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Write a report as if you are a consultant that has been hired by the company to help them with their future financial success. The
Write a report as if you are a consultant that has been hired by the company to help them with their future financial success. The company you were hired is Air Canada
Based on your research and analysis, you will determine what the company's financial strengths and weaknesses are, and will provide them with future recommendations on measures they can take to ensure their financial success Find your company's latest annual report Format: This report should be written with a professional tone, making use of proper business language. It should be thoroughly edited before submitting. - Information should be neatly organized using a table of contents, subheadings and numbered pages for easy referencing of information. - include in-text citations using MLA format (at any point in your report that you make reference to researched information). - Include a works cited page using MLA format. Part 1 Brief Company Background (250 words) - Provide any background information on your company that you deem necessary. Try to keep this portion concise and relevant. Strengths and Opportunities ( 250 words) - A discussion of the company's current strengths and future opportunities for success. Weaknesses and Threats ( 250 words) - A discussion of the company's current weaknesses, as well as current and future challenges and risks the company might be facing. Analyze the company's performance in the following for the last available fiscal year. All ratios you can use are listed below (working capital, current ratio, inventory turnover, days sales in inventory, receivables turnover, collection period, gross profit margin, profit margin, asset turnover, return on assets, and debt to total assets) Liquidity (the company's ability to pay off short-term debts) - Choose the 2 liquidity ratios below that you think are most relevant to your company and perform the steps listed below (feel free to research additional ratios not found in the textbook). (working capital, current ratio, inventory turnover, days sales in inventory, receivables turnover, collection period) Profitability (the company's ability to generate profits from its resources) - Choose the 2 profitability ratios below that you think are most relevant to your company and perform the steps listed below. - (gross profit margin, profit margin, asset turnover, return on assets) Solvency (the company's ability to pay off its long-term debts) Choose the 1 solvency ratio that you think is most relevant to your company and perform the steps listed below. (debt to total assets) For each ratio that you have chosen: 1) Type out the formula for calculating the ratio, and calculate the company's ratio for the last fiscal year (you are being marked on your calculation, so do not simply show the final answer) 2) Provide a 200-250 word commentary on each ratio. The commentary should describe a. The meaning of the results b. Comparison to your company's past results c. Comparison to the industry average and/or to similar companies d. Future actions the company should take based on the results of this ratio. Notes regarding the ratios: The commentary must be in-depth, and NOT simply a rewording of the definition or description of the ratio. Your explanation regarding the ratio must describe what that ratio tells us about your company, using your own words. Conclusion ( 500 words) - Determine whether or not this company is performing well from an accounting perspective. This is a critical part of the report, as it wraps up all of your research. allowing you to make a final decision about the performance of your company. - Be sure to focus on all aspects of your company's performance - You must also discuss other factors beyond the ratios that you feel are important factors in your decision. - Be sure to provide clear and specific recommendations to the company based on your conclusions. Keep in mind that the purpose of performing a financial analysis is to determine a company's financial strengths and weaknesses and find ways to improve. ADDITIONAL ASSIGNMENT NOTES Appendices 1) You must include a copy of the portions of your company's financial statements used to calculate the ratios (e.g. income statement and balance sheet). 2) You must include a works cited page. You may wish to use the citation builder within Google Docs, or can use another citation builder such as EasyBib. A Note on Citations This assignment requires additional research beyond the annual report. All research must be cited using both in-text citations and a works cited page using MLA format. - In-text citationsare short citations found within the body of the text, and are included whenever information from one of your sources is included in your report. A works cited is typically the last page of a report, and includes the full citations of all sources used to research your report. The only exception: The numbers used in your ratio calculations do not require in-text citations (it is assumed these are from the financial statements in your annual report). Use the MLA format for citations (Make sure to have citations or just the website of the information founded on a page)
The requirements for the report is on the pictures
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