• Only analyze "Haefren Baam" (one of the two companies)
• To avoid typing exhibits, use "Weigandt_Data.xls"

Excel File Edit View Insert Format Tools Data Window Help $ 100% 27 Mon 9:05:38 PM Q OF ... AutoSave . OFF Wiegandt_Data a D Home Insert Draw Page Layout Formulas Data Review View Data Mining Tell me Share Comments Calibri (Body) * 11 A A 29 Wrap Text v General Insert v 2 NAY- O. Ex Delete v Paste BIU E OvAv Merge & Center v $ ~ % " Conditional Format Cell Sort & Find & Analyze Sensitivity Formatting as Table Styles Format DV Filter Select Data 3 '5'\" miml- g Mongzormopu Q o E . 0 . @ IROE Business Analysispdf [page 5of 7) v wmw ilVHEPHGJH QSearch V lRClE Business Analysis.pdl m Business Analysis Details for Each Heading Name of the business: a The legal name of the business. If the company uses a trade name for the public instead of its legal name, show both. When there are two names, the trade name is shown as DBA, which means doing business as. Example of one name: Dana Corporation Example of trade name: Neighborhood Foods, Inc. /DBA, Joe's Burgers Nature of the business: I Is it a manufacturer, wholesaler, retailer, service business, farming, utility, etc.? o In what industry? a For example: "Auto parts manufacturer," \"Plumbing supply wholesaler," \"Women's apparel retailer,\" "Ophthalmologist" Marketing analysis: I What is the nature of the company's product? 0 What inuences the demand for this particular product? How does demand change over time? Is demand cyclical? Seasonal? Are there any recent developments? Are sales growing? At what rate? What is driving growth? Are sales strengthening? Weakening? o How is the companifs product differentiated from the products of other companies? Why do customers buy one product over another? 6 Preview File Edit .0. mlaiaiw View Go Tools Window Help LII {1) >3 '5'\" 1mm l- g Mongzmms PM Q o E @ IR05 Business Analyshpdf [page 5 of 7) v llV|l|ll QSearch V lRClE Business Analysis.pdi o How is the companifs product differentiated from the products of other companies? Why do customers buy one product over another? 0 What is the nature of competition? How strong is the company's competitive position? How do you see it changing? How is the product priced? How is the product promoted? How is the product distributed? Is the company's market position improving or deteriorating? How successful have their marketing efforts been? Do you see problems or opportunities? c For each item consider what has happened and what you believe will happen. .00. Operations analysis: 0 This basically covers the asset side of the company and how it produces or provides its product. 0 How does the company produce its product (if a manufacturer) or obtain its product (if a retailer or wholesaler)? 0 What is the nature of the asset requirements for the company? Is the company asset intensive (i.e., does the rm require a large amount of assets to generate sales)? Why? A rm that is asset intensive will have a low TAT. See the DuPont analysis table provided in class to gain some perspective. ' Preview File Edit View Go Tools Window Help Lil {D >k '' miml- g Mongzormgpu Q o E . 0 . Q IROE Business Analysispdf [page 6 of 7) v wmw .l"..ll\\.lll QSearcn ' 'R053\"5l\""\"""a"'5l5"'"' o How well do they manage sourcing and production, accounts receivable, inventory, and fixed assets? Have there been major changes in assets in the past or predicted in the future? Does the company have any other significant assets? Relevant measures include total asset turnover, average collection period, inventory days, and xed asset turnover. 0 Another dimension of operations is human resources. Are there significant human resources issues affecting performance? 0 Are there any operations-related critical success factors? How well have these factors been managed in the past? What are your expectations? Financial analysis: I How has the company funded itself? Have there been major changes? What precipitated the changes? What factors are driving their funding needs? 0 What are the signicant ndings from analysis of the company's cash ow statement? Is the companifs cash ow healthy? Why? Make sure you include discussion of the cash ow from operations. 0 How liquid is the company? How has that changed? Relevant measures include the current ratio, acid test or quick ratio, accounts payable days, and cash flow from operations. 0 How has leverage changed? ls leverage risk high or low? Relevant measures include debt/equity and times interest earned. I How profitable is the company? What is creating that level of profitability? Are there any signicant changes occurring? Make sure that you consider the components or drivers of profitability. Relevant measures include the individual elements of the common-size income statement and return on equity. All prot discussion should be in this section. Preview File Edit View Go Tools Window Help NO $ 100% 47 Mon 9:07:52 PM Q DE ... IR05 Business Analysis.pdf (page 6 of 7) ~ Q. Search V IR05 Business Analysis.pdf there any significant changes occurring? Make sure that you consider the components or drivers of profitability. Relevant measures include the individual elements of the common-size income statement and return on equity. All profit discussion should be in this section. . Are owner cash distributions appropriate? One relevant measure is the dividend payout ratio. . Do the company's current funding sources appear to be the appropriate type for its needs? Is the type of funding correct or does it need realignment? Summary: Provide a brief summary of your key findings. . Remember that a summary does not present new information. Instead, the summary should pull together the key ideas already developed. 5 6 6 27 P W X N