The company is Tesla. Assignment: You are expected to create narrate

The company is Tesla.
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Assignment: You are expected to create narrated PowerPoint presentations where you analyze a
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company’s financial health and provide recommendations to improve performance. The
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following instructions serve as general guidelines to help you conduct your project. Feel
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free to add other information that you see fit.
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1) The instructor will assign a company that you will study. Go to the company’s
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website, Mergent Online or www.sec.gov and download the company’s latest
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10k report. Use it to describe the company, its history, its lines of business,
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where it operates, etc.
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2) Evaluate the environment the company operates in
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a. Identify the sector and industry the company operates in
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b. Use industry reports to identify the different factors that affect the
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company’s business environment (PESTEL analysis).
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Industry reports are available on Mergent Online, Business Source
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Complete database, and the ABI/INFORM database. These databases
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are provided through the VWU library. The instructions document to
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access these databases to get industry reports is listed on Blackboard
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i. Political and legal factors that affect the business: laws, regulations,
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government policies, etc.
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ii. Economic factors that affect the business: interest rates, exchange
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rate, consumer spending, unemployment rate, etc.
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iii. Social factors that affect the business: consumer trends,
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demographics, social trends, cultural trends, etc.
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iv. Technological factors that affect the business: introduction of new
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technology, new trends in technology that can either help or hurt
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your business
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v. Environmental factors that affect the business
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3) Description of financials:
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Go to finance.yahoo.com and look up your company. Follow the links to answer
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the following questions:
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– What is the most recent stock price listed for your company?
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– What is the market value of equity, or market capitalization?
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– How many shares of stock does your company have outstanding?
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– What is the most recent annual dividend?
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4) Conduct Ratio Analysis:
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Page 3 of 5
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a. Identify your company’s top three competitors
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b. Using Mergent Online (database provided by the library), look up your
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company’s ratios as well the ratios of its top 3 competitors. Use the video
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link provided on Blackboard to help you navigate Mergent Online.
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c. Evaluate short term solvency and liquidity (current ratio and quick ratio)
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over the past 5 years and explain how the company is doing compared to
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its top 3 competitors. Use graphs and ratio interpretations.
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d. Evaluate Long-term solvency (Long Term debt to Equity ratio and Total
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Debt to Equity Ratio) over the past 5 years and explain how the company
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is doing compared to its top 3 competitors. Use graphs and ratio
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interpretations.
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e. Evaluate the company’s ability to cover its interest payments (Times
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interest earned ratio (called Interest coverage in Mergent Online) over the
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past 5 years and explain how the company is doing compared to its top 3
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competitors. Use graphs and ratio interpretations.
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f. Evaluate asset management (inventory turnover, days sales in inventory,
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fixed assets turnover (called Net PPE turnover in Mergent Online), total
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asset turnover) over the past 5 years and explain how the company is
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doing compared to its top 3 competitors. Use graphs and ratio
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interpretations.
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g. Evaluate Profitability measures (profit margin, return on assets, return on
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equity) over the past 5 years and explain how the company is doing
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compared to its top 3 competitors. Use graphs and ratio interpretations.
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h. Using yahoo.finance.com, evaluate the most recent available market value
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measures (trailing and forward price to earnings ratio (P/E), price to sales
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ratio (P/S), market to book ratio (called price to book or P/B in Yahoo
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Finance). Compare the company’s most recent ratios to its top 3
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competitors and explain how the company is doing. Use graphs and ratio
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interpretations.
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i. Conduct a DuPont Identity analysis on the firm and its other 3 competitors:
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ROE= Profit Margin * Total Asset Turnover * Equity Multiplier
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Compare and contrast the source of ROE for your firm and for the three
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competitors. Can you identify your company’s source of advantage or
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disadvantage?