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Review and Interpretation of Financial and Operational Data You can use MS Money http://incremental. Ms. Com as your primary source for the data necessary to answer sections B & C: Enter your trading symbol into the “Name or symbols” dialog box and click on “Get Quote. ” The initial screen is the “Quote” screen. You will see menu tabs below the stock price along with other information options. The menu selections change according to which screen you are on, but you can always get back to this “Quotes” screen by choosing the “Quotes” option on the menu.
If you need to look up a definition or how an item is calculated, please refer to Investigated. Com: http://www. Investigated. Com/dictionary A worksheet has been provided on Blackboard to facilitate the collection of the data needed to answer sections B & C. Please download and complete the data collection worksheet and turn in a printout of it along with your assignment. (The worksheet on Blackboard is a protected Excel workbook file. Enter data only in the blank spaces; calculations will occur automatically. Further specific instructions are provided below.
You do not need to repeat the raw data in your answers to the questions. A: Your name, company name, exchange and trading symbol as before. B: Valuation Analysis Data From “Quote” page, click on “Financial Highlights” under “Fundamentals” in the menu selections along the left-hand side of the screen. Enter the following data into the worksheet: iv. Vi. ANGST 475 Total shares (voting stock; common stock) outstanding Price of common stock. Market Cap. (Short for market capitalization, which is the total market value of common stock. )
Cross check of Market Value: (Automatically calculated by worksheet) Share Price X Number of Common Shares, which should approximately match the Market Capitalization, subject to rounding. Book Value Per Share. (Automatically calculated by worksheet) Book Value = Book Value Per Share X Number of Common Shares Spring 201 5 Page 1 C: Strategic Audit Data From the “Fundamentals, Key Ratios” sub-menu on MS Money, enter the following: For each measure, list your company’s results, the industry average value, and the results from your closest/strongest competitor in corresponding restores column.
Growth Rates: 5-year average annual sales growth % Growth Rates: 5-year average annual net Income growth %. Profit Margins: 5-year average gross margin %. Profit Margins: 5-year average pre-tax margin%. Financial Condition: Debt/Equity Ratio. Financial Condition: Current Ratio. Financial Condition: Interest Coverage (aka Times Interest Earned). Viii. Investment Returns: 5-year average return on assets. Ix. Investment Returns: 5-year average return on capital. Management Efficiency: Income/Mooneye Management Efficiency: Inventory Turnover (if applicable)
Management Efficiency: Asset Turnover Answer the following questions: a) Ten-Year Summary: Are there any trends, either positive or negative, worth noting in Net Profit Margin, Debt/Equity, Return on Equity, Return on Assets or Interest Coverage? B) Applying Peter Trucker’s “Five Necessary and Sufficient Measures” (see notes from Internal Environment: CIFS, Skips and Performance) and using sales growth as a substitute indicator for market and innovation performance, briefly discuss your company’s strategic health based on these ratios and rates Of return.
Be Sure to consider how their performance compares to industry averages and that of their strongest competitors. Part 2: Briefing Memo to the Board of Directors In the course of completing all four of the assignments this semester, you should have developed a good understanding of the business and its competitive environment. Based on your cumulative analyses, prepare a briefing memo to the Board of Directors Executive Committee. The memo should be from you in your role as Strategy Consultant to the business unit you have been analyzing and should include the following: ) A situation overview and SMOTE summary.