PART A- Assignment 1 excel spreadsheet
1. The purpose of this template is to gather data that will be analyzed and discussed in the Assignment Part B submission. Insert the name of the company in the “Company 1 AMAZON or Company 2 WALMART
2″ headings so we know which company is being reviewed.
2. The template uses the terminology in the CFO Guidebook chapter on Risks.
3. Risks of the company are disclosed in the annual 10-K report section Item 1A Risk Factors. Use the risks in the 10-K as your basis for your template. You can also get additional risks from the Morningstar Analyst Report, or from news articles about the company. Try to narrow down the laundry list of risks to a few unique (only applies to one company but not the other) and major risks.
4. There is no “magic” number of risks to be included in your template. Try to aim for 3-5 risks per company to compare and analyze. Pick the risks.
5. You can delete extra rows or add rows. You can also change the font size and the column widths. Keep the headings standard. While not a requirement, if you believe an additional column is required to better describe/classify your risks, then add it.
6. While not a requirement, you can copy/paste the Excel completed table as a picture to your Word document if it makes it easier to reference in your analysis and recommendations.
PART B
- Summarize your Analysis and Recommendations by addressing the following questions:
Where is each company in its corporate lifecycle (startup, growth, maturity, or decline)? Explain.
Based on your review of the analysts’ reports and the 10-K reports, which company appears to have more risk? Why?
Which categories of risk pose the greatest threat to each organization? Why?
Which company has the stronger economic moat? Explain.
For the company that has the weaker economic moat, what two risk factors should they prioritize to improve their risk mitigation and strengthen their competitive advantage? Make specific reference to the applicable risk management tools discussed on pages 30- 63 of The CFO Guidebook.
Assignment 1
SAMPLE COMPANY | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Risk Ranking (pg. 26) |
Risk Name (10-K Annual Report, Other) |
Description of the risk | Risk Profile (Pg. 28) |
Mitigation Plan (Pg 30) |
|||||||||||||||||||||||||||||||||||||||||||||||||
1 – highest severity/frequency (on the list on my table) | License Renewals | Forecasts of revenue are based on customers renewing their software license contracts. If price increases, customer service drops, or competition increases, then renewals and revenue will decrease. | Financial Risk. Could also be partly operational, strategic, industry, or brand | Take internal actions to mitigate the risk. This risk cannot be accepted or transferred. Internal actions include enuring that our pricing reflects market competition and customer expectations, that our products are meeting requirements, that our customer service is providing the highest level support, that we identify clients that are at risk of not renewing and actions are taken. | |||||||||||||||||||||||||||||||||||||||||||||||||
Amazon | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Walmart | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Risk Profile (Pg. 28) |
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Instructions
1. The purpose of this template is to gather data that will be analyzed and discussed in the Assignment Part B submission. Insert the name of the company in the “Company 1 or Company 2” headings so we know which company is being reviewed.
2. The template uses the terminology in the CFO Guidebook chapter on Risks.
3. Risks of the company are disclosed in the annual 10-K report section Item 1A Risk Factors. Use the risks in the 10-K as your basis for your template. You can also get additional risks from the
, or from news articles about the company. Try to narrow down the laundry list of risks to a few unique (only applies to one company but not the other) and major risks.
4. There is no “magic” number of risks to be included in your template. Try to aim for 3-5 risks per company to compare and analyze. Pick the risks.
5. You can delete extra rows, or add rows. You can also change the font size and the column widths. Keep the headings standard. While not a requirement, if you believe an additional column is required to better describe/classify your risks, then add it.
6. While not a requirement, you can copy/paste the Excel completed table as a picture to your Word document if it makes it easier to reference in your analysis and recommendations.
Assignment 2
COMPANY 1 NAME HERE | COMPANY 2 NAME HERE | ||||||
2017 | 2018 | ||||||
Valuation | |||||||
Price/Sales | |||||||
Price/Earnings | |||||||
Price/Book | |||||||
Earnings Yield % | |||||||
Growth | |||||||
Revenue % | |||||||
Operating income % | |||||||
Net Income % | |||||||
Financial Health | |||||||
Quick Ratio | |||||||
interest Coverage | |||||||
Debt/Equity | |||||||
Profitability | |||||||
ROA | |||||||
ROE | |||||||
ROIC | |||||||
Net margin % |
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Instructions
1. The purpose of this template is to gather data that will be analyzed and discussed in the Assignment Part B submission. Insert the name of the company in the “Company 1 or Company 2” headings so we know which company is being reviewed.
