Find the following items in the two latest forms 10-K. · Collect its financial data for the last 3 years: Income statement; statement of Cash Flows; Balance sheet. 1- Analyse the profitability of the company. o To do that calculate:
BCOBM213 – Financial Reporting & Analysis Task brief & rubrics
Task
Final Assignment
- This is a group task.
- You should submit a report in Word format, and a presentation in PowerPoint. The wordcount for all the assessment is 2500 words, the power point presentation should have 10 slides.
- The group should be formed by 3 students.
- You should send an email to me latest December 15th requesting for a group approval, indicating which are the group members.
- No report will be accepted if not previously approved by me.
- The report should explain what the contribution of each of the participants is.
Formalities:
- Cover, Table of Contents, References and Appendix are excluded of the total wordcount.
- Font: Arial 12,5 pts.
- Text alignment: Justified.
Submission: Week (12) – Sunday 12/01/2025 23:59 CEST Via Moodle (Turnitin).
Weight: This task is a 60% of your total grade for this subject. The report counts for 30% of the grade and the presentation 70% of the grade.
It assesses the following learning outcomes:
1. Analyze Cashflow Statements.
2. Compute the cash flows from operations, investments, and financial transactions.
3. Complete a comprehensive financial ratio analysis from the perspective of stockholders, creditors, and other stakeholders.
Tasks:
· Find the following items in the two latest forms 10-K.
· Collect its financial data for the last 3 years: Income statement; statement of Cash Flows; Balance sheet.
· 1- Analyse the profitability of the company.
o To do that calculate:
§ The gross margin percentage
§ The return on total assets
§ The return on equity
· 2- Assess the liquidity and asset management of the company
o To do that calculate:
§ Working capital.
§ Working capital as % of sales.
§ The current ratio.
§ The acid-test ratio.
§ The average Accounts receivable days.
§ The average Inventory days.
§ The average Accounts payable days.
§ The operating cycle
· 3- Assess the company solvency:
o In order to do that, calculate:
§ The debt-to-equity ratio.
§ The debt-to-Assets ratio.
§ The times interest earned ratio.
· 4- Analyse the company stock performance.
o Calculate:
§ The earnings per share.
§ The dividend yield ratio.
§ The dividend payout ratio.
§ The price-earnings ratio.
§ Compare the performance of your company stocks versus the S&P 500 in the period.
§ Compare the price-earnings ratio with your biggest competitor.
· 5- Summarize which are the strengths and weaknesses. Which recommendations would you give to the company management to improve its competitive position? Support your answer on your calculations.
Prepare a common size income statement and answer to the following questions:
1.- How is the development of the sales of the company in the period?
2.- What is the development of the Gross margin?
3.- What is the development of the fixed costs as a percentage of sales?
4.- Make your comments and explain numerically the development of the following items:
a) Is the working capital adequate for the business of the company?
b) Comment on the leverage of the company and give an explanation based on calculations.
c) Comment on the cash flow development of the period.
d) Explain the difference between Net Income and Operating Cash Flow in the last year.
Rubrics
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