MSTCO103 Financial Statement Analysis ESSAY

MSTCO103 Financial Statement Analysis

ACTIVITY BRIEF FOR ASSESSMENT 1

INSTRUCTIONS

Main task

Write a Financial Analysis Report between 1500 and 2000 words, in which you are invited to apply the data analysis, as provided during the course, to The Home Depot Company during years of your choice.

I. Risks and returns
Extract from financial sites available to the public such as NYSE, https://www.nyse.com/quote/XNYS:HD, Google Finance, Yahoo Finance, Bloomberg, historic data of The Home Depot company, thereafter The Company, over TWO years. Obtain for the same time the S&P500 Index. Calculate and present the average daily holding period returns and the standard deviation of these returns for the SP500 index and The Company.

Date S&P 500 The Company

…..

…………..

…………………….

…..

…………..

…………………….

…..

…………..

…………………….

…

a. Plot the holding period returns from the Company against the SP500 Index

b. From the graphs in part a) describe the nature of the correlation between the stock returns of The Company and the returns for the SP500 index.

c. Obtain from Standard and Poor or alternative source such as Yahoo

Finance, https://finance.yahoo.com/quote/HD/key-statistics/ the beta of The Company.

d. Assume that the Treasury bill rate is 2% and that the expected market return is 6%. In consideration of the betas for The Home Depot Company, estimate an appropriate rate of return, using CAPM.

II. Financial statement analysis
To complete this section, access the 10-K yearly report of The Home Depot Company, registered with the SEC for the year of your choice, from The Company’s site or directly from SEC filing

site, https://www.sec.gov/edgar/searchedgar/companysearch.html

II.a Review the Report of Independent Registered Public Accounting Firm. Write a concise summary of the important items from reading these items.

II.b Analyze the balance sheet of The Company provided by 10K form. Write a summary that includes important points that an analyst would use in assessing the financial condition of The Company.

II.c Using The Company’s income statement provided in the 10K form, analyze the profitability of The Company by calculating any ratios deemed necessary for the past three years. Ensure to calculate sales growth and operating expenses evolution for each two-year period presented.

II.d Identify strengths and weaknesses and provide your opinion about the investment potential and the creditworthiness of The Company.

FORMAT

Your submission must meet the following formatting requirements:

· Submit up to two files only.

· Required file format for main submission: PDF.

· Additional file format for optional additional deliverables: Excel spreadsheet (.xlsx).

· Additional file requirements: Excel format of data pertaining to section I. Other details:

· Font size 12

· Double-spaced

· Number of words: between 1500 and 2000.

All refencing and citations require Harvard referencing style.

LEARNING OUTCOMES

Provide the application of the financial function. Elucidate the role of finance in business

Examine and correlate events that effect the current business environment and share valuation. Classify risks inherent with business.

Help understanding the financial decision making using financial data.

Analyze financial statements from various external and internal stakeholders’ perspective.

ASSESSMENT CRITERIA

I.a	Plot the holding period returns from the Company against the SP500 Index	10 points
I.b	Describe the nature of the correlation between the stock returns and the returns of the market	15 points
I.c	Obtain from Standard and Poor or alternative source such as Yahoo   Finance, https://finance.yahoo.com/quote/HD/key-statistics/ the beta of The Company.	10 points
I.d	Estimate an appropriate rate of return, using CAPM.	15 points
II.a	Review the Report of Independent Registered Public Accounting Firm. Write a concise summary of the important items from reading these items	5 points
II.b	Analyze the balance sheet of The Company provided by 10K form. Write a   summary that includes important points that an analyst would use in assessing the financial condition of The Company.	15 points
II.c	Using The Company’s income statement provided in the 10K form, analyze the profitability of The Company by calculating any ratios deemed necessary for the past three years. Ensure to calculate sales growth and operating expenses   evolution.	15 points
II.d	Identify strengths and weaknesses and provide your opinion about the investment potential and the creditworthiness of The Company.	15 points

