Financial Analysis Paper
Instructions –Individual Project
Demonstration of your knowledge of financial ratios and key observations from applicable business financial statements.
Select one publicly traded company and do following:
Write a full 8-10 page paper (not including cover page, reference page(s), and appendix) to address each of the guidelines below. The paper should follow APA guidelines, each element, and include a Reference and Appendix.
Paper Details
Cover Sheet should be the standard SAGU cover sheet.
Include the title of your paper and name.
Company Overview
Provide a description of Company Overview that includes its history, industry, competitors, and future goals.
Describe the company’s products and or services.
Financial Ratio Analysis
Liquidity Ratios – Calculate the current and quick ratio. Interpret your results.
Asset Management Ratios – Calculate the total assets turnover and inventory turnover. Interpret your results.
Financial Leverage Ratios – Calculate the total debt/total assets and equity multiplier. Interpret your results.
Profitability Ratios – Calculate Operating Profit Margin and
Return on Equity. Interpret your results.
Market Value Ratios – Calculate the price-to-earnings ratio and price-to-book value ratio. Interpret your results.
Financial Statement Analysis
Review the Income Statement – Describe 3 key points or observations regarding the Income Statement.
Review the Balance Statement – Describe 3 key points or observations regarding the Balance Sheet for the company.
Review the Cash Flow Statement – Describe 3 key points or observations regarding the Cash Flow Statement for the company.
Industry Comparison
Compare your company to a competitor by using 4 ratios used above in a table. Identify which company performs better financially. Interpret your results.
Biblically Integrate
What sound financial principles found in the Bible in your recommendations and examination of your company review.
Where do you see opportunity to integrate biblical financial principles further which could improve the financials of the business, culture of the business, or the impact to the community?
Recommendations
Recommend 3 – 4 actions that the company should take to improve its financial performance and explain why.
Conclusion to summarize your company review.
APA Reference(s) Page to include at least 4 references.
Appendix – Include an excerpt of the Balance Sheet, Income Statement, and Cash Flow Statement you referenced and use
Formatting Details
The paper should follow APA guidelines and written clearly and concisely. Refer to the APA 7th edition Manual and the resources posted to Blackboard for your reference.
Use complete sentences or paragraphs.
Be sure to cite and reference all sources. Acceptable sources include your textbook, any version of the Bible, governmental websites, the selected company’s website, and Peer-Reviewed articles.
References not acceptable include are any other company’s website, Investopedia, Wikipedia, opinion news, magazines articles, etc.
