Please see the attached instructions forwhat is required for this question

For this assignment, you will complete the Financial Overview component of Amazon. To complete this assignment, use the Financial Analysis Toolkit Excel file, provided in the attachment, to complete a financial analysis of Amazon over the last two most recent years available in annual reports. Replace the numbers provided in the Excel file with the appropriate numbers for Amazon. Then, write a 2-3-page financial analysis of your company, addressing the following elements: Identify your company, its industry, and analyze the important segments (percentage of sales or subsidiaries) of your company compared to its industry and its overall business. Perform a complete financial analysis of your chosen company's financial statementshorizontal, vertical (Percentage of Sales and Common-Size), and changes in ratiosfor the last two years. Compare all ratios to industry averages. Evaluate the company's ratios against the industry averages. Explain the significance of the company's ratios when compared to industry averages. Analyze the company's cash flows. Assess the overall financial health of your company based on this financial analysis. A great way to integrate the completed calculations from your Excel sheet into your written analysis is to paste pieces of the worksheet directly into your Word document. You are also encouraged to create graphs or charts from the data that may illustrate your analyses as well. Please notify me when you're done. Thank you so much A 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 B C D E F Tool Kit for Analysis of Financial Statements Financial statements are analyzed by calculating certain key ratios and then comparing them with the ratios of other firms and by examining the trends in ratios over time. We can also combine ratios to make the analysis more revealing, those indicated below are exceptionally useful for this type of analysis. RATIO ANALYSIS (Section 3.1) *NVIDIA Fiscal Years starts and ends on Jan 31, such that FY13 represents Jan 31,2012 to Jan31, 2013 Input Data: 2013 2012 Year-end common stock price $12.26 $13.86 Year-end shares outstanding (in thousands) 616,756 612,191 Tax rate 15% 12% After-tax cost of capital Lease payments (in thousands) $18,998 $21,439 Required sinking fund payments $0 $0 Balance Sheets (in thousands of dollars) Assets Cash and equivalents Short-term investments Accounts receivable Inventories Total current assets Net plant and equipment Total assets 2013 $906,223 $2,995,097 $454,252 $419,686 $4,775,258 $1,636,987 $6,412,245 2012 $767,218 * Added to cash and qu $2,461,700 $336,143 $340,297 $3,905,358 $1,647,570 * In addition to equpme $5,552,928 Liabilities and equity Accounts payable Notes payable Accruals Total current liabilities Long-term bonds Total liabilities Preferred stock (2,00,000 shares: none issued) Common stock (616,756,134 shares oustanding 2013 and 612 Retained earnings Total common equity Total liabilities and equity $356,428 $0 $619,795 $976,223 $608,319 $1,584,542 $0 $720 $3,246,088 $4,827,703 $6,412,245 $335,072 $0 $594,886 $929,958 $477,246 $1,407,204 $0 $700 $2,730,418 $4,145,724 * Added to Total Comm $5,552,928 Income Statements (in thousands of dollars) Net sales Operating costs 2013 2012 $4,280,159.0 $3,997,930.0 $3,631,920.0 $3,349,631.0 51 52 53 54 55 56 57 58 59 60 61 62 63 A B C Earnings before interest, taxes, depr. & amort. (EBITDA) Depreciation Amortization Depreciation and amortization Earnings before interest and taxes (EBIT) Less interest Earnings before taxes (EBT) Taxes (15.0%, 12.4%) Net income before preferred dividends Preferred dividends Net income available to common stockholders Common dividends Addition to retained earnings D $648,239.0 $0.0 $0.0 $0.0 $648,239.0 -$13,800.0 $662,039.0 $99,503.0 $562,536.0 $0.0 $562,536.0 $0.0 $562,536.0 E $648,299.0 $0.0 $0.0 $0.0 $648,299.0 -$15,097.0 $663,396.0 $82,306.0 $581,090.0 $0.0 $581,090.0 $0.0 $581,090.0 F A 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 B C D E F Calculated Data: Operating Performance and Cash Flows 2013 2012 $803,938.0 $513,700.0 $2,440,925.0 $2,161,270.0 $551,003.2 $567,909.9 $562,536.0 $581,090.0 $551,003.2 $567,909.9 $271,348.2 N/A Net operating working capital (NOWC) Total operating capital Net Operating Profit After Taxes (NOPAT) Net Cash Flow (Net income + Depreciation) Operating Cash Flow (OCF) Free Cash Flow (FCF) Calculated Data: Per-share Information 2013 $0.91 $0.00 $7.83 $0.91 $0.44 2012 $0.95 $0.00 $6.77 $0.95 N/A 2013 2012 Industry Average 4.89 4.46 4.20 3.83 2.22 1.3 2013 2012 Industry Average 10.20 38.7 2.61 0.67 11.75 30.69 2.43 0.72 2013 2012 24.71% 0.33 17.33% 46.97 128.36 25.34% 0.34 14.23% 42.94 105.60 2013 2012 13.14% 10.11% 8.77% 11.65% 14.53% 11.67% 10.46% 14.02% Earnings per share (EPS) Dividends per share (DPS) Book value per share (BVPS) Cash flow per share (CFPS) Free cash flow per share (FCFPS) LIQUIDITY RATIOS (Section 3.2) Liquidity ratios Current Ratio Quick Ratio ASSET MANAGEMENT RATIOS (Section 3.3) Asset Management ratios Inventory Turnover Days Sales Outstanding Fixed Asset Turnover Total Asset Turnover DEBT MANAGEMENT RATIOS (Section 3.4) Debt Management ratios Debt Ratio Debt-to-Equity Ratio Market Debt Ratio Times Interest Earned EBITDA Coverage Ratio PROFITABILITY RATIOS (Section 3.5) Profitability ratios Profit Margin Basic Earning Power Return on Assets Return on Equity MARKET VALUE RATIOS (Section 3.6) 4.78 25.6 *Industry leader 1.89 *Industry leader 0.63 Industry Average 39.30% *Industry leader 0.65 *Industry leader 24.40 *Industry leader 196.79 *Incorrect for 2013 and N/A Industry Average 19.96% 17.63% *Industry leader 12.56% 19.43% Industry A B C D E F 114 2013 2012 Average 115 Market Value ratios 13.44 14.60 25.77 *NVIDIA doesn't accoun 116 Price-to Earnings Ratio 13.44 14.60 9.66 117 Price-to-Cash Flow Ratio 11.66 13.09 5.13 *Industry Leader 118 Price-to-EBITDA 1.57 2.05 3.59 119 Market-to-Book Ratio 120 121 TREND ANALYSIS, COMMON SIZE ANALYSIS, AND PERCENT CHANGE ANALYSIS (Section 3.7) 122 123 TREND ANALYSIS Trend analysis allows you to see how a firm's results are changing over time. For instance, a firm's ROE may b 124 the benchmark, but if it has been steadily rising over the past four years, that should be seen as a good sign. 125 126 A trend analysis and graph have been constructed on this data regarding Nvidia's ROE over the past 5 years. (N average data for earlier years has been provided.) 