PLUG POWER

1. The term paper combines the quantitative results from the above calculations to develop a thorough and complete analysis.

2. It discusses and evaluates the performance of a publicly traded company. You will analyze the financial data and relate them to the various topics covered in this course.

3. Your term paper should include the following elements:

1. Abstract: give your audience a quick view to know what the paper is about

2. Introduction: Introduce the company and explain why you chose this company (Something interesting about the company).

3. Answer the following questions:

c1. If you were management consultant working for a CPA firm, which ratios would you use to determine the liquidity, solvency, and profitability of the firm? Select one ratio for liquidity and the other ratio from either solvency or profitability. Be specific. Provide two recommendations for efficiency and improvement.

c2. If you were a loan officer who works for a bank, would you recommend granting a loan to the company? What ratio would you use to arrive at your conclusion? Be specific. Provide two recommendations for efficiency and improvement.

Project Instructions

Step 1: Collect Information

Choose a public traded company that you have access to their financial reports. Please select a company whose financial information is stored in www.sec.gov.

Step 2: Compute Financial Ratios

Select ratios to analyze the companys liquidity, solvency, profitability, and leverage.

Liquidity ratios

Measures a firms ability to meet its current obligations

Solvency ratios

Measures a firms ability to meet its long-term obligations

Leverage ratios

Measures the degree of protection for long-term creditors

Profitability ratios

Measures the earning ability of a firm

c3. If you were a financial advisor who works for an investment firm, would you recommend your clients and prospective clients to invest in this company? What financial ratios would you use to arrive at this conclusion? Be specific. Provide two recommendations for efficiency and improvement.

4. Conclusions

5. References