Company Name: A Financial Analysis

[Author Name(s), First M. Last, Omit Titles and Degrees]

[Institutional Affiliation(s)]

Abstract

[The abstract should be one paragraph of between 150 and 250 words. It is not indented. Section titles, such as the word Abstract above, are not considered headings so they don’t use bold heading format. Instead, use the Section Title style. This style automatically starts your section on a new page, so you don’t have to add page breaks. Note that all of the styles for this template are available on the Home tab of the ribbon, in the Styles gallery.]

Keywords: [Click here to add keywords.]

Table of Contents Abstract 2 Table of Tables 5 Table of Figures 5 Company Name: A Financial Analysis 6 Company Overview 6 History 6 Current Market 6 Strategic Analysis 6 SWOT 7 Weaknesses. 7 PESTLE 7 Strategic Summary 8 Financial Statements and Ratios 9 Liquidity 9 Asset Management 9 Debt Management 10 Profitability 10 Financial Statement Overview 10 Stock Analysis 11 Pricing 11 Stock Performance 11 Valuation Forecast 13 Stock Analysis Summary 13 Comparative Analysis 14 Overall Company Performance 14 Overall Industry Performance 14 Overall Market Perforamnce 14 Example Investment 14 Conclusion 15 References 16 Table of Tables Table 1 – Liquidity Ratios 8 Table 2 – Asset Management 8 Table 3 – Debt Management 9 Table 4 – Profitability 9

Table of Figures

Figure 1 – XYZ 5-Year Stock Performance (gurufocus.com,2017) 12

Figure 2-NASDAQ 5 Year Perforamnce (marketwatch.com, 2017) 13

Company Name: A Financial Analysis

Introduction for this submission – case study part 1. Introduce the key elements of this section including the company overview and the strategic analysis.

Company Overview

Introductory paragraph. Summarize the section in 1 – 2 paragraphs including the history, current market, and the overall image of the organization.

History

Current Market

Include a brief 2 – 3 paragraph description of the current market the organization operates in (e.g. Apparel, Sporting Goods, Travel and Entertaining, etc). Also describe the regional market (Global, U.S. Only, etc)

Company Summary

This is the concluding paragraph for Company introduction and overview. This paragraph will transition to the strategic analysis. Provide a similar overview as the introductory paragraph and highlight the next perspective is an analysis of the external and internal factors and influences of the organization.

Strategic Analysis

Introductory Paragraph, again 1 – 2 paragraphs highlighting the key examinations included in the strategic analysis. The strategic analysis herein incorporates two perspectives, an examination of the company’s strengths, weaknesses, opportunities, and threats (SWOT) as well as a broader market examination using the PESTLE analysis (political, economic, social, technological, legal, and environmental).

SWOT

The assessment or review of the strengths we (SWOT) – Use Case Data Part 1. May use level three headings for SWOT as illustrated below. Be sure to cite information. The information can come from a number of sources and should not be a reference to another SWOT created for the company.

Strengths. Highlight 2 – 3 key strengths. This may be a short paragraph or only one or two sentences. The same applies for weaknesses, opportunities and threats below..

Weaknesses.

Opportunities.

Threats.

Following threats make sure to summarize the overall section and transition to PESTLE. Explain in 1 – 2 sentences what the perspective difference is between SWOT and PESTLE

PESTLE

The assessment or review of the PESTLE factors – Use Case Data Part 1

This format should be very similar to the SWOT. Level 3 headings for each and 2 – 3 highlights. Short paragraphs of 2 – 3 sentences.

Political.

Economic.

Social.

Technological.

Legal.

Environmental.

Following environment summaries the PESTLE analysis

Strategic Summary

Provide a 1 – 2 paragraph summary of the SWOT and PESTLE. Compare and contrast key elements of SWOT and PESTLE. Are there similarities, differences, perspectives, etc?

Financial Statements and Ratios

Transition paragraph introducing the difference between financial ratio analysis and strategic analysis. What is financial ratio analysis and what does it provide by way of examining the organization? This section uses Company Data Collection Worksheet 2

Liquidity

Discuss the overall trend in liquidity ratios. What do the liquidity ratios illustrate generally? Include the table as illustrated below and be sure to label it as a table using the references tab in MS Word. A Table of Tables will then be added after the Table of Contents. Note the format of the table is not a copy and paste from the spreadsheet. Use the proper boarders and formatting for tables according to APA style as well. (see Example at end of this document)

			2014	2015	Change	2016	Change
Current Ratio
Quick Ratio
Cash Conversion Cycle

Table 1 – Liquidity Ratios

Asset Management

Repeat the same layout and discussion as liquidity. Reference data collection sheet Case Part 2 – Financial Ratios

			2014	2015	Change	2016	Change
Inventory Turnover Ratio
Days Inventory Outstanding
Days Sales Outstanding (DSO)
Total Asset Turnover (TAT)

Table 2 – Asset Management

Debt Management

Repeat same style. Reference data collection sheet Case Part 2 – Financial Ratios

			2014	2015	Change	2016	Change
Debt Ratio
Debt to Equity
Days Payables Outstanding
Interest Coverage

Table 3 – Debt Management

Profitability

Repeat the same style. Reference data collection sheet Case Part 2 – Financial Ratios

			2014	2015	Change	2016	Change
Profit Margin on Sales
Gross Margin
Basic Earning Power
Return on Assets (ROA)
Return on Equity (ROE)

Table 4 – Profitability

Financial Statement Overview

Summarize and discuss the overall results shown above. How do they compare to each other? E.g. The Company shows an overall increasing trend in debt but counters the rising debt with increasing profitability.

