ABF 402 – Issues in Corporate Finance
FINANCIAL ANALYSIS PROJECT
A comprehensive financial analysis of the company must be conducted. This should include ratio analysis, analysis of common-size financial statements, computation of the self-sustainable growth rate as well as the Altman bankruptcy prediction model’s Z score. The objective of this investigative analysis is to ascertain the possible reasons for differences in this company’s financial performance compared to other companies in the industry over the past five years. This assignment will provide acute insight into the reasons for the differences in financial success.
SUGGESTED FORMAT OF GROUP RESEARCH REPORT
- Executive Summary (should not exceed one page)
- Economic Analysis (Analyze the current state and future trend of the economy of the country where the selected company is based. Discuss the likely ramifications of the economic outlook for the future performance of the company)
- Detailed industry overview and the likely impact of the trends in the industry environment on the financial performance of the company.
- Company profile
- Analysis of Operations
- Quantitative analysis
- Ratio Analysis
- Z-Score Analysis
- Common-size financial statement analysis
- Analysis of
- Capital Structure
- Investment Strategy
- Payout Policy
- Qualitative analysis
- SWOT analysis
- Business Strategy
- Value Chain Activities of the Company (How is it adding value to its customers?)
- Product Portfolio Strategy
- What is the product line of the company?
- Have any new products been introduced lately?
- If so, have these new introductions been successful?
- Is this an innovative company? Why or why not?
- Assessment of growth strategy followed by the company including details of recent M&A deals entered into and any restructuring activities undertaken by the company.
- Management Evaluation
- Demonstrated capability in managing change, project implementation, innovation, strategy formulation, and succession management
- Stability of top management
- Track record of CEO
- Overall assessment/conclusion (Clearly elucidate the reasons for differences in financial performance)
- Bibliography
- Appendix (Provide tables, graphs, etc. in this section and reference them in the body of the paper. Provide a list of items included in the appendix)
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