This week you will gather the information to design the organizational chart for your company, the ticker symbol, the countries your company operates in, the major line of business they are in and their biggest competitors. You will click on the link above to access your Capstone Case Study Slides (with your name and company) to update your information. You may have creative liberties in the Slide design.
Update your Capstone Case Study Slides with the information below for this week & next (do not put off as this is A LOT of information hence why it spans two weeks):
Calculate the figures from Chapter 4 for your company.
Use all of the formulas from Table 4.2 only. Please remember if your company doesn’t sell products but rather services, you will not have inventory and thus will be unable to calculate the inventory ratios. All other ratios are REQUIRED. You must calculate ratios (do not get them from a website as this does not demonstrate proficiency in the subject matter). 4.2 will contain quite a few ratios. In addition to the industry average, you may also want to include the competitor for comparison purposes.
Financial Statements (graphic and link)
What do the ratios tell you immediately about the company?
What are some potential problems (uses and limitations) with the information received from the ratios?
What about what the ratios tell you compared to peer firms? (HINT: you may have to calculate some for peer firms as well. The top two competitors of the company will do).
Based on this analysis of the ratios of both your company and the peer, which do you think will fair in the long term and why?
Does the change in stock price reflect the changes over the last year that have occurred in the markets as compared to the Dow Jones Industrial Average (DJIA)?
Do you expect the price of the stock to increase or decrease based on your ratio analysis?