Financial Analysis Project

Description

https://www.sec.gov/edgar/searchedgar/companysearch.html

The purpose of this assignment is to analyze a company and make an informed decision about the company’s past performance and its future potential, while utilizing the basic functionality of Excel to complete your analysis. Students must choose one company from the list below to analyze for both parts of the project.

Under Armour: UA
Coca Cola: COKE
Home Depot: HD

Find the most recent annual report (10-K) from the following website, searching by the company’s ticker symbol shown above in the search bar: https://www.sec.gov/edgar/searchedgar/companysearch.html (Links to an external site.). You will download the Excel version of the financial statements (or copy them into Excel) and perform all ratios using Excel. You will also use the written version of the 10-K.

PART I (30 POINTS)
Describe the history, development, and primary operations of the corporation. What do you find interesting about the company? Why did you choose this company? Obtain this information from the 10-K, company website, Google, etc. (Limit discussion on #1 to one page maximum.) (4 points)
What is the purpose of the section of the 10-K entitled “Management Discussion and Analysis”? Discuss this portion of the 10-K. What is interesting? What can you tell about the company and their management? (3 points)
What has been the lowest price of the common stock in the last year? What has been the highest price of the common stock in the last year? Include a one year historical graph of stock price – you can get this graph from yahoo finance.(3 points)
What has been the trend in the stock price over the past year from today’s date and prior (upward, downward, volatile)? Find at least one piece of news that is reflected in stock price and discuss the event and change in stock price. This could be the announcement of a new product, mergers, acquisitions, etc. Discussion required here. This discussion must be in your own words and your interpretation of the stock price. (4 points)
Has there been a growth in profits (Net Income) over prior years? Discuss and include the net income numbers for the last two years. If you do see growth, why? If not, why not? Obtain the earnings per share amounts from the face of the income statement and include these in your discussion. A discussion is required here about the company income fluctuations, EPS, and what has been going on with the company to contribute to income fluctuations. Again, this discussion must be in your own words and your interpretation of company profits, EPS, etc. (4 points)
What does the 10-K and/or company website say regarding ethic responsibility as a company? Do you think this is sufficient? Is the company doing their part to create an ethical workplace? In your opinion, are they maintaining ethical practices? If you cannot find this information in the 10-K, Google the company name and ethics. Research the company’s ethical policies and summarize. (3 points)
Invest or Not? Given your research thus far, would you invest in this company? Why or why not? Justify your decision based on the 6 questions preceding this. Discussion here approximately 1 page. (5 points)
Overall format, spelling, punctuation, grammar, citations. When using outside sources including websites, the 10-K, etc. you must cite your sources. (4 points)