The paper you wrote on GM and Ford will culminate in a short presentation in which each student will assume the role of an analyst and make a recommendation to the Board of Directors regarding whether the firm should, or should not, invest in the selected company.
Recommendations must be supported by data and conclusions from the analysis. Presentations should be a maximum of 10 minutes and can be presented in a video format or a voice-over presentation.
The following is the expected minimum content of the financial analysis report.
1. An overview of the corporation.
Provide general information regarding the type of business, products and/or services, location of headquarters, name of CEO, number of employees, and countries of operation, etc.
2. The latest fiscal year financial statements for both the chosen company and the benchmark company.
Insert the income statement, balance sheet, and statement of cash flows (as retrieved above from the SEC or company’s website) into the report.
3. Discussion/Overview of each of the latest fiscal year financial statements.
Discuss the overall financial results of the company as the financial statements indicate for the selected company.
4. Analysis of the company’s financial operations and status.
Utilize the ratios calculated and information gathered above to analyze and discuss the financial operations and status of the company as revealed by, or inferred from, the ratios.
Compare and discuss the selected company’s ratios to the benchmark company’s ratios.
Provide/compare “Industry Averages” for each ratio calculated for the selected and benchmark company.
5. Conclusions/Recommendations regarding the current and future operations of the company.
Summarize the key and specific financial conclusions for the selected company, utilizing the findings from the analysis above.
Provide any recommendations for the future that might be offered the company, based on the ratio analysis and conclusions.
Indicate if you would, or would not, invest your financial capital in the selected firm as a shareholder. You must provide support for your decision by using the numerical data and conclusions from your analysis.
Indicate if you would, or would not, invest your human and intellectual capital in the firm as an employee. You must provide support for your decision by using the numerical data and conclusions from your analysis.
