Description
Part 1
It is easy to become too focused on the minutia of the numbers and lose sight of the larger picture of how a company is valued in the larger marketplace. In this portion of your report you will use the skills and content you mastered in your Adaptive Coach this week to analyze the company’s business and financial conditions and begin to create a macro-level view of the company and its performance within the market as a whole, as well as completing specific analyses that will help you to evolve your impressions of the company’s financial stability and long term health.
Include the following content in this section.
• Summarize how your company compares to the overall market
• Summarize what 3-5 market analysts are currently saying about the company.
• Calculate the value of the company’s financial assets by completing ratio analyses for the company for the last three fiscal years within the following bulleted categories.
Provide a rationale as to whether each ratio is favorable or signals potential trouble for the company justifying your observations with evidence from the data and your findings.
(Note: Your report must include a minimum of 2 ratios from each bulleted category, with a minimum of 10 total analyses. The greater the number of relevant ratio analyses you can provide, the stronger your business case will be to either purchase or not purchase the stock.)
• Categories for ratio analysis
o Liquidity
o Financial leverage
o Asset management
o Profitability
o Market value
The Market Summary and Value Calculation
• Must be two double-spaced pages in length (not including title and references pages) and formatted according to APA style as outlined in the Ashford Writing Center (Links to an external site.).
• Must include a separate title page with the following:
o Title
o Student’s name
o Course name and number
o Instructor’s name
o Date submitted
• Must use at least two industry or scholarly sources in addition to the course text.
o The Scholarly, Peer Reviewed, and Other Credible Sources (Links to an external site.) table offers additional guidance on appropriate source types. If you have questions about whether a specific source is appropriate for this assignment, please contact your instructor. Your instructor has the final say about the appropriateness of a specific source for a particular assignment.
• Must document all sources in APA style as outlined in the Ashford Writing Center.
• Must include a separate references page that is formatted according to APA style as outlined in the Ashford Writing Center.
Carefully review the Grading Rubric (Links to an external site.) for the criteria that will be used to evaluate your assignment.
Part 2
On a separate page:
• Explain your rationale for including the data elements you provided in your summary comparison of your company within the overall market.
• Explain why you chose the market analysts you included in your summary.
• Explain how the market analysts’ current opinions of the company compare to the picture you have formulated of the company thus far.
• Explain how the 10 ratio analyses of the company’s financial assets you calculated in your draft create a full picture of the overall health the company.
• Pose any questions you have regarding the content and/or assignment so your mentor can provide you with assistance to improve your work this week.
Please include the following source: Hickman, K. A., Byrd, J. W., & McPherson, M. (2013). Essentials of finance. Retrieved from
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