Choose a U.S.-based Fortune
5
0
0 company to analyze; submit the name to be approved by the instructor. Each student will analyze a unique company (no two students may choose the same company). Be sure to verify that your chosen firm has issued bonds that are outstanding because the project involves using bond data (can use Morningstar.com to verify that bond data on firm is available).
Financial Analysis Report – Project Details
Grading Rubric for the Financial Analysis Report
The grading for this individual project is based on a 0-5-points scale and stands for
2
0% of your overall grade:
in which:
0
Did not do at all
1
Barely attempted
2
Got about 25% of the ratios done
3
Got about 50% of the ratios done
4
Got about 75% of the ratios done
5
Submitted exactly as required by the assignment
Trend analysis (20%)
Bond average yield (10%)
Firm beta correct (10%)
Stock price last three years (10%)
Firm WACC (10%)
Analysis of data gathered (20%)
Grammar, sentence construction, spellings, proper references, presentation, etc. (20%)
NOTE: Some requirements may not grade on every point on scale. For example, getting the beta correct is either zero or five.
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I chose Apple.
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.
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Formatting
Title Page
Citation
Outline
