Description

MBA 520 Module Two Activity Guidelines and Rubric Overview: For this task, you will analyze the financial health of two competitors in the same industry based on their ratios, using the provided Excel spreadsheet template. Then, you will complete your analysis by writing a short synopsis of your findings in the space below the analysis. Prompt: Follow the steps below to analyze the financial health of two competitors. Use the Module Two Activity Template to complete this task. Select two companies operating in the same industry (for example, Macy’s and Dillard’s). The companies have to be in the same business for the ratios to be valuable to your analysis. Then, complete the template, providing the following:  Ratio Research: Use the template to analyze the selected ratios (profitability, financial strength, valuation, management effectiveness, dividends, and efficiency) for both of the competitors. To complete this part, you can reference the Morningstar website in the Module Two resources to obtain the ratios. You can also use the SEC EDGAR Company Filings resource from Module One to obtain the ratio from annual reports. Please note: The ratios have to be from the same time period (the same year for both competitors). For training on how to use Excel, visit the Hoonuit training site or search YouTube to find appropriate Excel training videos.  Industry Ratios: To analyze ratios for the companies, you also need to obtain the ratios for the industry that the competitors operate in. Industry values for the ratios can be found in the index column. If no index value is available, put the five-year averages for both companies in the industry column and use these figures for the industry comparison of your ratio analysis.  Ratio Analysis: Compare the two companies based on their ratios. Use the last column in the template to write in detail how each company is doing based on the ratios. Compare the company ratios to the industry and each other.  Summary: This short write-up should be done directly in your Excel spreadsheet. o What is a ratio analysis? Briefly explain in about one paragraph. Please quote your resource. o Referring to the ratio analysis, in which company would you be willing to invest and why? Note: This is a theoretical exercise. You should not be investing according to this analysis. Rubric Guidelines for Submission: Complete and submit the Excel Worksheet template provided. Critical Elements Exemplary Proficient Needs Improvement Not Evident Value Ratio Research Provides accurate data for all the required ratios in the categories of profitability, financial strength, valuation, management effectiveness, dividends, and efficiency (100%) Provides data for ratios in the categories of profitability, financial strength, valuation, management effectiveness, dividends, and efficiency, but some of the data is missing or inaccurate (70%) Does not provide data for any of the required ratios in the categories of profitability, financial strength, valuation, management effectiveness, dividends and efficiency (0%) 10 Industry Ratios Provides accurate data for all the industry ratios in the categories of profitability, financial strength, valuation, management effectiveness, dividends, and efficiency (100%) Provides data for the industry ratios in the categories of profitability, financial strength, valuation, management effectiveness, dividends, and efficiency, but some of the ratios are missing or inaccurate (70%) Does not provide data for any of the industry ratios in the categories of profitability, financial strength, valuation, management effectiveness, dividends and efficiency (0%) 10 Ratio Analysis Provides a detailed analysis for each ratio that demonstrates a keen understanding of each company’s position when they are compared to each other and the industry (100%) Provides a detailed analysis for each ratio that demonstrates an accurate understanding of each company’s position when they are compared to each other and the industry (90%) Provides an analysis for each ratio, but the analysis is incomplete or demonstrates an inaccurate understanding of each company’s position when they are compared to each other and the industry, or lacks detail (70%) Does not provide a ratio analysis (0%) 35 Summary Provides an accurate and complete definition of ratio analysis, as well as a through and particularly cogent and detailed explanation of which company they would invest in and why that choice is supported by the financial data (100%) Provides an accurate and complete definition of ratio analysis, as well as a complete, appropriate, and detailed explanation of which company they would invest in and why that choice is supported by the financial data (90%) Provides a definition of ratio analysis and an explanation of which investment they would choose and why, but the definition is inaccurate or incomplete, or the explanation of which investment they would choose and why is incomplete or inaccurate and not supported by the financial data, or submission lacks detail (70%) Does not provide a definition of financial analysis or a selected investment and explanation (0%) 35 Articulation of Response Submission is free of errors related to citations, grammar, spelling, syntax, and organization and is presented in a professional and easy-to-read format (100%) Submission has no major errors related to citations, grammar, spelling, syntax, or organization (90%) Submission has major errors related to citations, grammar, spelling, syntax, or organization that negatively impact readability and articulation of main ideas (70%) Submission has critical errors related to citations, grammar, spelling, syntax, or organization that prevent understanding of ideas (0%) 10