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Homework answers / question archive / ACG 6026 Financial Analysis Assignment Analyze real world companies based on the requirements listed below from the point of view of an analyst/investor

ACG 6026 Financial Analysis Assignment Analyze real world companies based on the requirements listed below from the point of view of an analyst/investor

Finance

ACG 6026 Financial Analysis Assignment

Analyze real world companies based on the requirements listed below from the point of view of an analyst/investor. Submit a written report to Canvas by Week 7 (Sunday 11pm).

 

Compare and evaluate Tesla and General Motors based on their financial statements. The financial statements of 2020 are available in Canvas. Use tables, charts or graphs to present numbers/ratios and provide your interpretation and analysis of the numbers. It is required that present financial information (numbers and ratios) for year 2020. You are encouraged to analyze firm performance based on multi-year information and trend.

 

  • Assess the size and growth aspects of each company based on the following financial statement related items
  • Size
    • total assets and total revenue
    • market cap

 

  • Growth
    • asset growth and revenue growth
    • market to book ratio
    • price to earnings ratio (P/E ratio)

 

  • Use following ratios or financial statemen item to compare and analyze business performance.
  • Profitability
  • gross profit percentage (LO 5.6)
  • return on assets (LO 1.6)
  • return on common stockholders’ equity, earnings per share, and the price/earnings ratio (LO 13.7)

 

  • Solvency
  • debt ratio (LO 2.5)
  • debt to equity (12.6)
  • free cash flows

 

  • Liquidity
  • current ratio (LO 4.6)
  • acid-test ratio (LO 8.5)

 

  • Operating Efficiency
  • inventory turnover, days’ sales in inventory (LO 6.6)
  • accounts receivable turnover ratio, and days’ sales in receivables (LO 8.5)
  • asset turnover ratio (LO 9.6)

 

 

 

Formulas

Firm Size

Total Assets or Total Revenues, or Market Cap

Growth Aspects

Asset Growth

(Assets t – Assets t-1)/Assets t-1

Sales Growth

(Sales t – Sales t-1)/Sales t-1

Market to Book

Market Value of Equity/ Book value of Equity

Price Earnings Ratio (P/E)

Market Price Per Share/Earnings Per Share

Profitability Ratio

Gross Profit percentage

Gross Profit/Net Sales

Return on Assets

Net Income/Average Total Assets

Return on Equity

(Net Income – Preferred Dividends)/Average Common Stockholder’s Equity

Liquidity Ratio

Current Ratio

Current Assets/Current Liabilities

Acid-test Ratio (Quick Ratio)

(Cash + Short Term Investments + Accounts Receivable)/Current Liabilities

Solvency Ratio

Debt to Asset

Total Liabilities/Total Assets

Debt to Equity

Total Liabilities/Total Equity

Free Cash Flows

Cash Provided by Operating Activities – Capital Expenditures – Cash Dividends

Activity Ratio

Inventory Turnover

Cost of Goods Sold/Average Inventory

Days in Inventory

365/Inventory Turnover Ratio

Accounts Receivable Turnover

Net Credit Sales/Average Accounts Receivable

Days in Collection

365/Accounts Receivable Turnover

Asset Turnover Ratio

Net Sales/Average Total Assets

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