Financial Performance and Health of an Organization Report.

NOTE: This template is provided only as a guide to organizing and completing your report submission. Follow appropriate APA styling when finalizing this document. Replace highlighted text with your content where appropriate, otherwise delete it.

Final Project Milestone One- Module Three

Financial Performance and Health

Organizational Context

• What key goods or services does your organization provide, for whom, where, and why?
• How do these features of the organization (major products or services, customers, location, etc.) help set the boundaries for business decisions?
• How is the company organized and managed (by product groups, geographic region, function, etc.)?
• How does that affect accounting and financial information and subsequent business decisions?

Recent Financial Performance

• Assess what the organization’s consolidated income statements for the last three years say about its financial performance. Use relevant indicators, graphs, and spreadsheets to support your narrative. (Include all spreadsheets in an appendix.) For example, what do the amounts and year-to-year changes in revenue, operating income, net profit or loss, and earnings before interest, taxes, depreciation, and amortization tell you? Do any items stand out?
• Assess what the organization’s consolidated cash flow statements for the same time period say about its financial performance. Use relevant indicators, graphs, and spreadsheets to support your narrative. For example, what do the amounts and year-to-year changes in cash from operating activities, cash from investing, cash from financing, and total cash flow tell you? Do any items stand out?

 

• Assess the organization’s underlying financial performance. Support your answer with the analysis above and relevant research. For example, is recent performance substantially affected by unusual events such as a major acquisition or spin-off? Is the business thriving or struggling in its industry? How do you know?

Current Financial Health

• Assess how the organization is capitalized and what that tells you about its financial health. Support your response with relevant graphs, spreadsheets, and indicators such as “cash and cash equivalents,” total debt, shareholders’ equity, current ratio, debt/equity ratio, and days sales outstanding (DSO). For example, does the organization have enough cash for payroll and other bills? Does it have the right mix of debt versus equity (stock)? How do you know?
• Does the organization have the right amount of cash and other resources (key people, technologies, reputation, physical assets, etc.) to fuel future growth? What does this suggest for business decisions? For example, if it has too much cash, should it pay a large dividend, repurchase its own shares, or reinvest the excess funds?
• Assess the financial value of the company using relevant indicators. What does your assessment imply for future business health and performance? For example, what is the business’s current market value? What is its price-to-earnings ratio? What do these suggest about investor perceptions of the business’s future?

 

 

 

Final Project Milestone Two – Module Five

Success Factors and Risks

Strategic Priorities

How do the organization’s financial and strategic priorities affect accounting procedures and business decisions? How might that affect business success? For example, is management growth-oriented or efficiency-oriented? What is the organization’s approach to risk and short- versus long-term planning horizons?

Capitalization on Non-Financial Factors

How might the organization better capitalize on nonfinancial factors such as market share, reputation, human resources, physical facilities, or patents? Support your response with relevant research and analysis.

Significant Internal Risks

This comes directly from the financial statements.

 

 

 

Final Project Milestone Three – Module Seven

In this milestone, you will project future company’s behaviors through forecasting and a hypothetical new investment project.

Projections

 

Projected Consolidated Financial Opportunities

Project the company’s likely consolidated financial performance for each of the next three years. Support your analysis with an appendix spreadsheet showing actual results for the most recent year, along with your projections and assumptions. Remember, your supervisor is interested in fresh perspectives, so you should not just replicate existing financial statements: You should add other relevant calculations or disaggregations to help inform decisions.

Projections for best and worst case scenario

Modify your projections for the coming year to show a best- and worst-case scenario based on the potential success factors and risks you identified. As with your initial projections, support your analysis with an appendix spreadsheet, specifying your assumptions and including relevant calculations and disaggregations beyond those in existing financial reports.

Discussion of finding

Discuss how your assumptions, forecasting methodology, and information gaps affect your projections. Why are your projections appropriate? For example, are they consistent with the company’s mission and priorities? Aggressive but achievable? How would changing your assumptions change your projections?

 

 

 

Final Project Submission – Module Nine

Business Opportunities

 

Likely Investment Opportunities for the Organization

Based on your knowledge of this organization, what is a likely investment it would consider and why? Be sure to describe the basic features of the investment as a foundation for considering its potential financial impact.

Cost and Benefits of the New Investment

Evaluate the approximate costs and benefits of the investment you identified, explaining how they would affect your spreadsheet projections and business decisions. Estimates are sufficient but should be grounded in common sense and insight into the organization.

Impact on Budgeting Decisions

How does the potential investment affect budgeting and related business decisions? For example, does the investment involve significant cash spending this coming year, followed by benefits in the following year? How might that affect short-term and long-term spending priorities? Does the benefit outweigh the cost?

Executive Summary

Clearly and concisely summarize your principal findings, projections, and recommendations as a manager with an eye to persuading busy executives to support your ideas and to read further. Provide your intended audience with a solid but brief sense of the parameters of your analysis and who you would consult in refining it further, and why. Remember that your goal is to convince readers of the validity of your observations while recognizing limitations that affect business decisions.

 

 

References

 

Should be on separate page, all in an APA format and listed in alphabetical order

 

 

 

 

Appendix (if applicable)

Appendix I

 

Appendix II