Analyzing a Company’s Fundamentals of Financial Management
For the purposes of this project you may take one of two positions. One position will be as a Financial Analyst/Planner reviewing a publicly held corporation as a possible addition to a portfolio. The other position will be as a Financial Analyst within a corporation reviewing the annual statements of a company and making recommendations on how to proceed in the future from a financial standpoint. (I don’t want to influence you but about 98% choose the first option.)
How to Analyze a Company
1. Analyze the company’s Fundamentals of Financial Management in detail. (Chapters 1 through 4 Describe the process.)
2. Valuation of securities. (Stocks, bonds, Risk management) For example answer the question of “How does in fit in a portfolio?” (ie. Is the company volatile in its Stock Price and a poor (stock price) performer, are the earning volatile yet has strong and consistent dividends and therefore perhaps a good choice risk adverse portfolio.)
( Chapters 5 through 9 Describe the valuation)
3. Add your own ideas and areas of analysis. If you are taking the alternate approach of an internal corporate analyst, I would place emphasis on Chapter 10 and 11 for the analysis.
Here are the topics in my books that has to do with the project. I have touch most of this in the paper: Introductions, syllabus review: Chapter 1 Overview of Finance, Chapter 2 Time Value of Money, Chapter 3 Financial Statements, Chapter 4 Analysis of Financial Statements, Chapter 5 Bonds, Bond Valuation and Interest Rates, Chapter 6 Risk and Return, Chapter 7 Portfolio Theory, Chapter 8 Stocks and Stock Valuation.