Using the data in the excel attached present a comprehensive analysis of the two companies (US Food Holding Corp and Perfomance Food Group) in Word. This analysis should be an executive level
analysis to be presented to your management team to allow them to make
decisions regarding the two companies. You
will:
·
Revise the work you submitted in HW #2 based on my feedback
·
Use Excel to add charts, tables,
bar and/or pie charts, line graphs, etc. to clearly present ratios and trends
to the analysis section to effectively make your point to present key
information in a more understandable and readable way.
·
Analyze the ratios and the vertical/horizontal analysis based on
research. Your aim should be to explain
the why behind the results using the companies’ annual reports, news articles,
magazine articles, etc.
·
Prepare a Word document that succinctly yet thoroughly evaluates the two
companies. Focus on the crucial
differences and major points. Do not
spend more than one page telling me what these companies sell or the history of
the companies.
·
Incorporate the charts, graphs, financial statements, etc. from HW 2 into
your word document as tables.
·
Add a References page that provides links to your references.
Format
requirements (Word):
·
The text portion of your
document should be a maximum of fifteen pages (excluding title pages, executive
summary, tables, charts, exhibits, appendices, etc.) – Make your point within fifteen
pages. Edit your writing to include the
most important points concisely. You can
incorporate tables and charts within the main body of the report to improve
readability, however the written text (body) of the paper should be fifteen
pages only. Once you drop in the tables,
charts, etc., the paper will be more than fifteen pages, but the text portion
should meet the requirement of no more than fifteen pages.
·
Typed, double-spaced – do not
format in 1.5 or 1.15.
·
One-inch margins all around.
·
12 point Times New Roman font.
·
Use headings to organize the
paper.
·
Be careful about grammar,
spelling, punctuation, etc.
·
Your paper should be readable,
cohesive, thematic, and persuasive.
·
Analyze the tables.
·
Use bar charts, line graphs,
etc. within the paper to clearly present ratios and trends and to effectively
make your point.
·
Allocate the space in this
paper properly to thoroughly cover the topics without overly emphasizing
unimportant topics.
·
Word document – do not submit a
pdf. Complete the analysis/ratio section
in Excel initially, then drop them into Word at the end.
·
Be very careful not to
plagiarize any part of your paper. Any
more than three words in a row are a big red flag for plagiarism. Breaches of this GSW’s plagiarism policy will
be subject to receiving a zero on the assignment or an F in the course.
·
Submit the electronic version
of the report in GeorgiaVIEW.
Your written analysis should provide a
useful report or recommendation. Extra
credit that is optional includes the two companies cash flow analysis, asset
utilization, debt servicing, and risk assessments.
I will grade the reports on the basis of
content (quality of analytical information) and communication (quality of
written information in conveying the message).
Reports that meet expectations in these two dimensions will receive
grades in the B range. Reports that
exceed expectations (and stand out from the rest) will receive grades in the A
range. Reports that do not meet
expectation will receive a grade lower than a B. (See below for breakdown of
grade)
Sections for Paper:
·
Cover page including names of
both companies, students’ names, ACCT 6200 Accounting for Managers, and date
·
Table of Contents (APA style)
·
Summary of each company, their
major competitors and anything else that you think would help an outside reader
know what both companies are about
·
Financial Statement Analysis
o
Income statement analysis – use
what you have done in the first two homework assignments to break down key
components through ratios, common-size financial statements, charts/graphs,
etc.
o
Balance sheet analysis – use
what you have done in the first two homework assignments to break down key
components through ratios, common-size financial statements, charts/graphs,
etc.
o
Statement of Cash Flows – use
what you have done in the first two homework assignments to break down key
components through ratio analyses, charts/graphs, etc.
o
Statement of Equity – use what
you have done in the first two homework assignments to break down key
components through ratios analyses, charts/graphs, etc.
·
Profitability analysis – gross
profit margin, return on assets, return on equity
·
Managerial Analysis and
Recommendations – you will end this assignment with a recommendation of which
company you would recommend and why. You can utilize additional charts/graphs,
information from the MD&A from the annual report or anything else you find
that will be useful
·
References
·
Optional (extra credit) – asset utilization, cash flow analysis, debt servicing, risk
assessments
Breakdown
of Grade:
· 10 points – format (no more than
15 pages in body of paper, double-spaced, correct font, margins, etc.)
· 5 points – cover page, table of
contents, references
· 15 points – grammar, spelling and
punctuation
· 10 points – readable, cohesive,
thematic, persuasive – should be organized and flow from paragraph to paragraph
and from section to section
· 5 points – summary of each company
· 30 points – financial statement
analysis
· 10 points – profitability analysis
· 15 points – managerial analysis
and recommendation
Suggestions:
·
In HW #3 you
will supplement and interpret the tables to analyze the financial
strengths and relative merits of the two companies you selected in HW 1 and 2.
·
Make sure that you compare and
contrast the two companies with the goal of helping me understand the
company’s strategic business decisions to their operating results, ROA, and
ROE. Pretend that I am your boss or client, and you are asked to provide
an analysis to help me decide which company to invest in. For instance,
help me answer some “why questions.”
Here were some suggestions from a prior year’s assignment:
· Why did Target shrink their high margin clothes, home goods, and
electronic square footage in order to add low margin grocery products?
Has that strategy worked for them?
· Why did Target lose money in 1-31-15? What were those
discontinued operations? Hint: Canada
· Is Dollar General going to catch up with Walmart in terms of market
share and profitability? They are both low cost providers and it seems
like there are a lot of Dollar Generals opening up everywhere.
· Is Walmart as strong as it used to be? Is the neighborhood
market idea going to help Walmart maintain its status?
· Interpret the Cost of Goods Sold and Gross Profit numbers in light
of these firms’ business propositions. These numbers are perhaps the most
important numbers on the I/S.
· How much of their sales do these firms convert to profit (NI)
and why?
· The common sized income statements will help you compare each
companies expenses. Focus on CGS in particular. Walmart – 74.87%.
Target – 70.47%. Dollar General – 69.04%. Am I the only one
wondering why Walmart’s CGS are the highest? That is a huge difference.
Help me understand this.
· Look at the Financial Summary and Management Discussion and Analysis
sections to see how the company summarizes their operating results. Pay
particular attention to the ratios and to how the company analyzes their
financial results.
· Use charts, graphs, and other visual effects to bring the numbers to
life.
·
NOTE: Keep in mind that the majority of this paper is taking what you
have done in homework #1 and #2 and putting it in a report format. You do have
to add information about each company, add additional charts/graphs (at least 3
more than you have already done for a minimum of 5 visuals total) and do a
managerial analysis and recommendation.
Important information:
·
Deadline to turn in is April 23
·
Turn in the following:
o
Revised Excel Homework #2
o
Report in Word format for
Homework #3
o
Feedback for Homework #3