Rubric: discussion forums

Criteria	Accomplished (A)	Proficient (B)	Partially proficient (C)	Borderline (D)	Fail (F)	Weight on grade
Content knowledge	Discussion promotes sophisticated use of content. Posts demonstrate participants’ mastery of content knowledge. This is evidenced by extensive use of concepts and terminology across most or all   posts/threads.	Discussion promotes basic use of content. Posts demonstrate participants’ adequate understanding of content knowledge. This is evidenced by use of concepts and terminology across some posts/threads. Examples depict   understanding of	Discussion promotes uncertain or misguided use of concepts. Posts demonstrate participants have not fully grasped content knowledge. This is evidenced with only some use of concepts and terminology across posts/threads.   Examples are	Discussion promotes use of content that lacks coherence. Posts demonstrate limited understanding of content knowledge. This is evidenced with little or no use of concepts and terminology across posts/threads.   Examples are	Discussion does not promote basic use of content. Posts do not demonstrate participants’ adequate understanding of content knowledge. Examples do not depict understanding of concepts and are unclear and   inaccurate.	20%

	Examples depict understanding of concepts and are clear and accurate. Posts engage   concepts critically.	concepts and are clear and accurate.	correct with some details.	correct with few details
Connection	Posts connect to the assignment/previous posts by addressing most or all its components and linking them to course material or topics learned.   Posts draw insightful links between course content and professional practice, with a detailed explanation of participants’ own professional practice.	Posts connect to the assignment/previous posts by addressing some of its components.   Relevant course topics are mentioned with connections to course material or topics learned with some details/elaboration. Posts draw links between course content and participants’ own professional practice, with some elaboration still needed.	Posts do not connect to the assignment/previous posts and address few components of the assignment/previous post. Relevant course topics are mentioned with very few connections to course material or topics learned, or with no details or elaboration. The participants rarely or never mention their own professional practice.	Posts make only minimal reference to the assignment/previous posts and address hardly any components of the assignment/previous post. Relevant course topics are mentioned with very limited connections to course material or topics learned, or with minimal details or elaboration.   Participants’ professional practice is not mentioned.	Posts do not connect to the assignment/previous posts by not addressing of its components.   Relevant course topics are not mentioned with connections to course material or topics learned with some details/elaboration. Posts do not draw links between course content and participants’ own professional practice, with no elaboration.	20%
Collaboration	Discussion across the posts serves to build new ideas or stimulate further insight.	Posts mostly point to areas of agreement or disagreement and asking clarification questions about   previous posts.	Posts are disjointed.	Little attempt is made to respond to previous comments and/or discussion questions.	Posts do not point to areas of agreement or disagreement and do not ask clarification questions about   previous posts.	20%
Timeliness	Participants show a lot of initiative by posting replies or comments within days. Participants invite peer responses and engage in meaningful interaction in the discussions.   Discussion ends by a deadline (e.g. end of that module).	Participants show some initiative by posting replies or comments within one week.   Participants invite responses from classmates. Discussion ends by a deadline.	Participants show little initiative by posting replies or comments after more than one week. Participants suggest few ideas that encourage responses.   Discussion among participants begins late or not at all (e.g. instructor must prompt them when the module is over).	Participants show no initiative by posting replies or comments after more than one week. Participants suggest no ideas that encourage responses.   Discussion among participants is very limited.	Participants do not show any initiative by not posting replies or comments within one week.   Participants do not invite responses from classmates. Discussion does not end by a deadline.	20%
Conventions	Overall, participants follow online conventions, extend courtesy towards fellow participants by being respectful, polite and adopting a positive tone in posts. Participants compliment and provide constructive feedback to previous posts.	Overall, participants follow online conventions, extend courtesy towards fellow participants by being respectful, polite and adopting a positive tone in posts.	Overall, participants do not always follow online conventions and occasionally do not extend courtesy towards fellow participants, make curt responses or use a slightly critical tone in posts.   Participants sometimes do not acknowledge previous posts.	Overall, participants sometimes follow online conventions and at times lack courtesy towards fellow participants, make curt responses or use an overly critical tone in posts. Participants often do not acknowledge previous posts.	Overall, participants do not follow online conventions, lack courtesy towards fellow participants by being disrespectful, impolite and adopt a negative tone in posts. Participants fail to acknowledge previous posts.	20%