127 128 129 NVIDIA 2009 -1.2% 130 2010 -2.7% 131 2011 8.7% 132 2012 15.9% 133 134 2013 11.7% 135 136 Figure 3-1 Rate of Return on Common Equity 137 138 ROE 139 (%) 140 141 142 28.0% 143 144 24.0% 145 146 147 20.0% 148 149 16.0% 150 151 12.0% 152 153 154 8.0% 155 156 4.0% 157 158 0.0% 159 2009 2010 2011 160 161 ROE AMD -213.1% 107.4% 56.7% 37.7% -111.2% Intel 12.93% 10.82% 25.16% 27.15% 22.66% NVIDIA AMD Intel 2012 2013 A B C D E F 162 163 COMMON SIZE ANALYSIS 164 In common size income statements, all items for a year are divided by the sales for that year. 165 166 Figure 3-2 Common Size Income Statements 167 Industry Composite 2013 Net sales 100.0% Operating costs 72.1% Earnings before interest, taxes, depr. & amort. (EBITDA) 27.9% Depreciation and amortization 0.0% Earnings before interest and taxes (EBIT) 27.9% Less interest 0.0% Earnings before taxes (EBT) 27.9% Taxes (15.0%, 12.4%) 7.3% Net income before preferred dividends 20.6% Preferred dividends 0.0% Net income available to common stockholders (profit margi 20.6% Nvidia 2013 168 100.0% 169 84.9% 170 15.1% 171 0.0% 172 15.1% 173 -0.3% 174 15.5% 175 2.3% 176 13.1% 177 0.0% 178 13.1% 179 180 181 182 In common sheets, all items for a year are divided by the total assets for that year. 183 184 Figure 3-3 Common Size Balance Sheets Industry Composite 2013 185 186 187 188 189 190 191 192 193 194 195 196 197 198 199 200 201 202 203 204 205 206 207 208 209 Nvidia 2013 2012 Assets Cash and equivalents Short-term investments Accounts receivable Inventories Total current assets Net plant and equipment Total assets 13.0% 11.5% 7.1% 5.6% 37.2% 62.8% 100.0% 14.1% 46.7% 7.1% 6.5% 74.5% 25.5% 100.0% 13.8% 44.3% 6.1% 6.1% 70.3% 29.7% 100.0% Liabilities and equity Accounts payable Notes payable Accruals Total current liabilities Long-term bonds Total liabilities Preferred stock Total common equity Total liabilities and equity 12.6% 0.4% 2.3% 15.3% 61.1% 76.4% 0.0% 23.6% 100.0% 5.6% 0.0% 9.7% 15.2% 9.5% 24.7% 0.0% 75.3% 100.0% 6.0% 0.0% 10.7% 16.7% 8.6% 25.3% 0.0% 74.7% 100.0% PERCENT CHANGE ANALYSIS 2012 ### 83.8% 16.2% 0.0% 16.2% -0.4% 16.6% 2.1% 14.5% 0.0% 14.5% A B C D E F 210 In percent change analysis, all items are divided by the that item's value in the beginning, or base, year. 211 212 Figure 3-4 Income Statement Percent Change Analysis 213 214 215 216 217 218 219 220 221 222 223 224 225 226 227 228 229 230 231 232 233 234 235 236 237 238 239 240 241 242 243 244 245 246 247 248 249 250 251 252 253 254 Base year = 2012 Net sales Operating costs Earnings before interest, taxes, depr. & amort. (EBITDA) Depreciation and amortization Earnings before interest and taxes (EBIT) Less interest Earnings before taxes (EBT) Taxes (15.0%, 12.4%) Net income before preferred dividends Preferred dividends Net income available to common stockholders Balance Sheet Percent Change Analysis (not in textbook) Percent Change in 2013 Base year = 2012 Assets Cash and equivalents Short-term investments Accounts receivable Inventories Total current assets Net plant and equipment Total assets 18.1% 21.7% 35.1% 23.3% 22.3% -0.6% 15.5% Liabilities and equity Accounts payable Notes payable Accruals Total current liabilities Long-term bonds Total liabilities Preferred stock (2,00,000 shares: none issued) Common stock (616,756,134 shares oustanding 2013 and 612 Retained earnings Total common equity Total liabilities and equity 6.4% 0.0% 4.2% 5.0% 27.5% 12.6% 0.0% 2.9% 18.9% 16.5% 15.5% DU PONT ANALYSIS (Section 3.8) 255 256 Percent Change in 2013 7.1% 8.4% (0.0%) 0.0% (0.0%) (8.6%) (0.2%) 20.9% (3.2%) 0.0% (3.2%) Nvidia 2013 ROE = 11.65% (Profit (Equity margin) (TA turnover) Multiplier) 13.14% 0.67 1.33 A 257 258 259 260 261 262 263 264 265 266 267 268 269 270 271 272 273 274 275 276 277 278 279 280 281 282 283 284 285 286 287 288 289 290 291 292 293 294 295 296 297 298 299 Nvidia Industry Average B 2012 C 14.02% 20.72% D 14.53% 19.96% E 0.72 0.63 F 1.34 1.65 G 1 2 3 4 5 6 7 8 9 10 012 to Jan31, 11 2013 12 13 14 15 16 17 18 19 20 21 22 23 24 * Added to 25cash and quivalents prepaid expense and deferred income taxes 2013 26 69,701 27 103,736 28 29 * In addition 30 to equpment also includes goodwill, intangible assets, and other assets 31 2013 32 641,030 312,332 33 107,481 34 35 36 37 2013 38 3,193,623 39 -1,622,709 40 9981 41 42 * Added to 43Total Common equity additional paid-in capital, treasuary stock, and accumulated other comprehensive income 44 45 46 47 48 49 50 G 51 52 53 54 55 56 57 58 59 60 61 62 63 G 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 *Industry92 leader *Industry93 leader 94 95 96 97 98 *Industry99 leader *Industry leader 100 *Industry leader 101 *Incorrect for 2013 and 2012 as interest combined is income not expense 102 103 104 105 106 107 108 *Industry leader 109 110 111 112 113 G 114 115 *NVIDIA 116 doesn't account for depreciation in their 10-K statements Same P/E P/CF Ratio because there is no depreciation 117 *Industry Leader 118 119 120 121 122 123 nstance, a firm's ROE may be slightly below 124 d be seen as a good sign. 125 ROE over the past 5 years. (Nvidia and indusry 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 145 146 147 148 149 150 151 152 153 154 155 156 157 158 159 160 161 G 162 163 164 165 166 167 168 169 170 171 172 173 174 175 176 177 178 179 180 181 182 183 184 185 186 187 188 189 190 191 192 193 194 195 196 197 198 199 200 201 202 203 204 205 206 207 208 209 G nning, or base, year. 210 211 212 213 214 215 216 217 218 219 220 221 222 223 224 225 226 227 228 229 230 231 232 233 234 235 236 237 238 239 240 241 242 243 244 245 246 247 248 249 250 251 252 253 254 255 256 G 257 258 259 260 261 262 263 264 265 266 267 268 269 270 271 272 273 274 275 276 277 278 279 280 281 282 283 284 285 286 287 288 289 290 291 292 293 294 295 296 297 298 299 For this assignment, you will complete the Financial Overview component of Amazon. To complete this assignment, use the Financial Analysis Toolkit Excel file, provided in the attachment, to complete a financial analysis of Amazon over the last two most recent years available in annual reports. Replace the numbers provided in the Excel file with the appropriate numbers for Amazon. Then, write a 2-3-page financial analysis of your company, addressing the following elements: Identify your company, its industry, and analyze the important segments (percentage of sales or subsidiaries) of your company compared to its industry