Saint Leo University
Graduate Business Studies
MBA 560 Financial and Managerial
Accounting
Financial Statement Analysis Project
You
are to act as a financial advisor to a client interested in investing in a
particular industry. You will research a company and provide
a recommendation to your client whether he/she should invest. Some
possible industries include:
Industry Companies
Airline American/Southwest
Airlines/United
Fast
Food Wendy’s/McDonalds
Search
Engine Google/Yahoo
Pharmaceutical Merck/Pfizer/Bristol
Myers Squibb
Auto Ford/GM
Retail Gap/Guess/Abercrombie
Beverage Coca Cola/Pepsi
Or
you may select other companies or another industry. Each
person in the class must select a different company. Companies must be public companies.
PART
A: Obtain Financial Statements
Obtain
3 years of financial
statements (just the Balance Sheet and Income Statement) for your company from
SEC.GOV. 3 BALANCE SHEETS AND 3 INCOME
STATEMENTS will be submitted. One set per company.
PART
B: Enter data into FSAP (Financial Statement Analysis Package)
(Google
– “Financial Statement Template.xls, click on “Excel Template for Income
Statement – Accounting Simplified”).
Enter
the Balance Sheet and Income Statement amounts for 3 years into the Financial Statement Analysis Package Excel
file (just the Balance Sheet and Income Statement information, not the
Statement of Cash Flows). Make sure your balance sheet BALANCES!!!! Make sure
your Net Income matches your Net Income on the Income Statement. Submit one FSAP per company.
PART C: Company Analysis
Focus
more on their position within the industry, recent developments, fluctuation in
stock prices relative to the market/industry, and other items of significance
that would impact your investment decision. Legal issues facing the company.
New markets and new products. DO NOT WRITE ABOUT THE HISTORY OF THE COMPANY (1
page – single spaced). Submit 1 paper
per company.
PART D: Industry Analysis
Summarize
the economic outlook for your industry.
Look at recent market activity, recent indicators impacting your
industry. Address recent change in stock prices. Obtain industry averages for your ratio and
common size analysis. Identify laws/regulations impacting your industry.
Identify market trends and geo/political events impacting your industry.
Identify Micro/Macro economic conditions impacting your industry. DO NOTE WRITE
ABOUT YOUR INDIVIDUAL COMPANIES. (1 page – single spaced). Submit 1 paper per industry.
Data
sources: Standard and Poor’s Stock Reports or other
Industry Surveys, Mergent’s Industry Review. Finance.yahoo.com,
moneycentral,msn.com, hoovers.com, and other financial websites. Examine
recommendations of other investment websites (buy/sell/hold).
PART
E: FINAL PAPER
Include Company Analysis (address
prior comments)Include Industry Analysis (address
prior comments)Include FSAP summary – Create
tables summarizing the analysis tab of your FSAP. Make it look
professional.Write a summary of the significant
findings from the financial statement analysis. (1 single spaced page).
Address significant (Focus on the 2-4 items under each) Ratios, Horizontal
Analysis, and Common Sized Analysis from the FSAP (look under the Analysis
Tab). Do not address all the ratios and every line of vertical and
horizontal analysis, just what you feel is important.
E.
Based on your findings would you
invest? Include specific support for your decision based on your findings in
the analysis. Also include support (for or against) investing in the industry you
chose.
GRADING
DO NOT COPY, DO NOT PLAGIARIZE, CITE
APPROPRIATELY!!
USE APA
Final paper will be submitted to turnitin.com
Due
%
PART
A – Financial Statements
15%
PART
B – FSAP
15%
PART
C – Company Analysis
15%
PART
D – Industry Analysis (2 Companies submit one)
15%
PART
E FINAL ESSAY – Analysis using Ratio, Common Sized, and Vertical Analysis –
Decision
40%
Financial Statement Analysis Presentation
You will then present your findings, including an overview of the
companies, on the last day of classes.
Presentation Rubric
Evaluating
Student Presentations
Department
of Accounting, Business Information Systems, and Marketing
Criteria
Unacceptable
0-3
Acceptable
4-7
Exemplary
8-10
Total
Points
1) Introduction
Student does not introduce topic and
offers no components for discussion.
Student introduces topic and begins
presenting but does not clearly state all variables for discussion.
Student completely introduces topic
and clearly states 3 to 4 components for discussion.
2) Organization
Audience cannot understand
presentation because there is no sequence of information.
Student presents all components but
not in a logical sequence (audience has some difficulty following
presentation).
Student presents information in
logical, interesting sequence which audience can follow.
3) Dress and
Appearance
Student was not professionally dressed
and properly groomed.
Student was professionally dressed but
displayed one or more distracting accessories.
Student was professionally dressed
devoid any distracting accessories.
4) Subject
Knowledge
Student does not have grasp of
information; student cannot answer questions about subject.
Student is able to answer rudimentary
questions and appears uncomfortable with the topic of discussion.
Student demonstrates full knowledge
(more than required) by answering all questions with explanations and
elaboration.
5) Graphics
Student uses superfluous graphics or
no graphics
Student occasionally uses graphics
that rarely support text and presentation.
Student’s graphics explain and
reinforce screen text and presentation.
6) PP Slides and/or other Visual
Student’s slide presentation (or
handout) has four or more spelling errors and/or grammatical errors. Less than half of the slides follow PP
rules (1 topic, 4 to 6 bullets slide).
Slide presentation (or handout) has
three misspellings and/or grammatical errors.
More than half of the slides follow PP rules.
Slide presentation (or handout) has no
misspellings or grammatical errors.
All slides follow PP rules.
7) Eye Contact
Student reads all of report with no
eye contact.
Student occasionally uses eye contact,
but still reads most of report.
Student maintains eye contact with
audience, seldom returning to notes.
8) Voice
Production and Grammar Usage
Student does not effectively
articulate, incorrectly pronounces terms, and uses slang and/or
idiosyncrasies.
Student’s voice is low. Student
incorrectly pronounces terms. Audience members have difficulty hearing
presentation.
Student uses a clear voice and
correct, precise pronunciation of terms so that all audience members can hear
presentation.
9) Conclusion
Student offered no conclusion and
ended presentation without appropriate closing.
Student offered a presentation summary
but did not reiterate variables that were discussed and/or brought in new
information.
Student clearly summarized
presentation by briefly reiterating all variables discussed—without bringing
in new information.
10) Overall Deliverance
Student uses no gestures, no examples,
and displays poor voice characteristics and a lack of confidence.
Student uses some gestures, doesn’t
show complete confidence and presents with little enthusiasm. Examples were used but some did not relate
to presentation topic.
Student presents with poise and
confidence and uses appropriate gestures, posture, volume resonance, and
stimulating examples that relate to the topic.
Total
Points:
LEDGER FOR TOTAL POINTS SCORED
0-39
points = Unacceptable
40-79
points = Acceptable
80-100
points = Exemplary
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