Create a 4-6 page report that analyzes financial ratios for a company, uses the data to tell the financial story of that company, and concludes with a recommendation on whether the company would be a viable partner based on its financial condition.
It’s essential for senior management to know the financial condition of an organization in order to make strategic decisions. In this assessment, you will apply the financial management skills learned thus far.
- Tell the financial story based on financial statements.
- Conduct a financial analysis and identify focus areas for enhancing shareholder value.
- Interpret ratio computations that are meaningful and inform business decisions and strategies.
- Make three recommendations that maximize shareholder value.
Maria Gomez is founder and president of ABC Healthcare Corporation, a company that owns hospitals, ambulatory surgical centers, urgent care centers, and outpatient clinics. She has called on you to review various financial documents and to make recommendations to maximize shareholder value.
You are one of Maria’s high-performing financial analyst managers at ABC Healthcare Corporation and she trusts your work and leadership.
Create a report that tells the financial condition of this company. Your report should provide information on the following:
- Analysis of the financial statements.
- Evaluation of the true condition and valuation of the company.
- Recommendation of actionable items for the company based on the financial analysis.
Financial Condition Analysis Report Requirements:
Remember that you’re preparing a professional document meant for executive leadership with limited time.
- Title Page.
- Executive Summary.
- Company Background.
- Overall Financial Analysis.
- Financial Ratio Analysis.
- Trend Analysis.
- Competitive Comparative Analysis.
- Appendix (if you have additional data, reports, charts, et cetera, to support your analysis).
Your report should follow the corresponding MBA Academic and Professional Document Guidelines, including single-spaced paragraphs.
- Ensure written communication is free of errors that detract from the overall message and quality.
- Format your paper according to APA style and formatting.
- Use at least three scholarly resources.
- Length: Between 4-6 pages of content, beyond the title page, references, and appendices.
- Use 12 point, Times New Roman.
By successfully completing this assessment, you will demonstrate your proficiency in the following course competencies through corresponding scoring guide criteria:
- Competency 1: Apply the theories, models, and practices of finance to the financial management of an organization.
- Analyze financial ratio analysis, trend analysis, and competitive average analysis.
- Competency 3: Apply financial analyses to business planning and decision making.
- Evaluate the provided financial statements of the firm to find its true condition and valuation.
- Competency 4: Use data to support evidence-based financial decisions.
- Develop actionable items and conclusions, based on the analysis, recommending at least three ways to maximize shareholder value.
- Competency 5: Communicate financial information with multiple stakeholders
- Tell the current financial story as to the overall health of the firm as it relates to current valuation and the future prospects of the company. Identify focus areas for enhancing shareholder value for the long term. Note what short-term steps might be necessary for longer-term gains.
Your course instructor will use the scoring guide to review your deliverable from the perspective of Maria Gomez. Review the scoring guide prior to developing and submitting your assessment.
If you are not familiar with resources for finding financial ratios
for a company, explore the following:
• MBA Program Guide – What are Financial Ratios?
• This Library Guide describes financial ratios and
provides internet and library resources.
• BizMiner. (n.d.). Free business statistics and financial
• Financial Ratios for Measuring Performance | Transcript.
• If you are unfamiliar with terminology around the
topic of financial ratios, this multimedia provides
terms and definitions.
Reading and interpreting financial statements can be
demystified. These resources can help you to gain proficiency
with financial statements; this is a critical skill in being able to
assess the financial condition of a company.
• Ross, S. A., Westerfield, R. W., Jaffe, J. F., & Jordan, B.
D. (2021). Corporate finance: Core principles and
applications (6th ed.). McGraw-Hill. Available in the
courseroom via the VitalSource Bookshelf link.
• These chapters look at the financial statements and
introduce financial analysis tools such as trend
analysis, ratio analysis, and industry average
▪ Chapter 2, “Financial Statements and Cash
Flow,” pages 19-41.
▪ Chapter 3, “Financial Statements Analysis and
Financial Models,” pages 42-81.
• Secrets of Reading Financial Reports | Transcript.
• Reading financial reports might feel like reading a
letter written in code, so this media pieces breaks it
down to demystify these very important documents.
An illustration is provided to help you decode
• Financial Statements Explained in One Minute: Balance
Sheet, Income Statement, Cash Flow Statement.
• Delve into the financial basics that will help you
understand financial statements.