Stock Analysis

Overview of the stock analysis section. 2 – 3 paragraphs. Each of the sections Pricing, Performance, and Value Forecast may include charts created by you (not image copied from website). Use the references – Figure label and include a Table of Figures. Each section should include discussion on (a) company results, (b) Industry or competitor results (may choose one main competitor), and (c) Market results (gurufocus has market results). This section uses Case Data Collection Worksheet – 3.

Pricing

1 – 2 paragraphs for each of the following:

Price – describe method of growth

1. Max / Min closing for each year

2. Average closing for each year

3. High / Low Trade for last day of each year

Earnings Per Share – discussion of row 14 including average, growth, competitor and market (market growth over 5 years -0.7% – gurufocus.com)

***Dividends Per Share – no dividends (growth in EPS indicates no dividends because of reinvesting) (decline in EPS indicates no dividends because no profit)

Book Value Per Share – row 16

**Rows from Valuation Worksheet completed in class

Stock Performance

1 – 2 paragraphs for each of the following:

Price Earnings Ratio – row 18

***Dividend Yield – row 21

Payout Ratio

Return on Equity – row 25

Financial Leverage ratios can be obtained at: Morningstar.com

The stock performance trend for XYZ illustrated in a 5-Year pattern in Figure 1.

Figure 1 – XYZ 5-Year Stock Performance (gurufocus.com,2017)

Compare and contrast with the NASDAQ performance. “When compared with the NASDAQ performance over the same period of time a (similar/different/contrasting,etc) trend can be seen in Figure 2 – NASDAQ 5-Year Performance.

Figure 2-NASDAQ 5 Year Perforamnce (marketwatch.com, 2017)

Valuation Forecast

Complete and discuss a value forecast based on earnings and based on dividends. (3 paragraphs – covering each of the following bullets)

· Price forecast for next year (Market Value). High and low forecast. % Change from 2016 (or last year / quarter)

(Forecast – 2016) / 2016 = % change next year

· Book value forecast for next year – calculate using row 16

Shareholder equity / number shares outstanding

5 year average growth rate * 2016 Book Value Per Share

Last year growth rate = (2016-2015)/2015 * 2016 Book Value Per Share

· Likelihood of consistency in forecasts based on trends (likely consistent or likely overvalued/undervalued)

Stock Analysis Summary

2 – 3 paragraphs summarizing the above findings and transitioning paper to next section.

Comparative Analysis

This will be the final concluding section of the paper. This section should incorporate discussion on the prior four sections including: company overview, strategic analysis, financial analysis and stock analysis. This section should be no more than 3 pages.

Overall Company Performance

Explain, based on the four prior sections the company’s overall performance (growth, decline, up and down, etc) and what factors indicate or support this conclusion. This section should be 2 to 4 paragraphs comparing and contrasting each of the prior sections.

Overall Industry Performance

Same as the company, but compare and contrast the industry (identified in company overview) and/or top three competitors. Be sure to include overall (steady, growth, decline, etc) and the factors indicating or supporting this conclusion.

Overall Market Perforamnce

Same as industry and company performance but this time assess the overall performance of the stock market (e.g. NASDAQ).

Example Investment

Explain the background for your example investment (this is outlined in the Module 4 instructions). The example investment illustrates how the company, industry, and market performance relate to investment outcomes. In this example, the investor has an income greater than living expenses. The example investor has a liquid net worth of $1,000,000… etc (continue from Module 4 Instructions).

Based on the analysis provided herein, XYZ would likely return a _____ to _____ percent on investment. With a 100,000 investment in common stock, the investor can expect an annual return of _________. Over five years, assuming an annual average growth of ____, the investor would have a total return of ______.

If the investor were to hold the funds in a savings account at 5% interest per year for five years instead of investing in XYZ common stock, the investor would have a guaranteed return of ________. The savings account is the risk free option ensuring that the investor would be able to confidently expect the return of $_______.

The stock return is (greater or lower) but also has (more / less) risk than the savings account return. Based on the analysis of this report and the example investment comparison, the __________ option would return the highest return over five years.

Conclusion

Provide a 2 – 3 paragraph conclusion for the entire paper. What was discussion and what was concluded. What do you still not know or have to assume? Why?

References Last Name, F. M. (Year). Article Title. Journal Title, Pages From – To. Last Name, F. M. (Year). Book Title. City Name: Publisher Name.

General Notes:

Citations – Political (Smith, 1996)

According to Smith (1996)

General –

No bullet lists

Use paragraphs

Explain why it is a weakness, strength, etc.

Leave out personal opinion – state fact and support with citation

Example: I was reading a study….

Instead: The Disney financial assessment (2016) indicates that….

Avoid contractions – don’t, didn’t, won’t, isn’t

Avoid slang or acronyms