Competencies
In this project, you will demonstrate your mastery of the following competencies:
Analyze financial and investment decisions that add value to the organization
Analyze financing options to maximize investor value
Scenario: You chose a business during your Module Two journal assignment.
Directions
Create a report for your supervisor to share with the board of directors during their presentation. Use the
business you chose from the Project Two Business Options List (Tesla). Use Mergent Online to find the
most recent quarterly financial statements for your company. Use these statements to support your
analysis during the project. Use the Project Two Financial Assumptions document for descriptions of the
three financial options you will evaluate. Use the Project Two Financial Analysis Report template to
complete this project.
Financial Analysis and Financial Evaluation
1. Financial Analysis
A. Financial Calculations
i. Working capital
Ratios most Recent Fiscal Qtr. =$9,401,000
Ratios Same Fiscal Qtr. 1 year ago = $8,322,000
A financial metric that aims to reveal the liquidity of operations within an organisation, it helps to understand the capital employed by the business. In the case of the variation in working capital from the year before, the rise in working capital from 832 000 dollars to 9,401,000 demonstrates that the company will be better able to finance its operations as well as pay its employees and suppliers. In the event that it happens that the flow of cash for the business is lower than that threshold level, the company will remain able to manage tax and interest payment on debts. It is therefore advisable to state that the operations of the company are stable as they guarantee the continuity of the business.
ii. Current ratio
Current assets/current liabilities
Ratios Most Recent Fiscal Qtr.= 1.430823519
Ratios Same Fiscal Qtr. 1 year ago= 1.508337915
The ratio that was in place that was in place prior to the year is greater than that of the year prior. This is a problem for the company’s business operations. This is because the ratio currently measures the capacity of an organization to meet the short-term demands of its customers.
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