 • Quick Ratio: 1.61 • Acid Test Ratio: 1.20 • Cash Ratio: 0.76 • Current Ratio: 0.76 Coca-Cola Company Liquidity Ratios 6.00% 5.00% 4.00% 3.00% 2.00% 1.00% 0.00% Working Capital Quick Ratio Acid Test Ratio Cash Ratio Current Ratio Profitability Ratios • Gross Profit Margin: 60.53 % • Operating Margin: 23.45 % • Net Profit Margin: 22.70 % • Return on Assets: 31.03 % • Return on Working Capital: -313.31 % • Return on Equity: 27.16 % • Return on Invested Capital: 52.55 % • Return on Investment Ratio: 13.26 % Leverage Ratio Coca-Cola Company Leverage Ratio 15 • Debt to Assets 10 (Debt Ratio): 1.60 • Debt to Equity 5 (Financial Leverage Ratio): 1.40 0 • Capitalization Ratio: 0.51 -5 • Interest coverage ratio (Times interest earned): 12.75 -10 • Long-term debt to Working Capital: -12.08 -15 12.75 1.6 1.4 0.51 -12.08 Efficiency Ratio Coca-Cola Company • Cash Turnover Ratio: 6.06 • Sales to Working Capital: -18.84 • Sales to Fixed Assets: 2.70 • Sales to Total Assets: 1.87 Sales to Working Capital, 18.84 20 15 Sales to Fixed Assets, 2.7 10 5 0 Cash Turn Over Ratio, 6.06 Sales to Total Assets, 1.87 Other Ratios Coca=Cola Company Other Ratios • Current Liabilities to Total Liabilities: 0.25 • Current Liabilities to Current Assets: 1.32 • Long-term Debt to Current Liabilities: 2.94 • Debt to Income Ratio: 5.17 • Cash to Current Liabilities: 0.76 Cash to Current Liabilities Long-term Debt to Current Liabilities Current Liabilities to Current Assets Current Liabilities to Total Liability Current Liabilities Current Liabilities to Total Liability to Current Assets Other Ratios 0.25% 1.32% Other Ratios Long-term Debt to Current Liabilities 2.94% Cash to Current Liabilities 5.17% Reference • 2015 Financial Content, 5000 Industry Choices, Local-US Industry Financials. (n.d.). Retrieved May 11, 2017, from http://bizstats.com/corporation-industryfinancials/accommodation-food-services-72/food-services-anddrinking-places-722/show • United State Security and Exchange Commission Form 10-K. (2015, December 31). Retrieved May 11, 2017, from https://www.sec.gov/Archives/edgar/data/21344/00000213441 6000050/a2015123110k.htm#s1D146C048883EF685055CEF8D1 831007 DuPont Financial Analysis By: Khadijah Nazmeen & Durjay Majlish Industry Financial Ratios Benchmarks • • • • • • • • • • Food services and drinking places (Asset Class: All) Corp Average Financial Ratios 2013 Return on Sales 7.23% Return on Assets 13.01% Return on Net Worth 36.27% Quick Ratio 67.24 Current Ratio 93.35 Inventory Turnover 6,512.05 Assets: Sales 55.58 Tot Liabilities: Net Worth 278.75 Gross Profit Margin • Gross Profit Margin: 60.53 % • Operating Margin: 19.70 % • Net Profit Margin: 16.63 % • Net Sales: $44,294.00 • Cost of goods sold: $17,482.00 • Gross Profit: $26,812.00 • Operating Income: 8,728.00 Coca-Cola Company Gross Profit Margin 70.00% 60.00% Gross Profit Margin, 60.53% 50.00% 40.00% 30.00% 20.00% Operating Margin, 19.70% 10.00% 0.00% Gross Profit Margin Net Profit Margin, 16.63% Asset Turnover Ratio • Inventory Turnover Ratio: 6.80 • Days in Inventory: 53.67 days • Cost of Goods Sold: $17,482.00 • Beginning Inventory balance: $2,239.00 4.5 Inventory Turnover Ratio, 4.3 Coca-Cola Company Assets Turnover Ratio Cost of Goods, 3.5 4 3.5 3 Days in Inventory, 2.5 2.5 2 1.5 1 0.5 0 Coca-Cola Company Beginning Inventory Balance, 4.5 Return on Assets (ROA) • Return on Assets: 3.28 • Net Income: 2,951.00 • Average Total Assets: 90,093.00 Coca-Cola Company Return on Assets (ROA) Average Total Assets, 90093 Average Total Assets Net Income Return on Assets Net Income, 2951 Return on Assets, 3.28 Return on Assets (ROA) Return on Equity (ROE) • Return on Equity: 67.81 • Net Income: 2,951.00 • Average Shareholders' Equity: 4,352.00 Liquidity Ratios • Working Capital: -2,351.00 • Quick Ratio: 1.61 • Acid Test Ratio: 1.20 • Cash Ratio: 0.76 • Current Ratio: 0.76 Coca-Cola Company Liquidity Ratios 6.00% 5.00% 4.00% 3.00% 2.00% 1.00% 0.00% Working Capital Quick Ratio Acid Test Ratio Cash Ratio Current Ratio Profitability Ratios • Gross Profit Margin: 60.53 % • Operating Margin: 23.45 % • Net Profit Margin: 22.70 % • Return on Assets: 31.03 % • Return on Working Capital: -313.31 % • Return on Equity: 27.16 % • Return on Invested Capital: 52.55 % • Return on Investment Ratio: 13.26 % Leverage Ratio Coca-Cola Company Leverage Ratio 15 • Debt to Assets 10 (Debt Ratio): 1.60 • Debt to Equity 5 (Financial Leverage Ratio): 1.40 0 • Capitalization Ratio: 0.51 -5 • Interest coverage ratio (Times interest earned): 12.75 -10 • Long-term debt to Working Capital: -12.08 -15 12.75 1.6 1.4 0.51 -12.08 Efficiency Ratio Coca-Cola Company • Cash Turnover Ratio: 6.06 • Sales to Working Capital: -18.84 • Sales to Fixed Assets: 2.70 • Sales to Total Assets: 1.87 Sales to Working Capital, 18.84 20 15 Sales to Fixed Assets, 2.7 10 5 0 Cash Turn Over Ratio, 6.06 Sales to Total Assets, 1.87 Other Ratios Coca=Cola Company Other Ratios • Current Liabilities to Total Liabilities: 0.25 • Current Liabilities to Current Assets: 1.32 • Long-term Debt to Current Liabilities: 2.94 • Debt to Income Ratio: 5.17 • Cash to Current Liabilities: 0.76 Cash to Current Liabilities Long-term Debt to Current Liabilities Current Liabilities to Current Assets Current Liabilities to Total Liability Current Liabilities Current Liabilities to Total Liability to Current Assets Other Ratios 0.25% 1.32% Other Ratios Long-term Debt to Current Liabilities 2.94% Cash to Current Liabilities 5.17% Reference • 2015 Financial Content, 5000 Industry Choices, Local-US Industry Financials. (n.d.). Retrieved May 11, 2017, from http://bizstats.com/corporation-industryfinancials/accommodation-food-services-72/food-services-anddrinking-places-722/show • United State Security and Exchange Commission Form 10-K. (2015, December 31). Retrieved May 11, 2017, from https://www.sec.gov/Archives/edgar/data/21344/00000213441 6000050/a2015123110k.htm#s1D146C048883EF685055CEF8D1 831007
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