FIN-350 Financial Analysis Outline
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Financial Analysis Project
Financial Analysis Project
Andrew Schneekloth
Grand Canyon University: FIN-350
Prof. Rodriguez
October 15, 2023
1
Financial Analysis Project
Financial Analysis Project
The purpose of this paper is to analyze an annual Securities and Exchange Commission
(SEC) report for Nike, Inc and evaluate their strengths, efficiency, and effectiveness.
Nike, Inc is a multinational corporation which is known worldwide for their shoes,
apparel, and sports equipment.
Their mission, “is to bring inspiration and innovation to every
athlete in the world, which includes the belief that if you have a body, you are an athlete. We aim
to do this by creating groundbreaking sport innovations, making our products more sustainably,
building a creative and diverse global team and making a positive impact in communities where
we live and work” (10-k Forum).
Nike, like any other company, faces challenges and has to
figure out different types of strategies to keep the company growing in an upward trajectory. A
challenge that Nike faces would be the competition and dealing with marketing the company
on social media where negative publicity can be amplified. One of Nike’s main strategies is to
“keep achieving long-term revenue growth by creating innovative must have products” (10-k
forum). Nike has been doing this by increasing their speed and swiftness to advertise and build
connections with their customers. In 2020, they announced a new digital phase of the consumer
direct offense strategy called consumer direct acceleration. This new strategy should align with
more product creation, focus more on the wants and needs of the consumer, and will use more
in-depth analytic practices to gather more information in order to move forward in the digital
transition of the company. Nike believes this approach will accelerate growth and make the
company more efficient as a whole. Overall, Nike has proven year and year again why they are
one of the top companies in the world using different strategies to increase connections with
consumers as well as growth of their overall business.
2
Financial Analysis Project
Stock Price Trends
Include a visual representation of the stock price trends.
Discuss recent trends in
the company’s stock price
.
(2)
The graph below shows the trajectory of Nike, Inc in a 5-year span
of time starting in 2016 at an investment of $100 and ending in 2021 with the total investment at
$260 a increase of $160 over the 5 years. In 2019, was when the investment started increasing at a
fast rate while at the same time S&P 500 APPAREL started to decrease. Nike is a part of DOW
JONES US FOOTWEAR INDEX because Nike is a part of DOW JONES the price and return of their
stock has a substantial effect on the index.
Evaluation of Efficiency and Effectiveness (3)
Provide an introduction for this section.
Liquidity
Liquidity is the ability of a firm, “to meet short-term obligations as they come due”
(Melicher, R.W., et al. 2019). One measure of liquidity is the current ratio.
The current ratio is
calculated by dividing the firm’s current assets by their current liabilities. Include a sentence for
3
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Financial Analysis Project
what is considered a good range for the ratio
.
Then include what your benchmark company’s
current ratio is and even better if you compare it to its closest competitor. For example, … As of
September 2021, Twitter has a current ratio of 4.09 and one of their biggest competitors,
Facebook, has a current ratio of 4.23 (
Twitter financial statements
, n.d.). Complete the paragraph
by evaluating the company’s ratio in comparison to the competitor and the standard considered
acceptable.
Asset Management
Asset management …
Financial Leverage (Debt Management)
Financial leverage …
Evaluation of Financial Strength (4)
Provide an introduction for this section.
Profitability
Profitability…
Market Value
Market value …
Conclusion
Based on your findings, provide an evaluation of the overall organization. Is this a
company you would invest in or recommend to others, why or why not?
What were the key
metrics as to why you made decision?
4
Financial Analysis Project
References
Remember for every reference (minimum of 3) you should have an in-text citation.
Below are a
couple of examples for format.
Conkright, T. A. (2015). Using the four functions of management for sustainable employee
engagement.
Performance Improvement
, (8), 15.
Curran, T. M., & Prottas, D. J. (2017). Role stressors, engagement, and work behaviors: A study
of higher education professional staff.