and its overall business. Perform a complete financial analysis of your chosen company's financial statementshorizontal, vertical (Percentage of Sales and Common-Size), and changes in ratiosfor the last two years. Compare all ratios to industry averages. Evaluate the company's ratios against the industry averages. Explain the significance of the company's ratios when compared to industry averages. Analyze the company's cash flows. Assess the overall financial health of your company based on this financial analysis. A great way to integrate the completed calculations from your Excel sheet into your written analysis is to paste pieces of the worksheet directly into your Word document. You are also encouraged to create graphs or charts from the data that may illustrate your analyses as well. Please notify me when you're done. Thank you so much A 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 B C D E F Tool Kit for Analysis of Financial Statements Financial statements are analyzed by calculating certain key ratios and then comparing them with the ratios of other firms and by examining the trends in ratios over time. We can also combine ratios to make the analysis more revealing, those indicated below are exceptionally useful for this type of analysis. RATIO ANALYSIS (Section 3.1) *NVIDIA Fiscal Years starts and ends on Jan 31, such that FY13 represents Jan 31,2012 to Jan31, 2013 Input Data: 2013 2012 Year-end common stock price $12.26 $13.86 Year-end shares outstanding (in thousands) 616,756 612,191 Tax rate 15% 12% After-tax cost of capital Lease payments (in thousands) $18,998 $21,439 Required sinking fund payments $0 $0 Balance Sheets (in thousands of dollars) Assets Cash and equivalents Short-term investments Accounts receivable Inventories Total current assets Net plant and equipment Total assets 2013 $906,223 $2,995,097 $454,252 $419,686 $4,775,258 $1,636,987 $6,412,245 2012 $767,218 * Added to cash and qu $2,461,700 $336,143 $340,297 $3,905,358 $1,647,570 * In addition to equpme $5,552,928 Liabilities and equity Accounts payable Notes payable Accruals Total current liabilities Long-term bonds Total liabilities Preferred stock (2,00,000 shares: none issued) Common stock (616,756,134 shares oustanding 2013 and 612 Retained earnings Total common equity Total liabilities and equity $356,428 $0 $619,795 $976,223 $608,319 $1,584,542 $0 $720 $3,246,088 $4,827,703 $6,412,245 $335,072 $0 $594,886 $929,958 $477,246 $1,407,204 $0 $700 $2,730,418 $4,145,724 * Added to Total Comm $5,552,928 Income Statements (in thousands of dollars) Net sales Operating costs 2013 2012 $4,280,159.0 $3,997,930.0 $3,631,920.0 $3,349,631.0 51 52 53 54 55 56 57 58 59 60 61 62 63 A B C Earnings before interest, taxes, depr. & amort. (EBITDA) Depreciation Amortization Depreciation and amortization Earnings before interest and taxes (EBIT) Less interest Earnings before taxes (EBT) Taxes (15.0%, 12.4%) Net income before preferred dividends Preferred dividends Net income available to common stockholders Common dividends Addition to retained earnings D $648,239.0 $0.0 $0.0 $0.0 $648,239.0 -$13,800.0 $662,039.0 $99,503.0 $562,536.0 $0.0 $562,536.0 $0.0 $562,536.0 E $648,299.0 $0.0 $0.0 $0.0 $648,299.0 -$15,097.0 $663,396.0 $82,306.0 $581,090.0 $0.0 $581,090.0 $0.0 $581,090.0 F A 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 B C D E F Calculated Data: Operating Performance and Cash Flows 2013 2012 $803,938.0 $513,700.0 $2,440,925.0 $2,161,270.0 $551,003.2 $567,909.9 $562,536.0 $581,090.0 $551,003.2 $567,909.9 $271,348.2 N/A Net operating working capital (NOWC) Total operating capital Net Operating Profit After Taxes (NOPAT) Net Cash Flow (Net income + Depreciation) Operating Cash Flow (OCF) Free Cash Flow (FCF) Calculated Data: Per-share Information 2013 $0.91 $0.00 $7.83 $0.91 $0.44 2012 $0.95 $0.00 $6.77 $0.95 N/A 2013 2012 Industry Average 4.89 4.46 4.20 3.83 2.22 1.3 2013 2012 Industry Average 10.20 38.7 2.61 0.67 11.75 30.69 2.43 0.72 2013 2012 24.71% 0.33 17.33% 46.97 128.36 25.34% 0.34 14.23% 42.94 105.60 2013 2012 13.14% 10.11% 8.77% 11.65% 14.53% 11.67% 10.46% 14.02% Earnings per share (EPS) Dividends per share (DPS) Book value per share (BVPS) Cash flow per share (CFPS) Free cash flow per share (FCFPS) LIQUIDITY RATIOS (Section 3.2) Liquidity ratios Current Ratio Quick Ratio ASSET MANAGEMENT RATIOS (Section 3.3) Asset Management ratios Inventory Turnover Days Sales Outstanding Fixed Asset Turnover Total Asset Turnover DEBT MANAGEMENT RATIOS (Section 3.4) Debt Management ratios Debt Ratio Debt-to-Equity Ratio Market Debt Ratio Times Interest Earned EBITDA Coverage Ratio PROFITABILITY RATIOS (Section 3.5) Profitability ratios Profit Margin Basic Earning Power Return on Assets Return on Equity MARKET VALUE RATIOS (Section 3.6) 4.78 25.6 *Industry leader 1.89 *Industry leader 0.63 Industry Average 39.30% *Industry leader 0.65 *Industry leader 24.40 *Industry leader 196.79 *Incorrect for 2013 and N/A Industry Average 19.96% 17.63% *Industry leader 12.56% 19.43% Industry A B C D E F 114 2013 2012 Average 115 Market Value ratios 13.44 14.60 25.77 *NVIDIA doesn't accoun 116 Price-to Earnings Ratio 13.44 14.60 9.66 117 Price-to-Cash Flow Ratio 11.66 13.09 5.13 *Industry Leader 118 Price-to-EBITDA 1.57 2.05 3.59 119 Market-to-Book Ratio 120 121 TREND ANALYSIS, COMMON SIZE ANALYSIS, AND PERCENT CHANGE ANALYSIS (Section 3.7) 122 123 TREND ANALYSIS Trend analysis allows you to see how a firm's results are changing over time. For instance, a firm's ROE may b 124 the benchmark, but if it has been steadily rising over the past four years, that should be seen as a good sign. 125 126 A trend analysis and graph have been constructed on this data regarding Nvidia's ROE over the past 5 years. (N average data for earlier years has been provided.) 