jc

company ratio analysis

united healthcare





conduct a complete analysis of a business. A key feature of the project is that it requires your team to identify and obtain the relevant information. Thus, in addition to being evaluated on your ability to apply the tools of analysis described in the course, you will also be evaluated on your ability to identify and obtain the relevant information. 

Each team will create a website to display the final company analysis. The website will contain the following information:


Company Background and Strategy

Briefly describe the company's industry, markets, products, and specific lines of business. Discuss its strategy for success and, most importantly, the sustainability of profits generated by the strategy. Refer especially to business description and risk factors of your company's most recent 10-K (MD & A Analysis). You may also use information from the company website.


Notes to the Financial Statements

Discuss key aspects of the information provided in the company Notes to the Financial Statements. Address the following three areas:


  • Significant Accounting Policies
  • Contingent Liabilities (if any)
  • Other specific notes that stick out as interesting or potentially significant to the business and/or important to investors such as M&A, R&D, business reorganizations, etc.


Discuss how this information is helpful for assessing the financial health of the company.



Financial Analysis Techniques

Discuss at least 3 techniques of financial analysis (one must be ratio analysis). The techniques chosen can be either quantitative or qualitative. Comment on the pros and cons/limitations of each technique.



Ratio Analysis & Common Size Statements (Trends)


(1) Using Appendix 5: Summary of Financial Ratios, choose two ratios from each category (liquidity, activity, leverage, profitability, and market). You will have a total of 10 ratios for each of the three years presented. Display ratios in a chart as follows.

 


Use the three most recent completed years for which financial statements are available.



20XX (1)

20XX (2)

20XX (3)

Liquidity







  Ratio 1







  Ratio 2















Activity







  Ratio 1







  Ratio 2















Leverage







  Ratio 1







  Ratio 2















Profitability







  Ratio 1







  Ratio 2















Market







  Ratio 1







  Ratio 2








(2) Create a common size balance sheet and income statement for the same 3-year period.


(3) Discuss the overall results of the ratios and common size statements. Be specific and thorough. It's okay to speculate about what the numbers may mean and the potential impact on the company. What trends do you notice?


Industry Comparison


Search the company on the MSN Money website. Find the industry ratios for the following:


  • Current Ratio
  • Debt to Equity Ratio
  • Return on Assets
  • Return on Equity
  • Inventory Turnover
  • Asset Turnover


(1) Display the ratios in a chart as follows:



(Use the most recent year for which financial statements are available.)


 

Company

Industry

 

20XX

20XX

Ratio 1



 

Ratio 2



 

Ratio 3



 

Ratio 4

 

 

Ratio 5





Ratio 6






(2) Compare and contrast the company with the industry ratios.


Overall Assessment of Company


Based on (1) the complete analysis conducted and (2) general company research (news articles), discuss the team's overall assessment of the company. Be thorough. This is a detailed assessment bringing together all the elements of the analysis and research the team has conducted.


Website Resources

You may use any website creation platform the team chooses. Some options are Google Sites, Weebly, and Wix. There is no need to purchase a website builder for this assignment. The resources listed below all offer FREE services.


Google Sites

  • Video tutorial: https://www.brandman.edu/why-brandman/dedicated-resources/academic-support/multimedia-writing-and-design-support/mwds/publishing/google-sites


  • Google Sites Help Center https://support.google.com/sites/?hl=en#topic=6372850

Weebly

  • Guides: https://hc.weebly.com/hc/en-us

Wix

  • Getting started: https://support.wix.com/en/article/getting-started-with-wix
  • Editor basics: https://support.wix.com/en/getting-started/site-layout 

Additional Instructions

  • Be creative! By presenting your project in a website format, the team can be really creative in how to display the information.
  • Include design elements (e.g. colors, headings, visuals/pictures, videos, etc.). Your website design should capture the image of the company.
  • Include a page for APA formatted references. Make sure to cite any references in text as well in APA format. Make sure to include direct links to where you got the ratios from (or financial statements used to calculate the ratios)
  • Make sure that all team members have editing rights and access to the website.
  • Make sure that the website is published and that the instructor will be able access it through the link you provide.
  • Each team member must upload the link to the website. (If you don't upload the link in Blackboard (Week 8 Assignments folder); you don't get a grade for it.)

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26 Apr 2021
Due Date: 30 Apr 2021

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