Sign In
Not register? Register Now!
Essay Available:
Pages:
5 pages/≈1375 words
Sources:
Check Instructions
Style:
APA
Subject:
Management
Type:
Essay
Language:
English (U.S.)
Document:
MS Word
Date:
Total cost:
$ 21.6
Topic:

Management Essay: Financial Statement Analysis of Hewlett-Packard “HP” Inc.

Essay Instructions:

Overview
Hi, I need you one more time go over word and excel project, I am uploading review from my professor and you can check what he need. I also need more References bc he mention this several times.
Please go over your work one more time.
In this Work Product Assessment, you will examine various financial reports of a publicly traded company and conduct financial ratio analysis to demonstrate your ability to understand a company’s financial health and analyze ways to improve in areas revealed as being below industry average.
Professional Skills: Written Communication, Technology, and Critical Thinking and Problem Solving are assessed in this Competency.
You are strongly encouraged to use the Academic Writing Expectations Checklist when completing this Assessment.
Your response to this Assessment should:
• Reflect the criteria provided in the Rubric.
• Adhere to the required assignment length.
• Conform to APA style guidelines. You may use Walden Writing Center’s APA Course Paper Template.
This Assessment requires submission of two (2) files. Save your files as follows:
• Save the Excel file as SF002_Excel_firstinitial_lastname (for example, SF002_Excel_ J_Smith).
• Save the Word file as SF002_Word_firstinitial_lastname (for example, SF002_Word_ J_Smith).
When you are ready to upload your completed Assessment, use the Assessment tab on the top navigation menu.
Instructions
Before submitting your Assessment, carefully review the rubric. This is the same rubric the assessor will use to evaluate your submission and it provides detailed criteria describing how to achieve or master the Competency. Many students find that understanding the requirements of the Assessment and the rubric criteria help them direct their focus and use their time most productively.
Rubric
Access the following to complete this Assessment:
• Financial Ratio Excel Spreadsheet
• Text: Fundamentals of Financial Management, Chapter 4, "Analysis of Financial Statements"
Prompts
Taking the role of a financial analyst within the company, prepare an executive dashboard (performance report) on a large, publicly traded company of your choice (e.g., Cisco, Walmart, IBM, Apple, etc.) by computing and comparing its ratios against the 11 industry average ratios listed in Problem 4-23 on page 129 of the text.
It is imperative for you to understand the use of good academic writing (visit the Walden Writing Center), use of online library for academic resources (not internet sources), SEC.gov for financial filings (not annual reports from a company website), and most importantly, your job is to do vetting of anything companies claim on their websites. The use of Wikipedia, Investopedia, financial related websites, blogs, etc. is not appropriate for this competency.
• Use the provided Financial Ratio Excel Spreadsheet to show the computed financial ratios for your chosen company and industry averages. Prepare your performance report to show calculations for the 11 ratios listed on page 129, as well as a comparison of your computed ratios with industry averages. It is a good idea to be familiar with each industry's classification! A good place to start is to look for the North American Industry Classification System (NAICS) and look for the industry of your chosen company through https://www(dot)census(dot)gov/eos/www/naics/. Please notice how it is a US Government website, not a ".com". Then, visit the Walden University Library and access the IBIS World database in order to look for the appropriate industry standards: https://ezp(dot)waldenulibrary(dot)org/login?url=https://clients1(dot)ibisworld(dot)com. The comparisons, including a list of your computations in a table, should be added as an appendix to the memo described below and submitted as a separate Excel spreadsheet.
• Write a memo (approximately 2–3 pages) to your supervisor explaining your findings and your recommendations for where improvements are needed to increase financial health. Be sure to Include the following:
o Areas within the company that are both above and below industry standards
o An explanation of the limitations of using ratio analysis
o The qualitative factors that play a role in improving the company’s financial health
In the memo, suggest some specific ways in which the company can plan to improve below industry average ratio performance over time. Suggest annual targets over the next three years to catch up with or surpass industry averages. Explain why your recommendations should be effective.

Essay Sample Content Preview:

Financial Statement Analysis of Hewlett-Packard “HP” Inc.
Your Name
Subject and Section
Professor's Name
May 2, 2020
H.P. (Hewlett-Packard) Inc. is in the U.S. industry of computer manufacturing. I inspected the firm's financial statements through 11 financial ratios and assessed them versus the average ratios listed on IBIS World's database, particularly from the IBISWorld Industry Report 33411a: Computer Manufacturing in the U.S. (Ulama, 2019). I obtained H.P.'s financial statements for the fiscal period ending October 31, 2019 (form 10-K) from the website of SEC (SEC.gov). The firm is below average in terms of current ratio, EBITDA coverage, days sales outstanding, and fixed assets, and total assets turnover. The debt to assets ratio, time interest earned ratio, inventory turnover, profit margin, and return on total assets and common equity are above average, which means that they are capable of paying the interest due from them, they are not overspending on inventories, and they are generating sufficient profits through the proper use of their resources.
One ratio that needs improvement is the current ratio, as it is below average. This means that they don't have enough existing assets to pay off current liabilities. Since there is a forecasted increase in demand for computers in the succeeding years, the company should buy materials using the funds from shareholders to avoid incurring more liabilities. At the same time, they should also pay off more current liabilities using the proceeds from their sales. Since raising this ratio is not that easy, they should target a ratio of 1.2, 1.6, and 2 for the next three years. I believe that these targets are realistic and achievable and will help the firm surpass the average. Since the expected growth rate in industry revenue is minimal, the firm may still generate more cash by not just focusing on sales, but also by proper planning so they could reduce costs. The EBITDA coverage is also below average, which means that the firm may be having a hard time making lease payments and repaying loans. One strategy to elevate this ratio is the refinancing of business loans to obtain a lower interest rate to settle the remaining loan balances. Since there is a forecasted increase in revenue and profit for the computer manufacturing industry, H.P. should take advantage of this and target to sell more computers and incur fewer costs to improve their profitability and eventually raise their EBITDA coverage ratio. I believe that the company should target a ratio of 4.3, 4.8, and 5.3 for the next three years as this is achievable considering the anticipated demand for computers. Although the expected growth rate in industry revenue is minimal, the firm may still improve their profitability at a higher rate than the industry average by being efficient and incurring fewer costs. For the days' sales outstanding, it is well that H.P. is below the average as it signifies that they have special credit collection rules (Charitou et al., 2010). Such helps enhance the firm's cash flows. Notwithstanding the forecasted decline in computer prices for the next five years based on the IBISWorld's report, the demand is expected to grow, so the firm must have sufficient money to finance it...
Updated on
Get the Whole Paper!
Not exactly what you need?
Do you need a custom essay? Order right now:
Order

👀 Other Visitors are Viewing These APA Essay Samples:

HIRE A WRITER FROM $11.95 / PAGE
ORDER WITH 15% DISCOUNT!
Order Now