Evaluation of Corporate Performance

Evaluation of Corporate Performance

For the Final Paper, you will apply 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. You will then write a report either recommending or not recommending purchase of the company stock.

Research Tip: The Mergent database in the Ashford University Library contains company profiles and financial information for publicly traded companies and their competitors. To access this database, enter the Ashford University Library by clicking the “Library” link on the left navigation bar in your online course. Once you are in the Library, select “Find Articles and More” in the top menu panel. Next, select “Databases A-Z” and go to section M to access the Mergent database. For help with using Mergent, use “Mergent Online Quick Tips.”

For help with reading an annual report access this handy guide from Money Chimp.

The completed report should include:

a. An introduction to the company, including background information.

b. A complete and thorough financial statement review.

c. Pro Forma financial statements (balance sheet and income statement) for the next fiscal year, assuming a 10% growth rate in sales and cost of goods sold (COGS) for the next year.

d. 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

e. Calculate return on equity (ROE) using the DuPont system.

f. Calculate economic value added.

g. A synopsis of your findings, including your recommendations and rationale for whether or not to purchase stock from this company.

This report should be eight to ten pages long excluding title page and reference page(s). Use APA 6th edition formatting guidelines as outlined in the Ashford Writing Center. Support your findings and recommendations with evidence from at least five scholarly resources; such as the textbook, industry reports, and articles from the Ashford University Library.

Evaluation of Corporate Performance