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For the distribution company McKesson, and using their 10K financial report please answer the following. Please structure your paper exactly as described on the following
For the distribution company McKesson, and using their 10K financial report please answer the following.
Please structure your paper exactly as described on the following pages starting with Section 1, including headings [but leave out parts in [brackets) because those are obviously instructions and placeholders...). Read the notes below before beginning: 1. Show all work related to any metrics that you calculate (you may use a separate page for this if you prefer). 2. A 10-K filing typically has a table of contents-use it! Find the "Financial statements for Section 2 of this project. For Sections 1 and 3, you'll need to read other sections where management discusses their business model, with labels such as Management's discussion and analysis of financial conditions and results of operations, Business, and Risk factors. 3. A 10-K is a long document, so you may find it useful to search for words within the PDF (e.g., "inventory"); use Control+F on Windows or Command+F on Mac. 4. You may treat net sales as Sales $, gross profit as gross margin $, operating profit" or "earnings before interest and taxes as operating margin $, and "earnings before income taxes" or "earnings before taxes as net margin $. If you're not sure about how a financial statement item corresponds to a ratio from your notes, contact me. Section 1: Introduction (15 points) [company name) is a distributor of [product category]. [a few more sentences concisely describing: the nature of the company's business, how large they are, where they operate, and to whom they sell] Section 2: Financial metrics (15 points) Last year This year Percent change Metric Sales $ Gross margin % Operating margin % Net margin % [include four additional metrics of your choice (e.g., leverage, ROA) in the empty rows] The metric that had the most favorable change in the past year was (metric). This means that (your explanation, relate to management's discussion in 10-K]. The metric that had the least favorable change in the past year was (metric]. This means that [your explanation, relate to management's discussion in 10-K]. Section 3: Opportunities and threats (15 points) Opportunities: [Based on the company's financial metrics, what you've learned in class, and management's discussion in the 10-K, highlight two important opportunities for the company related to inventory management, facility location decisions, the macroeconomic or legal environment, or sales force management. For each of these two opportunities, explain your reasoning and relate the opportunity to a specific financial metric.] Threats: (Based on the company's financial metrics, what you've learned in class, and management's discussion in the 10-K, highlight two important threats for the company related to inventory management, facility location decisions, the macroeconomic or legal environment, or sales force management. For each of these two threats, explain your reasoning and relate the threat to a specific financial metric. These threats must be distinct from the opportunities (i.e., don't tell me about the same factor that represents both a threat and opportunity; that may be true, but it's not as interesting).] Please structure your paper exactly as described on the following pages starting with Section 1, including headings [but leave out parts in [brackets) because those are obviously instructions and placeholders...). Read the notes below before beginning: 1. Show all work related to any metrics that you calculate (you may use a separate page for this if you prefer). 2. A 10-K filing typically has a table of contents-use it! Find the "Financial statements for Section 2 of this project. For Sections 1 and 3, you'll need to read other sections where management discusses their business model, with labels such as Management's discussion and analysis of financial conditions and results of operations, Business, and Risk factors. 3. A 10-K is a long document, so you may find it useful to search for words within the PDF (e.g., "inventory"); use Control+F on Windows or Command+F on Mac. 4. You may treat net sales as Sales $, gross profit as gross margin $, operating profit" or "earnings before interest and taxes as operating margin $, and "earnings before income taxes" or "earnings before taxes as net margin $. If you're not sure about how a financial statement item corresponds to a ratio from your notes, contact me. Section 1: Introduction (15 points) [company name) is a distributor of [product category]. [a few more sentences concisely describing: the nature of the company's business, how large they are, where they operate, and to whom they sell] Section 2: Financial metrics (15 points) Last year This year Percent change Metric Sales $ Gross margin % Operating margin % Net margin % [include four additional metrics of your choice (e.g., leverage, ROA) in the empty rows] The metric that had the most favorable change in the past year was (metric). This means that (your explanation, relate to management's discussion in 10-K]. The metric that had the least favorable change in the past year was (metric]. This means that [your explanation, relate to management's discussion in 10-K]. Section 3: Opportunities and threats (15 points) Opportunities: [Based on the company's financial metrics, what you've learned in class, and management's discussion in the 10-K, highlight two important opportunities for the company related to inventory management, facility location decisions, the macroeconomic or legal environment, or sales force management. For each of these two opportunities, explain your reasoning and relate the opportunity to a specific financial metric.] Threats: (Based on the company's financial metrics, what you've learned in class, and management's discussion in the 10-K, highlight two important threats for the company related to inventory management, facility location decisions, the macroeconomic or legal environment, or sales force management. For each of these two threats, explain your reasoning and relate the threat to a specific financial metric. These threats must be distinct from the opportunities (i.e., don't tell me about the same factor that represents both a threat and opportunity; that may be true, but it's not as interesting).]Step by Step Solution
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