Journal of Higher Education Policy &
Management
, 39(6), 642-657.
nke-20210531 (sec.gov)
5
Financial Analysis Project
Appendix
Industry
Company A
Company B
$ in millions
As of date ___
As of date____
Cash / Marketable
Securities
AR
Inventory
Current Assets
Fixed Assets
Total Assets
AP
Current Liabilities
Total Liabilities
Total Stockholder’s
Equity
Total Net Sales /
Revenue
COGS
EBIT
Interest Expense
Earnings / Net Profit /
After Tax Profit
Stock Price
6
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Ratios
Company A
Company B
Ratio Category
Ratio Name
Ratio Formula
12/31/21 ratio
12/31/21 ratio
1. Liquidity
2.Asset Mgmt.
3. Leverage
4. Profitability
5. Market
7
Related Questions
Do firms need to consider the so-called corporate social responsibilities in making investment decisions?
See attached related reading
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Read the Chapter 15 Mini Case in Financial Management: Theory and Practice. Using complete sentences and academic vocabulary, please answer questions A and B.
Using the mini case information, write a 250-500 word recommendation of the financial decisions you propose for this company based on an analysis of its capital structure and capital budgeting techniques. Explain why you chose this recommendation.
Mini Case
Assume you have just been hired as a business manager of PizzaPalace, a regional pizza restaurant chain. The company’s EBIT was $120 million last year and is not expected to grow. PizzaPalace is in the 25% state-plus-federal tax bracket, the risk-free rate is 6 percent, and the market risk premium is 6 percent. The firm is currently financed with all equity, and it has 10 million shares outstanding.
When you took your corporate finance course, your instructor stated that most firms’ owners would be financially better off if the firms used some debt. When you suggested this to…
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ans. pls
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The specific financial aspects to be considered with your analysis are:• Profit Margin• Total Owners' Equity.• Current Ratio.• Return on Equity.• Debt Equity Ratio.• Earnings per Share.
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Please provide the correct answer
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Using the findings provide a brief summary about the financial status of each of the companies and provide a recommendation for the investment choice.
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Using the findings, provide a brief summary about the financial status of each of the companies and provide a recommendation for the investment choice.
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After posting excellent sales and net profit in the previous year Dreamit Electronics Ltd set its sights on growth and innovationas it celebrated its 10th anniversary in 2023. It has continually strived to become the leader in the electronics industry in SouthAfrica. The company is also committed to being a good corporate citizen, as it strives to fulfil both its economic and socialresponsibilities.The following reflects the financial position of the company on 31 December 2023:The carrying value of the fixed assets was R30 000 000 whilst the current assets comprised inventory of R9 400 000, accountsreceivable of R8 000 000 and cash of R1 600 000. The equity consisted of ordinary share capital, R17 000 000, and retainedearnings of R6 400 000. An amount of R22 000 000 was owed to Mesa Bank for a long-term loan. Trade creditors were owedR3 600 000.The following projections and proposals were made by Dreamit Electronics Ltd for 2024:The sales are expected to increase from R30 000 000 in…
arrow_forward
After posting excellent sales and net profit in the previous year Dreamit Electronics Ltd set its sights on growth and innovationas it celebrated its 10th anniversary in 2023. It has continually strived to become the leader in the electronics industry in SouthAfrica. The company is also committed to being a good corporate citizen, as it strives to fulfil both its economic and socialresponsibilities.The following reflects the financial position of the company on 31 December 2023:The carrying value of the fixed assets was R30 000 000 whilst the current assets comprised inventory of R9 400 000, accountsreceivable of R8 000 000 and cash of R1 600 000. The equity consisted of ordinary share capital, R17 000 000, and retainedearnings of R6 400 000. An amount of R22 000 000 was owed to Mesa Bank for a long-term loan. Trade creditors were owedR3 600 000.The following projections and proposals were made by Dreamit Electronics Ltd for 2024:The sales are expected to increase from R30 000 000 in…
arrow_forward
