On Studybay you can order your academic assignment from one of our 45000 professional writers. Hire your writer directly, without overpaying for agencies and affiliates!
Check price for your assignment
5 pages essay include information below. PART A: Company Background Identify the stock exchange(s) where your company stock trades. What is the ticker symbol of your company? Briefly explain the major operations of your company. Record the closing price of the stock at the end of the company’s most current fiscal year. Identify the trend of the stock price from the start of this year (e.g. for a company with a calendar fiscal year, what is the price trend from January 1 through December 31?). Remember that not all companies may have fiscal year ends that correspond to calendar year ends, so please identify the fiscal year period(s). Understanding the Annual Report and 10K: Profit, Capital, and Cash Flow How does current year’s net income (i.e., earnings) compare with that in previous years? Compute the annual growth rate in earnings for the last three years. [For example, if earnings in Year 1 and 2 are 100 and 125 respectively, the growth rate from Year 1 to Year 2 is 25%]. What earnings trend do you observe and what factors may be causing this trend? Calculate the gross margin percentage (Gross Profit divided by Net Sales) for the last three years. What trend in gross margin do you observe and what factors may be causing this trend? Did stockholders’ equity change significantly during the year? If so, briefly explain the cause(s) for the change. Compare the cash flows from operating activities for your firm with the net income for the most recent year. What factors have contributed to the difference between these two numbers? What is the capital structure of your company (i.e., what percentage of the total assets of the company is financed through liabilities, and what percentage through stockholders’ equity)? What does this structure (the structure of debt to equity to finance assets) suggest to you (i.e. is this high, potentially dangerous etc.)? Did the company receive assurance via an audit from a public accounting firm? Read the auditor’s report of the company and explain the purpose of the audit from the auditor’s perspective. Identify the name of the auditing firm. In some cases, if the company changed auditors, identify the initial and subsequent auditing firms. Were there any material issues noted by the auditors? Note: the audit report is often called the “Report of Independent Registered Public Accounting Firm”. PART B: The objective here is for you to analyze the company in terms of its profitability, solvency, and liquidity, and to provide your investment and credit recommendations. Using the information you calculated on your MS Excel worksheet, address each of the following questions. Use the results of your ratio and other analyses to support your answers: You are to discuss the following ratio categories for your company: (i) Profitability (ii) Turnover (activity) (iii) Liquidity (iv) Solvency (v) Other (as applicable) Look up what each of these terms mean, and which ratios support the analysis of each. You can state what each ratio ‘tells’ us in general (do not report how the ratio is calculated – this is given in the excel file). Considering what the ratio is ‘telling’ us, analyze how your company is performing, and compare to your competitor. After presenting each of the individual ratios under their respective categories, finally, summarize how your company is performing in each of the five categories (profitability, turnover, liquidity, solvency, and other). The below recommendations will be based on these conclusions. Recommendations To conclude your report, provide recommendations for whether: a. Creditors should loan money to this company in the short-term b. Creditors should loan money to this company in the long-term c. Investors should buy, hold, or sell the stock (use the competitor as a baseline, and be sure to consider the current price of the stock) Our company is Berkshire Hathaway. Our competitor company is Blackrock.
5 pages essay include information below. PART A: Company Background Identify the stock exchange(s) where your company stock trades. What is the ticker symbol of your company? Briefly explain the major operations of your company. Record the closing price of the stock at the end of the company’s most current fiscal year. Identify the trend of the stock price from the start of this year (e.g.