127 128 129 NVIDIA 2009 -1.2% 130 2010 -2.7% 131 2011 8.7% 132 2012 15.9% 133 134 2013 11.7% 135 136 Figure 3-1 Rate of Return on Common Equity 137 138 ROE 139 (%) 140 141 142 28.0% 143 144 24.0% 145 146 147 20.0% 148 149 16.0% 150 151 12.0% 152 153 154 8.0% 155 156 4.0% 157 158 0.0% 159 2009 2010 2011 160 161 ROE AMD -213.1% 107.4% 56.7% 37.7% -111.2% Intel 12.93% 10.82% 25.16% 27.15% 22.66% NVIDIA AMD Intel 2012 2013 A B C D E F 162 163 COMMON SIZE ANALYSIS 164 In common size income statements, all items for a year are divided by the sales for that year. 165 166 Figure 3-2 Common Size Income Statements 167 Industry Composite 2013 Net sales 100.0% Operating costs 72.1% Earnings before interest, taxes, depr. & amort. (EBITDA) 27.9% Depreciation and amortization 0.0% Earnings before interest and taxes (EBIT) 27.9% Less interest 0.0% Earnings before taxes (EBT) 27.9% Taxes (15.0%, 12.4%) 7.3% Net income before preferred dividends 20.6% Preferred dividends 0.0% Net income available to common stockholders (profit margi 20.6% Nvidia 2013 168 100.0% 169 84.9% 170 15.1% 171 0.0% 172 15.1% 173 -0.3% 174 15.5% 175 2.3% 176 13.1% 177 0.0% 178 13.1% 179 180 181 182 In common sheets, all items for a year are divided by the total assets for that year. 183 184 Figure 3-3 Common Size Balance Sheets Industry Composite 2013 185 186 187 188 189 190 191 192 193 194 195 196 197 198 199 200 201 202 203 204 205 206 207 208 209 Nvidia 2013 2012 Assets Cash and equivalents Short-term investments Accounts receivable Inventories Total current assets Net plant and equipment Total assets 13.0% 11.5% 7.1% 5.6% 37.2% 62.8% 100.0% 14.1% 46.7% 7.1% 6.5% 74.5% 25.5% 100.0% 13.8% 44.3% 6.1% 6.1% 70.3% 29.7% 100.0% Liabilities and equity Accounts payable Notes payable Accruals Total current liabilities Long-term bonds Total liabilities Preferred stock Total common equity Total liabilities and equity 12.6% 0.4% 2.3% 15.3% 61.1% 76.4% 0.0% 23.6% 100.0% 5.6% 0.0% 9.7% 15.2% 9.5% 24.7% 0.0% 75.3% 100.0% 6.0% 0.0% 10.7% 16.7% 8.6% 25.3% 0.0% 74.7% 100.0% PERCENT CHANGE ANALYSIS 2012 ### 83.8% 16.2% 0.0% 16.2% -0.4% 16.6% 2.1% 14.5% 0.0% 14.5% A B C D E F 210 In percent change analysis, all items are divided by the that item's value in the beginning, or base, year. 211 212 Figure 3-4 Income Statement Percent Change Analysis 213 214 215 216 217 218 219 220 221 222 223 224 225 226 227 228 229 230 231 232 233 234 235 236 237 238 239 240 241 242 243 244 245 246 247 248 249 250 251 252 253 254 Base year = 2012 Net sales Operating costs Earnings before interest, taxes, depr. & amort. (EBITDA) Depreciation and amortization Earnings before interest and taxes (EBIT) Less interest Earnings before taxes (EBT) Taxes (15.0%, 12.4%) Net income before preferred dividends Preferred dividends Net income available to common stockholders Balance Sheet Percent Change Analysis (not in textbook) Percent Change in 2013 Base year = 2012 Assets Cash and equivalents Short-term investments Accounts receivable Inventories Total current assets Net plant and equipment Total assets 18.1% 21.7% 35.1% 23.3% 22.3% -0.6% 15.5% Liabilities and equity Accounts payable Notes payable Accruals Total current liabilities Long-term bonds Total liabilities Preferred stock (2,00,000 shares: none issued) Common stock (616,756,134 shares oustanding 2013 and 612 Retained earnings Total common equity Total liabilities and equity 6.4% 0.0% 4.2% 5.0% 27.5% 12.6% 0.0% 2.9% 18.9% 16.5% 15.5% DU PONT ANALYSIS (Section 3.8) 255 256 Percent Change in 2013 7.1% 8.4% (0.0%) 0.0% (0.0%) (8.6%) (0.2%) 20.9% (3.2%) 0.0% (3.2%) Nvidia 2013 ROE = 11.65% (Profit (Equity margin) (TA turnover) Multiplier) 13.14% 0.67 1.33 A 257 258 259 260 261 262 263 264 265 266 267 268 269 270 271 272 273 274 275 276 277 278 279 280 281 282 283 284 285 286 287 288 289 290 291 292 293 294 295 296 297 298 299 Nvidia Industry Average B 2012 C 14.02% 20.72% D 14.53% 19.96% E 0.72 0.63 F 1.34 1.65 G 1 2 3 4 5 6 7 8 9 10 012 to Jan31, 11 2013 12 13 14 15 16 17 18 19 20 21 22 23 24 * Added to 25cash and quivalents prepaid expense and deferred income taxes 2013 26 69,701 27 103,736 28 29 * In addition 30 to equpment also includes goodwill, intangible assets, and other assets 31 2013 32 641,030 312,332 33 107,481 34 35 36 37 2013 38 3,193,623 39 -1,622,709 40 9981 41 42 * Added to 43Total Common equity additional paid-in capital, treasuary stock, and accumulated other comprehensive income 44 45 46 47 48 49 50 G 51 52 53 54 55 56 57 58 59 60 61 62 63 G 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 *Industry92 leader *Industry93 leader 94 95 96 97 98 *Industry99 leader *Industry leader 100 *Industry leader 101 *Incorrect for 2013 and 2012 as interest combined is income not expense 102 103 104 105 106 107 108 *Industry leader 109 110 111 112 113 G 114 115 *NVIDIA 116 doesn't account for depreciation in their 10-K statements Same P/E P/CF Ratio because there is no depreciation 117 *Industry Leader 118 119 120 121 122 123 nstance, a firm's ROE may be slightly below 124 d be seen as a good sign. 125 ROE over the past 5 years. (Nvidia and indusry 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 145 146 147 148 149 150 151 152 153 154 155 156 157 158 159 160 161 G 162 163 164 165 166 167 168 169 170 171 172 173 174 175 176 177 178 179 180 181 182 183 184 185 186 187 188 189 190 191 192 193 194 195 196 197 198 199 200 201 202 203 204 205 206 207 208 209 G nning, or base, year. 210 211 212 213 214 215 216 217 218 219 220 221 222 223 224 225 226 227 228 229 230 231 232 233 234 235 236 237 238 239 240 241 242 243 244 245 246 247 248 249 250 251 252 253 254 255 256 G 257 258 259 260 261 262 263 264 265 266 267 268 269 270 271 272 273 274 275 276 277 278 279 280 281 282 283 284 285 286 287 288 289 290 291 292 293 294 295 296 297 298 299 Please follow these instructions: My publicly traded company is Amazon. I recommend using Yahoo's financial web site at http://finance.yahoo.com/ . You will write your Final Analysis paper that includes the following: Executive Summary: Introduce your company and its current status. How are they performing? Are they profitable? Are they gaining or losing market share? Have they introduced new products? etc. SWOT Analysis: Please include a comprehensive SWOT analysis about your chosen company. You should include 4-5 items under each heading (Strengths, Weaknesses, Threats, and Opportunities). Recommendations & Justifications: You will use the Recommendations below (or make up some of your own) and justify whether the firm should go along with the recommendation. Concluding thoughts: include what the potential is for your chosen company if they are able to execute your recommendations and the ramifications if they do not. This assignment will consist of completing the Executive Summary and SWOT Analysis and you will complete the Recommendations & Justifications and Concluding thoughts. As a financial consultant, what recommendations would you propose to current company management based on your findings? This added value content should include conclusions and recommendations for the firm going forward (as