In M2: Assignment 2, you identified specific ratios for a specific scenario at Compnet. In the scenario, you determined the ratios for a potential investment opportunity. These ratios will help you interpret the performance trends of Compnet and make appropriate investment and loan decisions.
In this assignment, you will analyze the scenario from M2: Assignment 2 in detail. You will calculate the ratios identified and compare your calculations with two other companies in competition with Compnet. You will create a PowerPoint presentation of your analysis. The components of this presentation are detailed below.
The two companies with which you will compare Compnet's results are Electro Scientific (Stock Symbol: ESIO) and CTS Corp (Stock Symbol: CTS). By conducting an Internet search, you can find the companies' current financial information and determine the trends in the industry. You can obtain the financial information of the two companies at the following links:
Thomson Reuters www.reuters.com
Yahoo Finance www.finance.yahoo.com
MSN: Money www.money.msn.com
The Wall Street Journal: Market Watch www.marketwatch.com
Investor information at the company's corporate Web site
Tasks:
Conduct a financial analysis using Excel:
Calculate the ratios you identified in M2: Assignment 2 for Compnet and the other two companies. Click here to access the ratio calculator to calculate the ratios for the three companies. Save the document as AUO_MS6010_Ratio_Analysis_Lastname_Firstname.xls. Create the following three tabs in this document to represent the data for the three companies:
Compnet
ESIO
CTS
On the basis of your calculations, compare Compnet with the two other companies and answer the following questions:
- Do ESIO and CTS appear to be making effective financial decisions compared with Compnet? How does Compnet's performance compare with that of the other two companies?
- Is Compnet effectively using assets and debt compared with the other two companies? Why or why not?
- If you could invest in only one of the three companies, would you invest in Compnet? Why or why not?
- Create a Microsoft PowerPoint presentation that includes the following:
- A brief description of the scenario you are working with
- The ratios you identified for the scenario in M2: Assignment 2
- A comparison and summary of the financial positions of the three companies
- Your investment decision to invest in Compnet along with the rationale for that decision
- Speaker notes to include background information and points that you would communicate verbally in a presentation