Financial Statement Analysis Project:
Project Overview-
The main objective of this project is for you to study the annual report of a publicly-traded US company in depth. You will be comparing your firm to a peer. You can assume that an investment advisor has hired you to write a report on whether your firm's stock should be purchased for their clients' portfolio. The project may be done alone or with a partner of your choosing from either of Prof. Keating's two sections. The goals are:
- To use financial accounting information for decision making,
- To become familiar with an annual report and key financial ratios, and
- To learn about stock valuation and investing
Time Line-
February 17 Complete Firm and Group Choice Survey by 9AM
March 2- Bring print out of the firm's audited financial statements, starting with auditor Opinion and through the end of the footnotes. Download the ratio template from Course website and bring it on your laptop to class.
March 23- Ratio Template and 2 years of 10-Ks to be uploaded by 9AM on course webpage in Assignment Folder
March 24- Prep Work: (1) Rework Ratio Template, (2) Background Research, (3) Peer
April 12- Selection, and (4) Lab Pre-Work (see details below)
April 13- Financial Analysis Lab (bring laptop to class, see details below)
April 20- No class. Free time to work on FSA project with partner.
April 27- Financial Tearsheet Analysis due at 9AM on course webpage in Assignment Folder
Prep Work-
1. Rework Ratio Template (
2. Background Research:
- Research your firm and industry by looking for 1-3 sources on each.
- A recommended place to start is: http://www.bu.edu/library/guide/career/industry- analysis/. Look at the industry and firm, esp. SWOT analyses (MarketLine)
3. Peer Selection:
- Download the compiled ratio template once provided by Prof. Keating
- Review the first page of the FSA ratios to identify prospective peers
- Review the ratios of the potential peers and select a peer.
- If you have questions, you may discuss your peer ideas with Prof Keating
4. Lab Pre-work:
- Bring your research and your laptop to class
- Have loaded on your computer: Tearsheet Template, Complete FSA ratios, Firm 10-Ks
- Register for YCharts account (7-day free trial) at https://ycharts.com/
Financial Analysis Lab-
Lab Time will be spent working on the Tearsheet Template. The focus will be on:
- How to do the written analysis
- Ratios - Yours and your peer's data will be imported into the template
- Valuation Highlights - Current data reported by Google Finance & Yahoo Finance
- Accounting Highlights - Identified from audited financials
- Graphs - from YCharts or ADVFN
Financial Statement Tearsheet (See Appendix A for more instructions)
Advice on your written analysis:
- Some factors to consider:
o Analyst opinions and earnings estimates
o The economic outlook
o The industry outlook
o Your firm's market share
o Your firm's recent revenue and earnings growth and growth plans
o Ratios as compared to peer(s)
o Your firm's business model
o Role from insiders and key shareholders
- In the firm profile and SWOT analysis, please be sure that you communicate the breadth and depth of your thinking. As this is an accounting course, you should include specific numerical amounts and ratios to justify your position. Consider having ½ to ¾ of your SWOT points include your firm's (and the peer's) ratios.
- You will need to provide a target price and also analyst recommendation (Strong Buy, Buy, Hold, Sell, Strong Sell). You can rely on what stock analysts think already and adjust if you feel your outlook is significantly different. Not your target price and recommendation should be consistent. If you say strong buy, then your target price should be higher than the current price.
Comment: I need help with my accounting project.
I am attaching the project guideline (pdf) as well as the Tearsheet excel file which I have to compete (there are three pages in the excel file which has to be completed)
I have already finished the Ratio Template myself but attaching it as a resource.
I need this homework done as soon as possible, hopefully by tonight.
My assigned firm is Five Below Inc.
Attachment:- Assignment.rar