Description
See attached.
Evaluation of Corporate Performance
The Final Paper will involve applying the concepts learned in class to an analysis of a company using data from its annual report. Using the concepts from this course, you will analyze the strengths and weaknesses of the company and write a report either recommending or not recommending purchase of the company stock.For help with using Mergent, use Mergent Online Quick Tips.
For help with reading an annual report access this handy guide (Links to an external site.) from Money Chimp.
The completed report should include:
- An introduction to the company, including background information.
- A complete and thorough financial statement review.
- Pro Forma financial statements (Balance Sheet and Income Statement) for the next fiscal year, assuming a 10 percent growth rate in sales and Cost of Goods Sold (COGS) for the next year.
- Complete ratio analysis for the last fiscal year using at least two ratios from each of the following categories:
- Liquidity
- Financial leverage
- Asset management
- Profitability
- Market value
- Debt
- Per-Share
- Measures of relative value (P/E, P/B)
- Activity
- Cash Flow
- A calculation of Return on Equity (ROE) using the DuPont system.
- Assessment of management performance by calculating Economic Value Added (EVA).
- A synopsis of your findings, including your recommendations and rationale for whether or not to purchase stock from this company.
- Evaluate the financial risks associated with operating internationally. If your chosen company does not operate internationally, evaluate what the financial risks could be if they were to expand internationally.
The paper
- Must be eight to ten double-spaced pages in length (not including title and references pages) and formatted according to APA style
- 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 five scholarly sources, such as the textbook, industry reports, and articles
- Must document all sources in APA style
- Must include a separate references page that is formatted according to APA style
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Explanation & Answer
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Outline
Topic: Evaluating Corporate Performance
Amazon Company
Covered;
•
An introduction
•
Financial statement review.
•
Pro Forma financial statements (Balance Sheet and Income Statement) for the next fiscal
year, assuming a 10 percent growth rate in sales and Cost of Goods Sold (COGS) for the
next year.
•
Ratio analysis for the last fiscal year using at least two ratios from each of the following
categories:
•
Liquidity
•
Financial leverage
•
Asset management
•
Profitability
•
Market value
•
Debt
•
Per-Share
•
Measures of relative value (P/E, P/B)
•
Activity
•
Cash Flow
•
A calculation of Return on Equity (ROE) using the DuPont system.
•
Assessment of management performance by calculating Economic Value Added (EVA).
•
A synopsis of the findings and recommendations and rationale f
•
Financial risks associated with operating internationally. If your chosen company does
not operate internationally, evaluate what the financial risks could be if they were to
expand internationally.
Running head: AMAZON’S PERFORMANCE
Amazon Inc. Performance
Student’s name
Institutional Affiliation
Instructor
Date
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AMAZON PERFORMANCE
Evaluating Corporate Performance
Introduction
Amazon Inc. is one of the biggest retailer online shops in the world. The company was
started in 1994. The firm covers 14 different geographical locations where it has established its
market base. The company has targeted the diverse market all over the world in a bid to achieve
high sales thus high profits in the long run. For the countries where the firm has not established
online sales take place and consignments are always shipped to clients' destination. The
headquarters of Amazon Inc. is based in Seattle USA, Washington. The current CEO of the firm
is Jeffrey Bezos. As of today, the firm has 566, 000 employees as a group. Despite, its strong
base the company has faced competition from other online shops such as Alibaba Inc., Apple
Inc., e-bay, Facebook Inc., Google, Netflix, Walmart Inc., and others (Madsen & Walker, 2015).
The company is driven by four main factors, customer oriented, passion for invention,
commitment to execute toward achieving excellence in all their operational activities, and
strategic thinking to keep with the dynamic that takes place due to consumer behaviour. The
company has managed to serve the customers through online services and physical stores. It
simply means that any customer can access goods from any part of the website through the
internet. The company has made an extra mile in mobile apps development that makes
navigation of company websites much easier. The company is in the industry of manufacturing
and selling electronic, Tablets, watches, TVs, laptops, echo devices and media content such as
books. Therefore, the discussion below focuses on how Amazon performance is determined by
its ability to meet its both long term and short obligations which are defined through ratio
analysis of elements of financial statements such balance sheet, profit and loss and statement of
cash flows.
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AMAZON PERFORMANCE
Pro-forma financial statements for next year 10% growth in Sales and Cost of Goods Sold
ASSETS
Current assets:
Cash and cash equivalents
Proforma Balance Sheet 2018
Marketable securities
10,464
Inventories
16,047...