Essentials of Finance

Essentials of Finance

Prior to beginning work on this assignment,

• Review Chapters 1 and 2 in the Essentials of Finance (2nd ed.) textbook.
• Complete the Week 1 – Learning Activity.
• Complete the Week 1 – Assignment 1.
• Review the information for the Week 5 – Final Presentation of this course.

Reflect

Trends describe the general direction of movement in data over time. For example, Company X may have had increasing revenues from 2020 to 2024. Even with the increase in revenues, Company X may have had decreasing net income over the same 4 years due to inflation in raw material costs. Alternatively, Company Y may have had increasing revenues from 2020 to 2022 but then experienced decreasing revenues through 2025. Financial analysts identify the trends by evaluating changes in the data that appear in the financial reports. Trends can be very steady or widely varied; analysts must rely on the data to explain the trends.

Write

In your paper,

• Describe the business and a brief overview of the company you selected.
• Explain the trends in revenues, operating income, and net income over the last 5 years using the PDFs you downloaded from Mergent Market Atlas.
  • Cite the growth rates to explain increases or decreases over the years.
• Explain the changes in gross margin, operating margin, and net profit margin over the last 5 years, using the common size ratios on the Income Statements with Common Size Ratios PDF you downloaded from Mergent Market Atlas.
• Explain the trends in total current assets, total assets, total liabilities, and total shareholders’ equity over the past 5 years, using the PDFs you downloaded from Mergent Market Atlas.
  • Cite the growth rates to explain the increases or decreases over the years.
• Explain the changes in total current assets as a percent (%) of total assets, total liabilities as a percent (%) of total assets, and total shareholders’ equity as a percent (%) of total assets over the past 5 years, using the Balance Sheets with Common Size Ratios PDF you downloaded from Mergent Market Atlas.
• Determine the company\\\’s strengths and weaknesses based primarily on the trends in items discussed from the income statements and balance sheets.
• Discuss how the financial strengths and weaknesses you identified can inform your expectations of the company\\\’s future risk and future cash flow.

Format

The Financial Statement Analysis paper

• must be 2 to 3 double-spaced pages in length (not including title and references pages)
• must include a separate title page with the following in title case:
  • title of paper in bold font
    • Space should appear between the title and the rest of the information on the title page.
  • student’s name
  • name of institution (The University of Arizona Global Campus)
  • course name and number
  • instructor’s name
  • due date
  • Your introduction paragraph needs to end with a clear thesis statement that indicates the purpose of your paper

Requirements: clear

Answer preview to Essentials of Finance

APA

600 WORDS

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