Questions and Topics We Can Help You To Answer:
Financial Analysis.
Select one pair of companies from the following list:
• Lowe’s (LOW) and Home Depot (HD)
• Dollar General (DG) and Dollar Tree (DLTR)
• UPS (UPS) and FedEx (FDX)
• McDonald’s (MCD) and Wendy’s (WEN)
• Target (TGT) and Kohl’s (KSS)
• Agco (ACGO) and Deere (DE)
• Macy’s (M) and Dillard’s (DDS)
• Sherwin Williams (SHW) and PPG (PPG)
Review the most recent annual reports for each of the two companies. Gain an understanding of each company’s products and services, the markets they serve, and their financial performance.
Complete a financial analysis to determine which of the two companies is the better performing by looking at the most recent financial reports.
For the purposes of this analysis, a well performing company is one whose returns are better than their peers and the industry average over a long period of time (return on invested capital (ROIC).
To demonstrate superior performance, a company generally has consistent annual revenue and profit growth; high profit margins on revenues; high operating margins, high sales per employee; high sales per square foot of floor space (retail); good inventory management (inventory turns), and a strong balance sheet with positive free cash flow.
Good financial performance is the result a good business strategy that is executed well and often includes: investments in appropriate technology; good leadership; talented and dedicated employees; gaining and maintaining a competitive advantage, and a focus on strategic goals, the strategic use and development of technology, and cost management.
Complete a financial analysis to show a comparison of the two companies using standard financial metrics. Based on the analysis, determine which company is better performing.
Based on your conclusions, explain why the better company achieves better performance than its competitor. What does the company do well to achieve the superior financial performance? What can they improve on to even do better?
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The following is a list of the topics for the short paper assignments.
All papers must be from 5-7 pages in length, follow APA writing style guidelines, and use at least three outside references.
Each paper must have a cover page; an abstract; an introduction which clearly states the purpose of the paper and gives a brief background of the case the and topics to be covered; the body of the paper which is the analysis); a closing paragraph which summarizes the key point of the case; and a reference page with the outside sources used in proper APA format. The use of headings for each of the major sections of the paper is suggested as it makes the paper more professional looking and easier to follow.
Each paper is worth 100 points toward your final course grade and is to be submitted when due as an Assignment in Blackboard. Papers will be graded on: (1) content (completeness, accuracy, and logical arguments based on facts and application of business models), (2) format-proper use of APA writing style format, organization and structure, and (3) grammar (spelling, punctuation, proper word use, etc.).
Papers with a Safe-Assign rating of 20% or greater must to be corrected and resubmitted before final grading or the grade will be penalized, Make sure that you cite sources in the body of the paper when taken directly from reference sources and do not copy materials to avoid a high rating.
