Evaluate the performance of a company through a critical analysis of the company's published financial statements.
The Purpose and Context
This assignment will help you to be able to evaluate the performance of a company through a critical analysis of the company's published financial statements.
Case Scenario
Research and use published financial data for the past four years from a company of your choosing and compose a thorough analysis of the company's operations and performance health.
You are a financial consultant who has been asked to analyse the financial statements and annual reports of a corporation. You must include the following statements in your analysis:
- Balance Sheet
- Liquidity
- Income Statement
- Leverage
- Cash Flow Statement
- Profitability
Assignment Instructions
- 1. Create a performance evaluation by analyzing the following performance measures:
- Profitability
- Efficiency
- Short-term Solvency
- Long-term Solvency
- Market-based Ratios
- Suggest recommendations for improving the company business based of your report and research.
- Recommend one new investment project to the company. The company wants to expand its business through an investment project, however, it can only capitalize 40% through own capital.
- Indicate whether it is a good idea by using NPV and WACC.
- Indicate whether the company must use its own cash or use retained earnings.
- Decide whether or not the company should pay return earnings or not.
