This project consists of 3 parts. You are to act as a financial analyst and need to write a report regarding a United States Publicly traded company (you select the company). By the end of Module 2, items/bullet points 1 and 2 must be submitted. By the end of Module 6, items/bullet points 3 and 4 must be submitted. For Module 6 submission, please also include excel spreadsheet containing the financial statement information for the last 5 years used in your analysis. By the end of Module 7 a completed report including item 1 through 6 must be submitted (The Assignment Folder is linked to Turnitin). Submit appropriate assignments into the Assignment Folder no later than Sunday 11:59 PM EST/EDT of the indicated module. The report must have APA format. The calculations for ratios must be based on the formulas provided in the assigned textbook. Please use the Campbell Soup Company Comprehensive Case report in the textbook as a guide for this assignment/project.
1. Executive summary. Brief summary focused on important analysis results; it launches the analysis report.
2. Analysis overview. Background material on the company, its industry, and its economic environment.
3. Evidential matter. Financial statements and information used in the analysis. Please note that financial statement data used in the analysis must be for the last 5 years. This includes ratios, trends, statistics, and all analytical measures assembled.
• Short-term liquidity. Ability to meet short-term obligations.
o Current ratio
o Acid-test ratio
o Accounts receivable turnover
o Inventory turnover
o Days’ sales in receivables
o Days’ sales in inventory
o Approximate conversion period
o Cash to current assets
o Cash to current liabilities
o Working capital
o Days’ purchases in accounts payable
o Average net trade cycle
o Cash provided by operations to average current liabilities
• Capital structure and solvency. Ability to generate future revenues and meet long-term obligations.
o Total debt to equity
o Total debt ratio
o Long-term debt to equity
o Equity to total debt
o Fixed assets to equity
o Current liabilities to total liabilities
o Earnings to fixed charges
o Cash flow to fixed charges
o Times Interest Earned
• Return on invested capital. Ability to provide financial rewards sufficient to attract and retain financing.
o Return on net operating assets-(RNOA)
o Return on common equity-(ROCE)
o Return on long-term debt and equity
o Equity growth rate
o Disaggregation of ROCE
o Disaggregation of RNOA
o Return on Total Assets
o Return on Common Equity
• Asset turnover. Asset intensity in generating revenues to reach a sufficient profitability level.
o Sales to cash and equivalents
o Sales to receivables
o Sales to inventories
o Sales to working capital
o Sales to fixed assets
o Sales to other assets
o Sales to total assets
o Sales to short-term liabilities
o Cash turnover
o Account Receivable Turnover
o Inventory Turnover
o Working Capital Turnover
o Fixed Assets Turnover
o Total Assets Turnover
• Operating performance and profitability. Success at maximizing revenues and minimizing expenses from operating activities over the long run.
o Gross Profit Margin
o Operating Profit Margin
o Net Profit Margin
• Forecasting and valuation. Projection of operating performance, ability to generate sufficient cash flows to fund investment needs, and valuation.
