Part 1 – Research
1 – Take the time to review their most recent financial s
Part 1 – Research
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1 – Take the time to review their most recent financial statements. These can be found in Yahoo Finance, Edgar, your company’s website, etc. When reviewing, I would focus on the income statement, balance, sheet, and statement of cash flows. For further clarifiaction on certain items, please review the footnotes, and I would strongly recommend reviewing their MD&A (Management Discussion and Analysis). All public companies need to prepare this write up as a part of their submission to the SEC.
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2 – Review the current business media (Forbes, Fortune, Motely Fool, etc) and read a few of the recent articles about your company.
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3 – Check our your company’s website. How do they make their money? Anything interesting in their press releases? Any interesting initiatives?
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3 – Start to form a picture in your mind as to what is going on in this company. You have seen their financials, read a few articles and reviewed their web page. Can you draw any parallels between these? Can you tell a story of your company?
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Part 2 – Paper
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I would like you to write a paper of no more than 5 pages that tells what is going in with your company from a financial perspective during the last few years. Your paper should address the following areas:
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1 – Provide a background on your company. Please share some of their history, what is their business all about, are they global, who do they compete with, etc.
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2 – Prepare an overview of their financial performance during the last couple of years. For example, what is going on with their revenue (is it increasing or decreasing)? Are they generating positive cash flow? Are the profitable? Does their revenue trend correlate to their profit trend? What is going on with their balance sheet? How are their assets trending? Their liabilities? More specifically, what is going on with their current assets and current liabilities?
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*** Please leverage any information you can from your articles or their financial statements to tell me why this trend is occuring?*** (for example, is revenue declining because of competition? is profit growing because of a layoff?)
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3 – In your reveiew of their financials, did you note any significant transactions? Can you explain what happened and how this impacted their financials? For example, did they acquire another company and take on significant debt?
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4 – What is your assessment of the overall financial health of this organization? Do you see any opportunities? Do you see any risks?
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5 – Based on what you have learned about your company, what would be your recommendation for them to increase their cash flow quickly, within the next year? Do you think they could pull off your recommendation?