if you were a consultant for the firm). Adding value means having detailed conclusions and recommendations. Having detailed RECOMMENDATIONS and being able to JUSTIFY them are VERY IMPORTANT! Typical recommendations and conclusions that you will probably use include: Should the firm increase capital expenditures to increase competitiveness? Should the firm increase growth by acquiring other companies for synergies or grow internally? Should the firm risk increasing their leverage (debt) to increase earnings and return on capital or keep the leverage the same (or even decrease it?) Should the firm increase/decrease marketing spending? Should the firm increase/decrease R&D spending? How should they go about controlling costs including labor, health care, and pension liabilities? (GM and Ford need help in this department). There are many more recommendations you can offer. (Note: feel free to add more recommendations or change some of the ones above that fit your chosen company. Note that you want a minimum of at least 6 recommendations.) Feel free to be creative. If you make these recommendations, you want to list WHAT the recommendation is and JUSTIFY WHY the firm should embrace it (and how it benefits the firm). You are the chief financial consultant so you have full rein to make any recommendations. Feel free to use reference and be sure to cite them (APA) format if you do. References are not required though as the paper could be written entirely in your own words. I listed 6 common recommendations above and they are included in your Final Paper template. Feel free to use these and/or make up some of your own. The key is that you want to JUSTIFY any recommendation that you make. For example, if you recommend that a company should increase their capital expenditures, then justify why. Common justifications could that they need to increase capital expenditure to support their R&D spending, to expand domestic operations, or to expand internationally. You want to support your recommendations with thorough justifications. If you use references, then be sure to cite them using APA formatting. The format of your paper could be to list each Recommendation and Justify each one like below: Recommendation #1: Should the firm increase capital expenditures to increase competitiveness? Justification: Yes, because to remain competitive, they need to invest in technologies to keep up with their main competitors. They also plan to expand internationally, so investing into these new markets and the learning curve involve will involve spending at least? billion dollars. etc, etc, etc. Recommendation #2: Should the firm increase growth by acquiring other companies for synergies or grow internally? Justification: I feel that my company should grow internally. Due to my industry, acquiring a competitor involves integrating a different culture into our firm. Also, the companies are selling for such a high premium currently that it odes not justify buying our competitors. Finally, since our stock price is down currently and interest rates are high, it would be very expensive to borrow to finance the purchase. etc, etc, etc. So your Executive Summary for your SWOT Analysis you should have 4-5 items listed under each area (Strengths, Weaknesses, Threats, and Opportunities). For your \"Recommendations & Justifications\" need to be a minimum of 1,000 words and concluding thoughts should be 250 words minimum. Let's learn a lot about the chosen company (Amazon)! A 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 B C D E F Tool Kit for Analysis of Financial Statements Financial statements are analyzed by calculating certain key ratios and then comparing them with the ratios of other firms and by examining the trends in ratios over time. We can also combine ratios to make the analysis more revealing, those indicated below are exceptionally useful for this type of analysis. RATIO ANALYSIS (Section 3.1) *NVIDIA Fiscal Years starts and ends on Jan 31, such that FY13 represents Jan 31,2012 to Jan31, 2013 Input Data: 2013 2012 Year-end common stock price $12.26 $13.86 Year-end shares outstanding (in thousands) 616,756 612,191 Tax rate 15% 12% After-tax cost of capital Lease payments (in thousands) $18,998 $21,439 Required sinking fund payments $0 $0 Balance Sheets (in thousands of dollars) Assets Cash and equivalents Short-term investments Accounts receivable Inventories Total current assets Net plant and equipment Total assets 2013 $906,223 $2,995,097 $454,252 $419,686 $4,775,258 $1,636,987 $6,412,245 2012 $767,218 * Added to cash and qu $2,461,700 $336,143 $340,297 $3,905,358 $1,647,570 * In addition to equpme $5,552,928 Liabilities and equity Accounts payable Notes payable Accruals Total current liabilities Long-term bonds Total liabilities Preferred stock (2,00,000 shares: none issued) Common stock (616,756,134 shares oustanding 2013 and 612 Retained earnings Total common equity Total liabilities and equity $356,428 $0 $619,795 $976,223 $608,319 $1,584,542 $0 $720 $3,246,088 $4,827,703 $6,412,245 $335,072 $0 $594,886 $929,958 $477,246 $1,407,204 $0 $700 $2,730,418 $4,145,724 * Added to Total Comm $5,552,928 Income Statements (in thousands of dollars) Net sales Operating costs 2013 2012 $4,280,159.0 $3,997,930.0 $3,631,920.0 $3,349,631.0 51 52 53 54 55 56 57 58 59 60 61 62 63 A B C Earnings before interest, taxes, depr. & amort. (EBITDA) Depreciation Amortization Depreciation and amortization Earnings before interest and taxes (EBIT) Less interest Earnings before taxes (EBT) Taxes (15.0%, 12.4%) Net income before preferred dividends Preferred dividends Net income available to common stockholders Common dividends Addition to retained earnings D $648,239.0 $0.0 $0.0 $0.0 $648,239.0 -$13,800.0 $662,039.0 $99,503.0 $562,536.0 $0.0 $562,536.0 $0.0 $562,536.0 E $648,299.0 $0.0 $0.0 $0.0 $648,299.0 -$15,097.0 $663,396.0 $82,306.0 $581,090.0 $0.0 $581,090.0 $0.0 $581,090.0 F A 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 B C D E F Calculated Data: Operating Performance and Cash Flows 2013 2012 $803,938.0 $513,700.0 $2,440,925.0 $2,161,270.0 $551,003.2 $567,909.9 $562,536.0 $581,090.0 $551,003.2 $567,909.9 $271,348.2 N/A Net operating working capital (NOWC) Total operating capital Net Operating Profit After Taxes (NOPAT) Net Cash Flow (Net income + Depreciation) Operating Cash Flow (OCF) Free Cash Flow (FCF) Calculated Data: Per-share Information 2013 $0.91 $0.00 $7.83 $0.91 $0.44 2012 $0.95 $0.00 $6.77 $0.95 N/A 2013 2012 Industry Average 4.89 4.46 4.20 3.83 2.22 1.3 2013 2012 Industry Average 10.20 38.7 2.61 0.67 11.75 30.69 2.43 0.72 2013 2012 24.71% 0.33 17.33% 46.97 128.36 25.34% 0.34 14.23% 42.94 105.60 2013 2012 13.14% 10.11% 8.77% 11.65% 14.53% 11.67% 10.46% 14.02% Earnings per share (EPS) Dividends per share (DPS) Book value per share (BVPS) Cash flow per share (CFPS) Free cash flow per share (FCFPS) LIQUIDITY RATIOS (Section 3.2) Liquidity ratios Current Ratio Quick Ratio ASSET MANAGEMENT RATIOS (Section 3.3) Asset Management ratios Inventory Turnover Days Sales Outstanding Fixed Asset Turnover Total Asset Turnover DEBT MANAGEMENT RATIOS (Section 3.4) Debt Management ratios Debt Ratio Debt-to-Equity Ratio Market Debt Ratio Times Interest Earned EBITDA Coverage Ratio PROFITABILITY RATIOS (Section 3.5) Profitability ratios Profit Margin Basic Earning Power Return on Assets Return on Equity MARKET VALUE RATIOS (Section 3.6) 4.78 25.6 *Industry leader 1.89 *Industry leader 0.63 Industry Average 39.30% *Industry leader 0.65 *Industry leader 24.40 *Industry leader 196.79 *Incorrect for 2013 and N/A Industry Average 19.96% 17.63% *Industry leader 12.56% 19.43% Industry A B C D E F 114 2013 2012 Average 115 Market Value ratios 13.44 14.60 25.77 *NVIDIA doesn't accoun 116 Price-to Earnings Ratio 13.44 14.60 9.66 117 Price-to-Cash Flow Ratio 11.66 13.09 5.13 *Industry Leader 118 Price-to-EBITDA 1.57 2.05 3.59 119 Market-to-Book Ratio 120 121 TREND ANALYSIS, COMMON SIZE ANALYSIS, AND PERCENT CHANGE ANALYSIS (Section 3.7) 122 123 TREND ANALYSIS Trend analysis allows you to see how a firm's results are changing over time. For instance, a firm's ROE may b 124 the benchmark, but if it has been steadily rising over the past four years, that should be seen as a good sign. 125 126 A trend analysis and graph have been constructed on this data regarding Nvidia's ROE over the past 5 years. (N average data for earlier years has been provided.) 127 128 129 NVIDIA 2009 -1.2% 130 2010 -2.7% 131 2011 8.7% 132 2012 15.9% 133 134 2013 11.7% 135 136 Figure 3-1 Rate of Return on Common Equity 137 138 ROE 139 (%) 140 141 142 28.0% 143 144 24.0% 145 146 147 20.0% 148 149 16.0% 150 151 12.0% 152 153 154 8.0% 155 156 4.0% 157 158 0.0% 159 2009 2010 2011 160 161 ROE AMD -213.1% 107.4% 56.7% 37.7% -111.2% Intel 12.93% 10.82% 25.16% 27.15% 22.66% NVIDIA AMD Intel 2012 2013 A B C D E F 162 163 COMMON SIZE ANALYSIS 164 In common size income statements, all items for a year are divided by the sales for that year. 165 166 Figure 3-2 Common Size Income Statements 167 Industry Composite 2013 Net sales 100.0% Operating costs 72.1% Earnings before interest, taxes, depr. & amort. (EBITDA) 27.9% Depreciation and amortization 0.0% Earnings before interest and taxes (EBIT) 27.9% Less interest 0.0% Earnings before taxes (EBT) 27.9% Taxes (15.0%, 12.4%) 7.3% Net income before preferred dividends 20.6% Preferred dividends 0.0% Net income available to common stockholders (profit margi 20.6% Nvidia 2013 168 100.0% 169 84.9% 170 15.1% 171 0.0% 172 15.1% 173 -0.3% 174 15.5% 175 2.3% 176 13.1% 177 0.0% 178 13.1% 179 180 181 182 In common sheets, all items for a year are divided by the total assets for that year. 183 184 Figure 3-3 Common Size Balance Sheets Industry Composite 2013 185 186 187 188 189 190 191 192 193 194 195 196 197 198 199 200 201 202 203 204 205 206 207 208 209 Nvidia 2013 2012 Assets Cash and equivalents Short-term investments Accounts receivable Inventories Total current assets Net plant and equipment Total assets 13.0% 11.5% 7.1% 5.6% 37.2% 62.8% 100.0% 14.1% 46.7% 7.1% 6.5% 74.5% 25.5% 100.0% 13.8% 44.3% 6.1% 6.1% 70.3% 29.7% 100.0% Liabilities and equity Accounts payable Notes payable Accruals Total current liabilities Long-term bonds Total liabilities Preferred stock Total common equity Total liabilities and equity 12.6% 0.4% 2.3% 15.3% 61.1% 76.4% 0.0% 23.6% 100.0% 5.6% 0.0% 9.7% 15.2% 9.5% 24.7% 0.0% 75.3% 100.0% 6.0% 0.0% 10.7% 16.7% 8.6% 25.3% 0.0% 74.7% 100.0% PERCENT CHANGE ANALYSIS 2012 ### 83.8% 16.2% 0.0% 16.2% -0.4% 16.6% 2.1% 14.5% 0.0% 14.5% A B C D E F 210 In percent change analysis, all items are divided by the that item's value in the beginning, or base, year. 211 212 Figure 3-4 Income Statement Percent Change Analysis 213 214 215 216 217 218 219 220 221 222 223 224 225 226 227 228 229 230 231 232 233 234 235 236 237 238 239 240 241 242 243 244 245 246 247 248 249 250 251 252 253 254 Base year = 2012 Net sales Operating costs Earnings before interest, taxes, depr. & amort. (EBITDA) Depreciation and amortization Earnings before interest and taxes (EBIT) Less interest Earnings before taxes (EBT) Taxes (15.0%, 12.4%) Net income before preferred dividends Preferred dividends Net income available to common stockholders Balance Sheet Percent Change Analysis (not in textbook) Percent Change in 2013 Base year = 2012 Assets Cash and equivalents Short-term investments Accounts receivable Inventories Total current assets Net plant and equipment Total assets 18.1% 21.7% 35.1% 23.3% 22.3% -0.6% 15.5% Liabilities and equity Accounts payable Notes payable Accruals Total current liabilities Long-term bonds Total liabilities Preferred stock (2,00,000 shares: none issued) Common stock (616,756,134 shares oustanding 2013 and 612 Retained earnings Total common equity Total liabilities and equity 6.4% 0.0% 4.2% 5.0% 27.5% 12.6% 0.0% 2.9% 18.9% 16.5% 15.5% DU PONT ANALYSIS (Section 3.8) 255 256 Percent Change in 2013 7.1% 8.4% (0.0%) 0.0% (0.0%) (8.6%) (0.2%) 20.9% (3.2%) 0.0% (3.2%) Nvidia 2013 ROE = 11.65% (Profit (Equity margin) (TA turnover) Multiplier) 13.14% 0.67 1.33 A 257 258 259 260 261 262 263 264 265 266 267 268 269 270 271 272 273 274 275 276 277 278 279 280 281 282 283 284 285 286 287 288 289 290 291 292 293 294 295 296 297 298 299 Nvidia Industry Average B 2012 C 14.02% 20.72% D 14.53% 19.96% E 0.72 0.63 F 1.34 1.65 G 1 2 3 4 5 6 7 8 9 10 012 to Jan31, 11 2013 12 13 14 15 16 17 18 19 20 21 22 23 24 * Added to 25cash and quivalents prepaid expense and deferred income taxes 2013 26 69,701 27 103,736 28 29 * In addition 30 to equpment also includes goodwill, intangible assets, and other assets 31 2013 32 641,030 312,332 33 107,481 34 35 36 37 2013 38 3,193,623 39 -1,622,709 40 9981 41 42 * Added to 43Total Common equity additional paid-in capital, treasuary stock, and accumulated other comprehensive income 44 45 46 47 48 49 50 G 51 52 53 54 55 56 57 58 59 60 61 62 