Financial Analysis, Financial Evaluation, and Financial Recommendations

$1.$ Financial Analysis

A$.$ Financial Calculations:

Using the latest quarter$$s financial statements for your chosen business and the

Financial Formulas spreadsheet, calculate the financial formulas below to assess the

business$$s financial health.

$$ Working capital:

o $$581,636,000$

o $[$Write the result of the calculation and what it says about the company$$s health.$]$

$$ Current ratio:

o $1\mathrm{.}53$

o $[$Write the result of the calculation and what it says about the company$$s health.$]$

$$ Debt ratio:

o $\mathrm{.}64$

o $[$Write the result of the calculation and what it says about the company$$s health.$]$

$$ Earnings per share:

o $34\mathrm{.}44$

o $[$Write the result of the calculation and what it says about the company$$s health.$]$

$$ Price and earnings ratio:

o $53\mathrm{.}22$

o $[$Write the result of the calculation and what it says about the company$$s health.$]$

$$ Total asset turnover ratio:

o $\mathrm{.}31$

o $[$Write the result of the calculation and what it says about the company$$s health.$]$

$$ Financial leverage:

o $2\mathrm{.}72$

o $[$Write the result of the calculation and what it says about the company$$s health.$]$

$$ Net profit margin:

o $\mathrm{.}38$

o $[$Write the result of the calculation and what it says about the company$$s health.$]$

$$ Return on assets:

o $\mathrm{.}12$

o $[$Write the result of the calculation and what it says about the company$$s health.$]$

$$ Return on equity:

o $\mathrm{.}33$

o $[$Write the result of the calculation and what it says about the company$$s health.$]$

B$.$ Working Capital Management:

$[$In one paragraph, explain the impact of working capital management on the business$$s operations. Provide examples to support your claims.$]$

C$.$ Financing:

$[$In one paragraph, explain how a business finances its operations and expansion.$]$

D$.$ Short$-$Term Financing:

$[$In one paragraph, explain how potential short$-$term financing sources could help the business raise needed funds for improving its financial health. Base your response on the business$$s latest financial information.$]$

E$.$ Bond Investment:

$[$In one paragraph, analyze the risks and benefits of the business choosing to invest in a

corporate bond, including the necessary ethical considerations, appropriate calculations, and examples to support your analysis.$]$

F$.$ Capital Equipment:

$[$In one paragraph, analyze the risks and benefits of the business choosing to invest in capital equipment, including the necessary ethical considerations, appropriate calculations, and examples to support your analysis.$]$

G$.$ Capital Lease:

$[$In one paragraph, analyze the risks and benefits of the business choosing to purchase a capital lease, including the necessary ethical considerations, appropriate calculations, and examples to support your analysis.$]$

$2.$ Financial Evaluation

In this section of the report, you will evaluate the three available financial options for the business and recommend which option or options are the best for the business to choose.

H$.$ Bond Investment:

$[$In one paragraph, write your assessment of the appropriateness of a bond investment as an option for the business$$s financial health, using your financial analysis and other financial information to support your claims.$]$

I. Capital Equipment:

$[$In one paragraph, write your assessment on the appropriateness of a capital equipment investment as an option for the business$$s financial health, using your financial analysis and other financial information to support your claims.$]$

J$.$ Capital Lease:

$[$In one paragraph, write your assessment on the appropriateness of a capital lease purchase as an investment option for the business$$s financial health, using your financial analysis and other financial information to support your claims.$]$

$3.$ Future Financial Considerations:

$[$In one paragraph, describe the business$$s likely future financial performance based on its latest financial well$-$being and risk level. Use financial information to support your claims.$]$