2. The template uses the ratio terminology in the CFO Guidebook. We have also provided you with a Course Ratio Checklist you can use to understand what the ratios mean and how they are calculated. Please use Current Year ratios as the base ratios. For example, the most recent full year.
3. Ratios for the companies are included in the Morningstar analyst report provided in the course. Some ratios are also provided in the 10-K Annual Report, from online sources, or can be calculated – but for this exercise you can use the Morningstar analyst report as you primary source.
4. Do not delete ratios from the table. There is no requirement to add extra ratios, unless your believe there are othe ratios that best helps you describe the performance impacting the valuation of the companies. More is not necessarily better – we are looking for quality over quantity.
5. The ratios in this execrcise are based on historical performance. When comparing the ratios of the two companies side-by-side, you will notice differences. One company may seem to have performed better – we are looking for your insight for that difference in performance.
6. You can also change the font size and the column widths. Keep the headings standard. While not a requirement, if you believe an additional column is required to better describe/classify your risks, then add it.
7. While not a requirement, you can copy/paste the Excel completed table as a picture in your Word document if it makes it easier to reference in your analysis and recommendations.
Assignment 3
COMPANY 1 NAME HERE | COMPANY 2 NAME HERE | |
Morningstar Analyst Report Data | Forecast (optional) | |
Income Statement | ||
Revenue (Bil) | ||
Operating Income (Bil) | ||
Net Income (Bil) | ||
Operating Performance | ||
Gross Margin % | ||
Operating Margin % | ||
Net Margin % | ||
Days Sales Outstanding | ||
Days Inventory | ||
Days Payables | ||
Receivables Turnover | ||
Inventory Turnover | ||
Fixed Asset Turnover | ||
Total Asset Turnover |
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Instructions
1. The purpose of this template is to gather data that will be analyzed and discussed in the Assignment Part B submission. Insert the name of the company in the “Company 1 or Company 2” headings so we know which company is being reviewed.
2. You will be reviewing the financial data from various years looking for trends.
3. The template uses the ratio terminology in the CFO Guidebook. We have also provided you with a Course Ratio Checklist you can use to understand what the ratios mean and how they are calculated.
4. Ratios for the companies are included in the Morningstar analyst report provided in the course. Some ratios are also provided in the 10-K Annual Report, from online sources, or can be calculated – but for this exercise you can use the Morningstar analyst report as you primary source.
5. Do not delete ratios from the table. There is no requirement to add extra ratios, unless your believe there are othe ratios that best helps you describe the performance impacting the forecast of the companies. More is not necessarily better – we are looking for quality over quantity.
6. When comparing the forecasts of the two companies side-by-side, you will notice differences. One company may seem to have better trends – we are looking for your insight of the difference in performance.
7. You can also change the font size and the column width. Keep the headings standard.
8. While not a requirement, you can copy/paste the Excel completed table as a picture in your Word document if it makes it easier to reference in your analysis and recommendations.
531– Assignment 1 (1202) Page 1 of 3
JWI 531: Financial Management II
Assignment 1
© Strayer University. All Rights Reserved. This document contains Strayer University confidential and proprietary information and may
not be copied, further distributed, or otherwise disclosed, in whole or in part, without the expressed written permission of Strayer
University. This document is subject to change based on the needs of the class.
Assignment 1:
Enterprise Risk Management and Moat Strength
Due Week 3, Sunday (18% of final grade)
Congratulations! You have just gotten the opportunity of a lifetime to work as a senior financial advisor for
Warren Buffett. You will be responsible for conducting financial analyses on companies Mr. Buffett is
reviewing, and providing recommendations for action to the CFOs of those companies. The names of
these companies will be provided by your professor in the first week of the course.
Instructions
In this assignment, you will evaluate several risk scenarios and make recommendations on how to position
the company for success by putting in place “reasonable” protections against downsides. To prepare for
the assignment: (1) download and review the latest annual reports for both companies from the Investor
Relations page of each company’s website; (2) read the Shareholder Letter and the Risks section
carefully, and (3) read the Morningstar Analyst Reports with particular emphasis on the Moat and Risk
sections.
A. Complete the Assignment 1 Worksheet to create risk profiles for both companies. The guidance
for this is found on pages 24-29 of The CFO Guidebook.
B. Summarize your Analysis and Recommendations by addressing the following questions:
i. Where is each company in its corporate lifecycle (startup, growth, maturity, or decline)?