63 G 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 *Industry92 leader *Industry93 leader 94 95 96 97 98 *Industry99 leader *Industry leader 100 *Industry leader 101 *Incorrect for 2013 and 2012 as interest combined is income not expense 102 103 104 105 106 107 108 *Industry leader 109 110 111 112 113 G 114 115 *NVIDIA 116 doesn't account for depreciation in their 10-K statements Same P/E P/CF Ratio because there is no depreciation 117 *Industry Leader 118 119 120 121 122 123 nstance, a firm's ROE may be slightly below 124 d be seen as a good sign. 125 ROE over the past 5 years. (Nvidia and indusry 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 145 146 147 148 149 150 151 152 153 154 155 156 157 158 159 160 161 G 162 163 164 165 166 167 168 169 170 171 172 173 174 175 176 177 178 179 180 181 182 183 184 185 186 187 188 189 190 191 192 193 194 195 196 197 198 199 200 201 202 203 204 205 206 207 208 209 G nning, or base, year. 210 211 212 213 214 215 216 217 218 219 220 221 222 223 224 225 226 227 228 229 230 231 232 233 234 235 236 237 238 239 240 241 242 243 244 245 246 247 248 249 250 251 252 253 254 255 256 G 257 258 259 260 261 262 263 264 265 266 267 268 269 270 271 272 273 274 275 276 277 278 279 280 281 282 283 284 285 286 287 288 289 290 291 292 293 294 295 296 297 298 299 FINANCIAL ANALYSIS- INSTRUCTIONS Hi You will write a final Analysis paper about Amazon that includes the following: Executive Summary: Introduce your company and its current status.. How are they performing? Are they profitable? Are they gaining or losing market share? Have they introduced new products?, etc. SWOT Analysis: Please include a comprehensive SWOT analysis about your chosen company. You should include 4-5 items under each heading (Strengths, Weaknesses, Threats, and Opportunities). Recommendations & Justifications: You will use the Recommendations below (or make up some of your own) and justify whether the firm should go along with the recommendation. Concluding thoughts: include what the potential is for your chosen company if they are able to execute your recommendations and the ramifications if they do not. As a financial consultant, what recommendations would you propose to current company management based on your findings? This added value content should include conclusions and recommendations for the firm going forward (as if you were a consultant for the firm). Adding value means having detailed conclusions and recommendations. Having detailed RECOMMENDATIONS and being able to JUSTIFY them are VERY IMPORTANT! Typical recommendations and conclusions that you will probably use include: Should the firm increase capital expenditures to increase competitiveness? Should the firm increase growth by acquiring other companies for synergies or grow internally? Should the firm risk increasing their leverage (debt) to increase earnings and return on capital or keep the leverage the same (or even decrease it?) Should the firm increase/decrease marketing spending? Should the firm increase/decrease R&D spending? How should they go about controlling costs including labor, health care, and pension liabilities? (GM and Ford need help in this department). There are many more recommendations you can offer. (Note: feel free to add more recommendations or change some of the ones above that fit your chosen company. Note that you want a minimum of at least 6 recommendations.) Feel free to be creative. If you make these recommendations, you want to list WHAT the recommendation is and JUSTIFY WHY the firm should embrace it (and how it benefits the firm). You are the chief financial consultant so you have full rein to make any recommendations. Feel free to use reference and be sure to cite them (APA) format if you do. References are not required though as the paper could be written entirely in your own words. I listed 6 common recommendations above and they are included in your Final Paper template. Feel free to use these and/or make up some of your own. The key is that you want to JUSTIFY any recommendation that you make. For example, if you recommend that a company should increase their capital expenditures, then justify why. Common justifications could that they need to increase capital expenditure to support their R&D spending, to expand domestic operations, or to expand internationally. You want to support your recommendations with thorough justifications. If you use references, then be sure to cite them using APA formatting. The format of your paper could be to list each Recommendation and Justify each one like below: Recommendation #1: Should the firm increase capital expenditures to increase competitiveness? Justification: Yes because to remain competitive, they need to invest in technologies to keep up with their main competitors. They also plan to expand internationally, so investing into these new markets and the learning curve involve will involve spending at least ? billion dollars. etc, etc, etc. Recommendation #2: Should the firm increase growth by acquiring other companies for synergies or grow internally? Justification: I feel that my company should grow internally. Due to my industry, acquiring a competitor involves integrating a different culture into our firm. Also, the companies are selling for such a high premium currently that it odes not justify buying our competitors. Finally, since our stock price is down currently and interest rates are high, it would be very expensive to borrow to finance the purchase. etc, etc, etc. For the Excel Tool Kit attached. For Amason.com. For this assignment, you will also complete the Financial Overview component of Amazon. To complete this assignment, use the Financial Analysis Toolkit Excel file, provided in the attachment, to complete a financial analysis of Amazon over the last two most recent years available in annual reports. Replace the numbers provided in the Excel file with the appropriate numbers for Amazon. Then, write a 2-3-page financial analysis of your company, addressing the following elements: I recommend using Yahoo's financial web site at http://finance.yahoo.com/ . Identify your company, its industry, and analyze the important segments (percentage of sales or subsidiaries) of your company compared to its industry and its overall business. Perform a complete financial analysis of your chosen company's financial statements horizontal, vertical (Percentage of Sales and Common-Size), and changes in ratiosfor