After posting excellent sales and net profit in the previous year Dreamit Electronics Ltd set its sights on growth and innovationas it celebrated its 10th anniversary in 2023. It has continually strived to become the leader in the electronics industry in SouthAfrica. The company is also committed to being a good corporate citizen, as it strives to fulfil both its economic and socialresponsibilities.The following reflects the financial position of the company on 31 December 2023:The carrying value of the fixed assets was R30 000 000 whilst the current assets comprised inventory of R9 400 000, accountsreceivable of R8 000 000 and cash of R1 600 000. The equity consisted of ordinary share capital, R17 000 000, and retainedearnings of R6 400 000. An amount of R22 000 000 was owed to Mesa Bank for a long-term loan. Trade creditors were owedR3 600 000.The following projections and proposals were made by Dreamit Electronics Ltd for 2024:The sales are expected to increase from R30 000 000 in…
arrow_forward
After posting excellent sales and net profit in the previous year Dreamit Electronics Ltd set its sights on growth and innovationas it celebrated its 10th anniversary in 2023. It has continually strived to become the leader in the electronics industry in SouthAfrica. The company is also committed to being a good corporate citizen, as it strives to fulfil both its economic and socialresponsibilities.The following reflects the financial position of the company on 31 December 2023:The carrying value of the fixed assets was R30 000 000 whilst the current assets comprised inventory of R9 400 000, accountsreceivable of R8 000 000 and cash of R1 600 000. The equity consisted of ordinary share capital, R17 000 000, and retainedearnings of R6 400 000. An amount of R22 000 000 was owed to Mesa Bank for a long-term loan. Trade creditors were owedR3 600 000.The following projections and proposals were made by Dreamit Electronics Ltd for 2024:The sales are expected to increase from R30 000 000 in…
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MAGIC ELECTRONICS LTD: PROJECTIONS FOR 2024 AND 2025
After posting excellent sales and net profit in the previous year Magic Electronics Ltd set its sights on growth and innovation as it celebrated its 10th anniversary in 2023. It has continually strived to become the leader in the electronics industry. The company is also committed to being a good corporate citizen, as it strives to fulfil both its economic and social responsibilities.
The following reflects the financial position of the company on 31 December 2023:
The carrying value of the fixed assets was R30 000 000 whilst the current assets comprised inventory of R9 400 000, accounts receivable of R8 000 000 and cash of R1 600 000. The equity consisted of ordinary share capital, R17 000 000, and retained earnings of R6 400 000. An amount of R22 000 000 was owed to Ambi Bank for a long-term loan. Trade creditors were owed R3 600 000.
The following projections and proposals were made by Magic Electronics Ltd for 2024:
The sales…
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Please answer in detail
CarniTrin is a manufacturer of Carnival costumes in a highly competitive market. The company's management team is seeking guidance on the use of financial performance measures to identify the key drivers of the company's financial performance and develop a strategy to improve it.
The following data relate to the company for the year 2022:
In its clothing division, the company has $6,000,000 invested in assets. After-tax operating income from sales of clothing in 2022 is $900,000. Income for the clothing division has grown steadily over the last few years.
The cosmetics division has $14,000,000 invested in assets and an after-tax operating income in 2022 of $1,900,000.
The weighted-average cost of capital for CarniTrin is 10% and the 2021’s after-tax return on investment for each division was 15%.
The general manager of CarniTrin has asserted that in the future, managers should have their compensation structure aligned with their performance measures…
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Background Hyde Park Technologies Pty Ltd (HPT), a medium-sized enterprise with a turnover of $100 million per year is considering the purchase of an ERP system. As they have an urgent need to update their accounting system, they plan on purchasing an ERP financial module as the first step and then over time, they plan on integrating this module as part of a larger ERP rollout through the company. Eileen Dover, the CEO of HPT recently issued a request for proposal (RFP) to a number of ERP vendors. To assist the vendors in the preparation of their responses, Eileen has provided the following information: . HPT was founded by Eileen's father (Hans Dover) in 1986. Even though Hans is now in his 70s, he still plays an important figurehead role in the company and will have influence in the choice of vendor. Eileen has emphasised that whilst the presentation materials be to a high professional standard, it is imperative that they clearly and simply articulate the "Hansefits" of the new…
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According to the ACCA 2019 report Social and environmental value creation "As the demands have become more precise and increasingly strategic, there is a clear role for finance teams to be more engaged in the creation of sustainable value." Based on this, identify specific ways that business model innovation can embrace social and environmental value creation. Include examples of current businesses adopting this approach.
