Umuc Amba630 Week 3 Assignment

Our purpose this week: learning how to measure the performance of companies by analyzing their financial statements. Show us that you have read and understood the required readings, links and attached files – quote them where appropriate.Assignment: You are the assistant to the CEO of a major company. Your CEO keeps an eye on the competition, and asks you to do the following. Using ratio analysis, compare two major competitors in the same industry.Instructions: Pick any two U.S. public companies in the same industry. Manufacturing companies are often the least complicated. Service companies more complicated and banks the most difficult.One of your two companies can be the same company you used in Week 2. We recommend that you use the week 2 company. Your professor may provide a list of companies that you may choose from.Select the 10 most important financial ratios for your two companies and calculate each for the last 2 fiscal years using Excel. Explain why you selected these ratios.Create a comparison chart for these 10 ratios for 2 years for each company. Explain how you calculated each ratio. Explain what each ratio should mean to management.There is an example posted in the file attached in the Week 3, 2016 R AMBA Sample Answer Week 3. This compares Southwest Airlines and Jet Blue Airlines. The “Comparison of Ratios” worksheet shows comparison of ratios, however it does not include the required words about how the ratios were calculated. For example, ROE is defined as Net Income / Total Common Stockholder Equity. It does it include what the numbers mean for management. Please include both in your work.The tabs or sheets for Income Statement, Balance Sheet and Cash Flow Statement were copied from SEC Interactive Data. Just click on “View Excel Document” to get Excel sheets for each.We strongly recommend that you obtain data from the SEC web site “Interactive Data. Then you can copy and paste into Excel. If you use data from other web sites, it may not allow excel to calculate ratios.Create a single Excel file for your entire assignment. Spend time to understand what you are trying to do and simplify your format, your calculations and approach. Think about which ratios are important and WHY? Please tell us why you picked each ratio.You may also obtain financial information and the companies’ latest annual reports or the web directly from MSN Money or Yahoo Finance or Morningstar. However, it may be necessary to enter the numbers by hand into excel to allow Excel to calculate ratios. For additional information, look for the SEC Form10-K link from one of the MSN Money, or Morningstar, or Yahoo Finance financial sites. Please be aware that some financial sites may omit some numbers rather than change the standard format.You should calculate, and comment upon, all 10 financial ratios for the last 2 fiscal years.All calculations should be shown, and all answers should be thoroughly explained.It is useful to compare financial ratios for a company with financial ratios of its industry. Industry financial ratios can be found on Morningstar.com, Yahoo.We recommend against using banksFinance and MSN Money.What can you tell from your analysis? What are the strengths and weaknesses of each company? Which is the stronger competitor? Give your reasons.Your Excel file should be attached to the “Week 3 Individual Assignment” link in the Assignment folder.