Explain.
ii. Based on your review of the analysts’ reports and the 10-K reports, which company
appears to have more risk? Why?
iii. Which categories of risk pose the greatest threat to each organization? Why?
iv. Which company has the stronger economic moat? Explain.
v. For the company that has the weaker economic moat, what two risk factors should they
prioritize to improve their risk mitigation and strengthen their competitive advantage?
Make specific reference to the applicable risk management tools discussed on pages 30-
63 of The CFO Guidebook.
531 – Assignment 1 (1202) Page 2 of 3
JWI 531: Financial Management II
Assignment 1
© Strayer University. All Rights Reserved. This document contains Strayer University confidential and proprietary information and may
not be copied, further distributed, or otherwise disclosed, in whole or in part, without the expressed written permission of Strayer
University. This document is subject to change based on the needs of the class.
Submission Requirements
A. Complete and submit the Assignment 1 Worksheet component of the Workbook, along with your
written work for Part B, through the assignment link in Blackboard.
B. Format your written responses for Analysis and Recommendation as follows:
Typed, double-spaced, professional font (size 10-12), including headings and subheadings (to
identify main topics and subtopics), with one-inch margins on all sides.
References must be included and provide appropriate information that enables the reader to
locate the original source.
o Application and analysis of course materials and resources is expected.
o At least one additional source beyond the course materials must be cited to support
your analysis and recommendations.
Include a cover page containing the title of the assignment, your name, the professor’s name,
the course title, and the date.
The maximum length is 4 pages, excluding your cover page, completed worksheets, and
reference list.
531 – Assignment 1 (1202) Page 3 of 3
JWI 531: Financial Management II
Assignment 1
© Strayer University. All Rights Reserved. This document contains Strayer University confidential and proprietary information and may
not be copied, further distributed, or otherwise disclosed, in whole or in part, without the expressed written permission of Strayer
University. This document is subject to change based on the needs of the class.
RUBRIC
Weight: 18% of
Course Grade
Assignment 1:
Enterprise Risk Management and Moat Strength
CRITERIA Unsatisfactory Low Pass Pass High Pass Honors
1. Complete the
assignment
worksheet
Weight: 30%
Did not submit
worksheet or had
fewer than 60%
correct data sets
entered.
Submitted
worksheet had
between 60%
and 69% correct
data sets.
Submitted
worksheet had
between 70%
and 79% correct
data sets.
Submitted
worksheet had
between 80%
and 89% correct
data sets.
Submitted
worksheet had
90% or higher
correct data sets.
2. Present
synopsis of
data
Weight: 30%
Synopsis was
missing,
incomplete,
inaccurate, or did
not align with
data.
Synopsis was
overly simplistic;
restated the
data, but did not
provide a
coherent
overview.
Synopsis was
good; provided
general snapshot
of key data, but
did not focus on
the
most critical
elements.
Synopsis was
very good;
focused on the
most critical
elements with
only minor
elements
unclear/missing.
Data synopsis
was excellent;
accurately
highlighted key
data presented in
both annual
reports and third-
party sources.
3. Present and
defend sound
recommended
finance
strategies
Weight: 30%
Recommended
strategies were
missing,
superficial,
and/or were not
supported by
data and
analysis. No
options were
presented.
Recommended
strategies were
basic or were not
supported by
data and
analysis or tied
to desired
outcomes. Made
minimal
reference to
options, and did
not explain why
these were not
recommended.
Recommended
strategies were
good, but lacked
clarity on how
they could be
implemented to
drive outcomes.
Addressed other
options, but was
unclear why
these were not
chosen.
Presented and
defended very
good finance
strategies; solid
connection to
core finance
principles and to
real-world
circumstances.
Very good
consideration of
viable options
with good
rationale for why
options were not
chosen.
Presented and
defended
excellent finance
strategies;
exemplary
connection to core
finance principles
and to real-world
circumstances.
Excellent
consideration of
viable options with
very clear
rationale for why
options were not
chosen.
4. Include
appropriate
citations and
use
professional
writing
standards
Weight: 10%
No citations
provided and/or
references to
course materials
were missing or
did not support
key content in
submission;
numerous writing
mistakes.
Included some
citations and
references to
course materials,
but failed to cite
for several key
references;
contained
distracting
grammatical or
formatting errors.
Citations and
references to
both course
materials and
additional
sources were
properly
documented;
contained some
grammatical and
formatting errors.
Citations and
references to
both course
materials and
additional
sources were
properly
documented;
contained minor
grammatical and
formatting errors.
Citations and
references to both
course materials
and additional
sources were
properly
documented; free
from grammatical
and formatting
errors; adhered to
maximum length.