Financial Analysis Report

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Financial Analysis Report

Project Details

Write a report on the financial condition of your corporation. The paper should be four to six pages. The

bibliography and any financial statements and financial ratios are in addition to the six-page limit. You

will want to include the trend analysis you performed based on Week 2 homework. You should also

include in the appendix any additional data that you acquire from the Mergent and Value Line databases

available from the Florida Tech library.

Focus on the financial health of the company and the likelihood of achieving future success. Specifically,

evaluate the company’s capital structure, liquidity, profitability, and effective use of assets, solvency,

and any other relevant factors. State your opinion on the company’s short-term and long-term financial

strength. Compare your company to the industry average and/or its closest competitor. Use Mergent

and Value Line to help in this discussion.

Please note that this is a financial analysis – present the “story” that your financial analysis discovered.

Supplement the story with the past three years of stock price data that you examined in Week 6 and

other outside news stories. You may want to examine analyst reports. There is a limit of six pages so you

must think carefully about what information you want to include in your report. You may have as many

pages as you wish in your appendix, but do not include data in appendix that is not referenced or

discussed in text.

Some of the items from Mergent are competitors’ calculated ratios. You may want to compare the ratios

for your firm vs. the ratios of its competitors. For comparison purposes, use the ratios from Mergent so

that there is not an issue with different time periods, as they use the last five quarters’ data. You can

also find some of the latest news about your firm.

Some of the items from Value Line are rankings for timeliness, financial strength, price growth

persistence, safety, price stability, and earnings predictability. You can also see some of the latest news

and projections for the company. Again, you may want to look at its closest competitor.

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Make sure that you also use citations and references to show where the information originated. The last

paragraph should give your recommendation and reasoning for buying the stock.

NOTE: Your report MUST have at least four references in the bibliography (reference section). Of

these one has to be the company website, annual report, or your source for the financial

statements; one has to be Morningstar.com, where you accessed the bond data; one would

be Yahoo Finance.com, the source for your stock information; and you should access either

Mergent or Value Line (preferably both) from the library to gather comparative and analyst

information. Some current business reports on your firm from The Wall Street Journal or

reputable online sources would enhance your analysis.

Wikipedia is a self-reported data gathering site and as such is not acceptable as a cited source

of information.

Project Details