Originally posted 2018-07-23 17:53:17. Republished by Blog Post Promoter

Umuc Amba630 Week 3 Assignment

Assignment: You should answer all of the questions listed below as they relate to the financial statements of any U. S. public company of your choice in its latest annual report. Please use the Securities and Exchange Commission web site as your primary source for financial statements. All publicly traded U S companies have their annual reports called the 10-K available through the Securities and Exchange Commission web site. . sec. gov/”>http: //www. sec. gov/NOTE: Not all companies traded on the New York Stock Exchange are U S Companies. Please request permission from the professor before choosing a non-US company. For Example, Sony is not a US company. Instructions for use of the site are as follows: About half way down the home page is a box titled Search EDGAR, free access to over 21 million filings. Enter the company name or ticker symbol. That brings up a page called EDGAR Search Results. In the line “filter results” enter “10-K” in filing type and hit search. That will bring up recent company annual reports. Note: You have a choice of “Documents” or “Interactive Data. ” Both contain all the information. “Interactive Data” uses Excel and provides the best access to information for questions 1, 2, and 3. “Documents” provides information that is easy to read for questions 4 through 8. After you click on Documents, click on the red letters and numbers to the right of the “10-K” heading. Also you can find the financial statements of any U. S. public company by visiting Morningstar, Yahoo Finance or MSN Money, and using the stock market symbol for your chosen company (which can be looked up on Morningstar, Yahoo Finance or MSN Money). Please be aware that sometimes these services omit some numbers in order to fit their preferred formats. Many companies have links to the Annual Report as filed with the SEC. It can be found on the Investor relations page of the company web site. If you work for a U. S. public company, you may want to use the financial statements of your company – but the choice is up to you. 1) What 3 items of important information does the income statement reveal about the financial performance of the company over the last three years?2) What 3 items of important information does the balance sheet reveal about the financial position of the company over the last two years?3) Can you identify the major sources of funding used by the company from the information presented in the company’s annual report? Please look at the Statement of Cash Flows, formerly called the Source and Uses of Funds Statement. 4) Who is responsible for: a) the issuance, and b) the contentof the company financial statements? (Note: this information may be difficult to find. Look for statements by management and the independent auditing firm. )5) What assurance, if any, is there that the financial statements are in compliance with GAAP, and are free of material misstatements?6) Of what use, if any, are the notes to the financial statements? Give an example of something learned from the footnotes of your company. 7) What can you learn from the Business Section of the 10-K? Give two facts learn from reading this section. 8) What can you learn from the Management Discussion and Analysis of Financial Condition and Results of Operations (MD&A)? Give two facts learned from reading this section. *************Post in your individual assignment folder by the due date. . Quantitative analysis tied to the financial statement concepts will add value to your work.

UMUC AMBA630 week 3 assignment

Question
Our purpose this week: learning how to measure the performance of companies by analyzing their financial statements. Show us that you have read and understood the required readings, links and attached files – quote them where appropriate.

Assignment:

You are the assistant to the CEO of a major company. Your CEO keeps an eye on the competition, and asks you to do the following. Using ratio analysis, compare two major competitors in the same industry.

Instructions:

Pick any two U.S. public companies in the same industry. Manufacturing companies are often the least complicated. Service companies more complicated and banks the most difficult.

One of your two companies can be the same company you used in Week 2. We recommend that you use the week 2 company. Your professor may provide a list of companies that you may choose from.

Select the 10 most important financial ratios for your two companies and calculate each for the last 2 fiscal years using Excel. Explain why you selected these ratios.

Create a comparison chart for these 10 ratios for 2 years for each company. Explain how you calculated each ratio. Explain what each ratio should mean to management.

There is an example posted in the file attached in the Week 3, 2016 R AMBA Sample Answer Week 3. This compares Southwest Airlines and Jet Blue Airlines. The “Comparison of Ratios” worksheet shows comparison of ratios, however it does not include the required words about how the ratios were calculated. For example, ROE is defined as Net Income / Total Common Stockholder Equity. It does it include what the numbers mean for management. Please include both in your work.

The tabs or sheets for Income Statement, Balance Sheet and Cash Flow Statement were copied from SEC Interactive Data. Just click on “View Excel Document” to get Excel sheets for each.

We strongly recommend that you obtain data from the SEC web site “Interactive Data. Then you can copy and paste into Excel. If you use data from other web sites, it may not allow excel to calculate ratios.

Create a single Excel file for your entire assignment. Spend time to understand what you are trying to do and simplify your format, your calculations and approach. Think about which ratios are important and WHY? Please tell us why you picked each ratio.

You may also obtain financial information and the companies’ latest annual reports or the web directly from MSN Money or Yahoo Finance or Morningstar. However, it may be necessary to enter the numbers by hand into excel to allow Excel to calculate ratios. For additional information, look for the SEC Form10-K link from one of the MSN Money, or Morningstar, or Yahoo Finance financial sites. Please be aware that some financial sites may omit some numbers rather than change the standard format.

You should calculate, and comment upon, all 10 financial ratios for the last 2 fiscal years.

All calculations should be shown, and all answers should be thoroughly explained.

It is useful to compare financial ratios for a company with financial ratios of its industry. Industry financial ratios can be found on Morningstar.com, Yahoo.

We recommend against using banksFinance and MSN Money.

What can you tell from your analysis? What are the strengths and weaknesses of each company? Which is the stronger competitor? Give your reasons.

Your Excel file should be attached to the “Week 3 Individual Assignment” link in the Assignment folder.