MANAGERIAL FINANCE 343
Ratio Analysis Project
Use data from the Bloomberg (Capital Markets Lab) database or Mergent Online (also called FISOnline) to complete the project associated with your company and its competitor. Bloomberg can only be accessed in the Capital Markets Lab.
(1) (10 pts) Overview. In a paragraph, describe the industry in which your company operates. For example, you might discuss the following:â€¢ Key competitors, Industry trends, Industry concerns and risk, Industry opportunities
(2) (10 pts) Ratios. Present the following for your company using the most recent three years available through Bloomberg or Mergent Online (use a table format);Quick RatioCurrent RatioTotal Asset TurnoverInventory TurnoverProfit MarginReturn on AssetsReturn on EquityTotal Debt to EquityPE RatioMarket Capitalization
(3) (9 pts) Ratio Analysis. For the following three ratios, briefly indicate the meaning of the values you found in #2 and the trend for the company over the three year period. A) Inventory Turnover, B) Profit Margin, C) Return on Assets
(4) (10 pts) Comparison to Competitor. How does your company compare to its competitors in terms of liquidity, use of leverage, efficiency, profitability, and shareholder value?
(5) (12) DuPont Analysis. Complete a DuPont analysis of your company and discuss its outcome. Write a brief (one paragraph) statement to the CEO of your company indicating the strengths and weaknesses of your company, and suggesting some actions that can be taken to improve the weaknesses.
Format (9 pts) _ Grammar is important. Use spell and grammar check before submitting. _ Include the items requested above, in the order listed. Use the bolded words for each item as a sectionheader before presenting the requested information. _ Submit all of this information by email. Deadline to be given in class.
Use data from your Ratio Analysis Project.
(1)(10 pts) Company Trend. In Excel, create a line chart to show the companyâ€™s performance for profit margin over the last three year period. Appropriately label and title the chart.
(2)(10 pts) Competitorsâ€™ Trend. In Excel, create a line chart to show the competitorsâ€™ performance for profit margin over the last three year period. Appropriately label and title the chart.
(3)(10 pts) Competitor Comparison. In Excel, create a columnar bar chart to highlight a comparison between the company and all competitors for the percentage of debt in the firmâ€™s capital structure in 2013.
(4)(10 pts) Including a Text Box. In Excel, create a text box where you will write a brief summary for management in which you explain the trend in company performance and the comparison to competitors by referring to the charts you have created. Format the document so that all items print on one page. Landscape and portrait print are equally acceptable. Graded for grammar.
Note: Do not include data used to create charts in the printable area
Company:Under Armour Competitor: Nike