Rubric: written assignments

Criteria	Accomplished (A)	Proficient (B)	Partially proficient (C)	Borderline (D)	Fail (F)	Weight on assessment
Problem identification	The business issue has been correctly identified, with a competent and	The student correctly identified the issue(s),	The student correctly identified the case (issues), considering	The student correctly identified the issue(s) but	The student failed to correctly identify the	30%

	comprehensive explanation of key driving forces and considerations.   Impact on company operations has been correctly identified. Thorough analysis of the issue is presented.	taking into account a variety of environmental and contextual drivers. Key case information has been identified and   analyzed.	obvious environmental/con textual drivers.   There is evidence of analysis, but it lacks depth.	analysis was weak. An absence of context – the work is basically descriptive with little analysis.	issue(s); analysis was incorrect or too superficial to be of use; information was misinterpreted.
Information gathering	The student showed skill in gathering information and analyzing it for the purposes of filling the information gaps identified.   Comprehensive and relevant.	Relevant information gaps were identified and additional relevant information was found to fill them. At least two different types of sources were used.   The student demonstrates coherent criteria for selecting information but needs greater depth.	The student correctly identified at least one information gap and found relevant information, but which was limited in scope. Some evidence of sound criteria for selecting information but not consistent throughout. Needs expansion.	An information gap was identified and the student found additional information to fill it. However, this was limited in scope. Weak criteria for the selection of necessary information.	Information was taken at face value with no questioning of its relevance or value. Gaps in the information were not identified or were incorrect.	20%
Conclusions	The student evaluated, analyzed, synthesized all information provided to create a perceptive set of conclusions to support the decisions and   solutions.	The student evaluated, analyzed and synthesized to create a conclusion(s) which support decisions and solutions.	The student reached conclusions, but they were limited and provided minimal direction for decision- making and solutions.	The conclusion was reasonable but lacked depth and would not be a basis for suitable strategy   development.	The student formed a conclusion, but it was not reasonable. It was either unjustified, incorrect or unrelated to the case in   hand.	25%
Solutions	The student used problem solving techniques to make thoughtful, justified decisions about difficult and conflicting issues. A realistic solution was chosen which would provide maximum benefit to the company.   Alternative solutions were explored and ruled out.	The student used problem solving techniques to make appropriate decisions about complex issues.   Relevant questions were asked and answered. A realistic solution was chosen. Alternatives were identified, explored and ruled out.	The student used problem-solving techniques to make appropriate decisions about simpler issues.   The solution has limited benefit but does show understanding of implications of the decision. Alternatives were mentioned but not explored.	The student used problem solving techniques to make decisions about simpler issues but disregarded more complex issues.   Implications of the decision were not considered. Alternatives were not offered.	The student formed a conclusion, but it was not reasonable. It was either unjustified, incorrect or unrelated to the case in h

MSTCO103 Financial Statement Analysis ESSAY

Write my Essay. Premium essay writing services is the ideal place for homework help or essay writing service. if you are looking for affordable, high quality & non-plagiarized papers, click on the button below to place your order. Provide us with the instructions and one of our writers will deliver a unique, no plagiarism, and professional paper.

Get help with your toughest assignments and get them solved by a Reliable Custom Papers Writing Company. Save time, money and get quality papers. Buying an excellent plagiarism-free paper is a piece of cake!

All our papers are written from scratch. We can cover any assignment/essay in your field of study.