REMINDER : This entire project is to be written and presented in the first person as the CEO. There is no minimum or maximum length
Perform a financial analysis of your selected organization in order to determine its current financial condition and identify opportunities and threats. This analysis should accomplish two things: (1) establish a baseline for current financial performance, and (2) provide a cost/benefit analysis for the strategy (your “winning move”) you are proposing and the changes you will need to make to execute that strategy. As a reminder, the purpose of this part of the Capstone Project is not for you to present an exhaustive analysis of all financial elements of the organization. The purpose is to focus on those elements which impact (and are impacted by) your plan. Approach this as a CEO, not a CFO. Where will you get the money you need to fund your initiative? What is the proposed payoff in terms of increased sales or decreased expenses? How do these stack up to key benchmarks (like IRR) against which your success will be measured? Which market related financial data impact your numbers, and strengthen your conclusions and help you defend your arguments? As you analyze, derive meaning from, and present your recommendations, you will want to consider the following:
1. Asset Review: Cash Position, Working Capital (Current Assets vs Current Liabilities), Long Term Assets (including depreciation/condition) and Intangible Assets
2. Company Structure: Debt vs Equity, Liquidity, Dividend Payment, Debt Terms/Interest
3. Growth: Revenue Growth Trends, Net Income Growth Trends
4. Profit Margins: Gross Margin, Operating Margin, Net Income Margin
5. Cash Flow: Cash from Operations, Investing, Financing Format In keeping with the purpose of this exercise, you should attempt to present your financial analysis in an efficient way which shows that you understand what really matters. The suggested guideline is 2 pages for your analysis/recommendation. Please place any supporting documents (spreadsheets, reports, etc.) in an Appendix.