09 Oct Strategic Corporate Financial Analysis Project and course project

For this project, you will develop a strategic financial analysis of a selected organization, either real or hypothetical. Your analysis should demonstrate mastery of financial concepts covered in the course, especially Time Value of Money (TVM), Weighted Average Cost of Capital (WACC), ratio analysis, and strategic decision making.

You will use these tools to assess the organization’s financial health, investment opportunities, market position, and long term strategy.

Core Requirements

Your project must include:

1. Ratio Analysis

Perform a full ratio analysis including:

• Liquidity Ratios

• Profitability Ratios

• Leverage Ratios

• Efficiency Ratios

Interpret what these ratios indicate about the company’s strengths, weaknesses, risk exposure, and future outlook.

2. TVM Applications

Use Time Value of Money techniques to evaluate at least two investment opportunities.

Required methods:

• Net Present Value (NPV)

• Internal Rate of Return (IRR)

Show all calculations and explain the strategic implications of your results.

3. WACC Calculation

Calculate the firm’s Weighted Average Cost of Capital using researched or assumed data.

Discuss how WACC affects:

• Capital budgeting decisions

• Firm valuation

• Risk assessment

4. Capital Structure Discussion

Analyze the company’s use of debt and equity financing.

Discuss how this impacts:

• Cost of capital

• Shareholder returns

• Financial flexibility

• Strategic risk

5. Statista Market Research Integration

Use at least one Statista chart, report, or dataset to support your analysis.

Examples include:

• Industry growth trends

• Consumer demand data

• Market share rankings

• Global market forecasts

• Competitor positioning

Explain how the Statista data supports your financial conclusions or strategic recommendation.

6. Excel Modeling

Use Excel models for:

• TVM calculations

• WACC analysis

• Ratio calculations

• Scenario modeling if applicable

Include tables, charts, screenshots, or appendices from Excel.

Recommended Report Structure

1. Introduction

2. Company Overview

3. Ratio Analysis

4. TVM Investment Analysis

5. WACC Analysis

6. Capital Structure Review

7. Statista Market Research Findings

8. Strategic Recommendation

9. Conclusion

Guidelines

• Use professional business writing

• Explain all calculations clearly

• Include charts and tables where useful

• Cite all sources in APA 7 format

• Include Statista citation if used

Length Requirement

8 to 10 pages including charts, tables, and references.

Submission Instructions

Submit through the LMS assignment link only.

Email submissions are not accepted.

Keystone Assignment: Strategic Corporate Financial Analysis Project

COs: 4

SLOs: 7

Purpose

This Keystone Assignment is the culminating assessment for the course. Students will integrate financial statement analysis, valuation methods, forecasting, capital budgeting, and strategic decision making to evaluate a real publicly traded company. The project measures mastery of course outcomes and student learning outcomes through applied managerial finance analysis.

Course Outcomes Aligned

CO 1. Provides mastery of a systematic approach to managerial finance and improves critical thinking.

CO 2. Reinforces financial statement analytics to develop skills for decision making and problem solving.

CO 3. Provides mastery of appraising techniques and models for investment and financial decisions.

CO 4. Provides mastery of techniques and models for capital structure, planning, and strategic finance decisions.

Student Learning Outcomes Aligned

SLO 1. Apply financial analysis techniques to Income Statement, Balance Sheet, and Cash Flow Statement.

SLO 2. Use common size statements and ratio analysis for decision making.

SLO 3. Interpret and apply PV, FV, RATE, NPV, and IRR.

SLO 4. Synthesize financial data for stock and bond valuation concepts.

SLO 5. Apply CAPM, WACC, and financial structure concepts.

SLO 6. Evaluate working capital performance and operational efficiency.

SLO 7. Compare domestic and international financial environments when relevant to industry benchmarking.

Select a publicly traded company from a U.S. stock exchange.

Gather 5 years of financial data (Income Statement, Balance Sheet, and Cash Flow Statement).

Perform the following:

A. Historical Performance Analysis

Calculate and interpret key ratios (profitability, liquidity, leverage, efficiency)

Evaluate trends in revenue growth, margins, and capital structure

B. Benchmarking

Compare your company’s performance to at least two competitors and industry averages

Provide commentary on relative strengths and weaknesses

C. Financial Forecasting

Build 3-year forecasted financial statements in Excel

Include assumptions for sales growth, expense trends, capital investment, etc.

Use scenario analysis to show best, base, and worst cases

D. Strategic Recommendation

Identify a strategic opportunity (e.g., acquisition, product launch, expansion)

Use capital budgeting tools (e.g., NPV, IRR) to support the decision

Discuss the financial impact of your recommendation

E. Written Report

Write a professional, executive-style report (1500–2000 words)

Summarize findings, support with visuals/tables, and cite all sources in APA format

F. Submit Excel Workbook

Include all your data, calculations, and forecast models

Deliverables:

Written Report (.docx or .pdf, APA 7 format)

Excel Workbook with financial models

Due: Before the end of the term

Submission: Via course LMS link (email submissions not accepted)