the last two years. Compare all ratios to industry averages. Evaluate the company's ratios against the industry averages. Explain the significance of the company's ratios when compared to industry averages. Analyze the company's cash flows. Assess the overall financial health of your company based on this financial analysis. A great way to integrate the completed calculations from your Excel sheet into your written analysis is to paste pieces of the worksheet directly into your Word document. You are also encouraged to create graphs or charts from the data that may illustrate your analyses as well. Please notify me when you're done. Thank you so much FINANCIAL ANALYSIS- INSTRUCTIONS Hi You will write a final Analysis paper about Amazon that includes the following: Executive Summary: Introduce your company and its current status.. How are they performing? Are they profitable? Are they gaining or losing market share? Have they introduced new products?, etc. SWOT Analysis: Please include a comprehensive SWOT analysis about your chosen company. You should include 4-5 items under each heading (Strengths, Weaknesses, Threats, and Opportunities). Recommendations & Justifications: You will use the Recommendations below (or make up some of your own) and justify whether the firm should go along with the recommendation. Concluding thoughts: include what the potential is for your chosen company if they are able to execute your recommendations and the ramifications if they do not. As a financial consultant, what recommendations would you propose to current company management based on your findings? This added value content should include conclusions and recommendations for the firm going forward (as if you were a consultant for the firm). Adding value means having detailed conclusions and recommendations. Having detailed RECOMMENDATIONS and being able to JUSTIFY them are VERY IMPORTANT! Typical recommendations and conclusions that you will probably use include: Should the firm increase capital expenditures to increase competitiveness? Should the firm increase growth by acquiring other companies for synergies or grow internally? Should the firm risk increasing their leverage (debt) to increase earnings and return on capital or keep the leverage the same (or even decrease it?) Should the firm increase/decrease marketing spending? Should the firm increase/decrease R&D spending? How should they go about controlling costs including labor, health care, and pension liabilities? (GM and Ford need help in this department). There are many more recommendations you can offer. (Note: feel free to add more recommendations or change some of the ones above that fit your chosen company. Note that you want a minimum of at least 6 recommendations.) Feel free to be creative. If you make these recommendations, you want to list WHAT the recommendation is and JUSTIFY WHY the firm should embrace it (and how it benefits the firm). You are the chief financial consultant so you have full rein to make any recommendations. Feel free to use reference and be sure to cite them (APA) format if you do. References are not required though as the paper could be written entirely in your own words. I listed 6 common recommendations above and they are included in your Final Paper template. Feel free to use these and/or make up some of your own. The key is that you want to JUSTIFY any recommendation that you make. For example, if you recommend that a company should increase their capital expenditures, then justify why. Common justifications could that they need to increase capital expenditure to support their R&D spending, to expand domestic operations, or to expand internationally. You want to support your recommendations with thorough justifications. If you use references, then be sure to cite them using APA formatting. The format of your paper could be to list each Recommendation and Justify each one like below: Recommendation #1: Should the firm increase capital expenditures to increase competitiveness? Justification: Yes because to remain competitive, they need to invest in technologies to keep up with their main competitors. They also plan to expand internationally, so investing into these new markets and the learning curve involve will involve spending at least ? billion dollars. etc, etc, etc. Recommendation #2: Should the firm increase growth by acquiring other companies for synergies or grow internally? Justification: I feel that my company should grow internally. Due to my industry, acquiring a competitor involves integrating a different culture into our firm. Also, the companies are selling for such a high premium currently that it odes not justify buying our competitors. Finally, since our stock price is down currently and interest rates are high, it would be very expensive to borrow to finance the purchase. etc, etc, etc. For the Excel Tool Kit attached. For Amason.com. For this assignment, you will also complete the Financial Overview component of Amazon. To complete this assignment, use the Financial Analysis Toolkit Excel file, provided in the attachment, to complete a financial analysis of Amazon over the last two most recent years available in annual reports. Replace the numbers provided in the Excel file with the appropriate numbers for Amazon. Then, write a 2-3-page financial analysis of your company, addressing the following elements: I recommend using Yahoo's financial web site at http://finance.yahoo.com/ . Identify your company, its industry, and analyze the important segments (percentage of sales or subsidiaries) of your company compared to its industry and its overall business. Perform a complete financial analysis of your chosen company's financial statements horizontal, vertical (Percentage of Sales and Common-Size), and changes in ratiosfor the last two years. Compare all ratios to industry averages. Evaluate the company's ratios against the industry averages. Explain the significance of the company's ratios when compared to industry averages. Analyze the company's cash flows. Assess the overall financial health of your company based on this financial analysis. A great way to integrate the completed calculations from your Excel sheet into your written analysis is to paste pieces of the worksheet directly into your Word document. You are also encouraged to create graphs or charts from the data that may illustrate your analyses as well. Please notify me when you're done. Thank you so much