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Define the five basic principles finance and justify your analysis by illustrating examples: Choose one or more events described by media (CNN Business, Financial Times, Dow Jones financial news etc.) about companies and financial market. Analyse that event (s) applying the five basis principles of finance. Note: Each principle is to be illustrated by at least one event. The events should be in 2020.Example of an event in media that reflect one of five basic principle of finance:“The biotechnology company Moderna said Tuesday that its vaccine, developed in partnership with the National Institutes of Health, has been found to induce immune responses in all of the volunteers who received it in a Phase 1 study. Moderna coronavirus vaccine shows 'promising' safety and immune response results in published Phase 1 study, but more research is needed The early results are the first for a US vaccine candidate to be published in a peer-reviewed medical journal, in this case the New England…
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On August 1, 2024, Reliable Software began developing a software program to allow individuals to customize their investment
portfolios. Technological feasibility was established on January 31, 2025, and the program was available for release on March 31,
2025. Development costs were incurred as follows:
August 1 through December 31, 2024
January 1 through January 31, 2025
February 1 through March 31, 2025
$ 6,300,000
1,200,000
1,600,000
Reliable expects a service life of five years for the software and total revenues of $8,000,000 during that time. During 2025, revenue
of $2,000,000 was recognized.
Required:
1. Prepare the journal entries to record the development costs in 2024 and 2025.
2. Calculate the required amortization for 2025.
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Prepare the journal entries to record the development costs in 2024 and 2025.
Note: If no entry is required for a transaction/event, select "No journal entry…
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Give typing answer with explanation and conclusion
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1. Choose a multinational company or research the company's financial objectives from 2021 to 2023 (i.e., identify their financial objectives last year or last three years).2. Analyse the industry-specific and real-world business challenges faced by the business organizations while attempting to attain those financial objectives.
3. Evaluate the importance of the company's financial objectives in driving the company's growth plan. Synthesize the importance of finance in the company's value chain.
4. Recommend three financial analysis tools to measure the company's financial objectives and perform the financial analysis to determine if the company financial objectives are being met.5. Develop a financial growth plan which can be used as part of the strategic planning process. Use managerial finance theories to support your response.Note: answer should be in essay form and citations should be made where needed
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help please answer in text form with proper workings and explanation for each and every part and steps with concept and introduction no AI no copy paste remember answer must be in proper format with all working!
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Design of Strategic Business Unit MetroBank is a fast-growing bank that serves theregion around Jacksonville, Florida. The bank provides commercial and individual banking services, including investment and mortgage banking services. The firm’s strategy is to continueto grow by acquiring smaller banks in the area to broaden the base and variety of services it canoffer. The bank now has 87 strategic business units, which represent different areas of servicein different locations. To support its growth, MetroBank has invested several million dollarsin upgrading its information services function. The number of networked computers and ofsupport personnel has more than doubled in the last 4 years and now accounts for 13% of totaloperating expenses. Two years ago, MetroBank decided to charge information services to theSBUs based on the head count (number of employees) in each SBU. Recently, some of thelarger SBUs have complained that this method overcharges them and that some of the…
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Case Study Question
You have just been appointed as the chief finance risk officer of Agorwu limited, a Ghanaian manufacturing company. On your first meeting with the Chief Executive officer of the company, the following information were made available to you. The company is involved in forestry management, timber production, and the export of specialist woods used in the production of fine musical instruments- so called “singing wood”. The company, has a reputation as the world’s finest producer of woods for the production of concert-grade grand pianos. Agorwu has a thirty-year contract to supply all of the piano wood requirements for a leading manufacturer based in japan, in addition to numerous small-scale contracts with clients around the world who specialize in producing high-quality hand-made classical stringed instruments from violins to double bass.
The trees used in piano production take around sixty years to reach to the required level of maturity, but the maple used for the…
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