Fluent Essays

Choose one of the two competitors that you explored in your Topic 3 paper. Create an executive summary presentation of the findings on the chosen company from the Topic 3 report (seven to nine slides, exclusive of the title and reference slides) with appropriate speaker notes that could be delivered to a C-suite executive in a corporation. Note that while you should provide comparisons to your companys competitor and the industry averages, the executive summary should focus on a single company from the two competing companies. Consider the feedback from your instructor on the case study report you completed in Topic 3 and include the following in your presentation. A summary of the industry and company chosen. An overview of the chosen companys liquidity ratios relative to the industry averages and to the competitor. An overview of the chosen companys solvency ratios relative to the industry averages and to the competitor. An overview of the chosen companys profitability ratios relative to the industry averages and to the competitor. Describe the importance of the budgeting process in the chosen company relative to these ratios. Prepare a variance report and balanced scorecard for the chosen company, comparative against the competitor company and industry averages for liquidity, solvency, and profitability. Identify which ratios impact capital budgeting decisions and explain how these ratios impact the decisions. A concluding summary of how the chosen company performed compared to the competitor and the industry.   Be sure to cite three to five relevant sources in support of your content. Utilize the GCU Library and external sources for your research. Title slide and reference slide are not included in the slide count. Include speaker notes below each content-related slide that represent what would be said if giving the presentation in person. Expand upon the information included in the slide and do not simply restate it. Ensure that the speaker notes include 50-100 words per slide. Refer to the resource, Creating Effective PowerPoint Presentations, located in the Student Success Center, for additional guidance on completing this assignment in the appropriate style. While APA style is not required for the body of this assignment, solid academic writing is expected, and in-text citations and references should be presented using APA documentation guidelines, which can be found in the APA Style Guide, located in the Student Success Center.3 Benchmark- Interpreting Financial Statements Benchmark- Interpreting Financial Statements Grand Canyon University: BUS- 317 Professor, Byerly Running head: ASSIGNMENT TITLE HERE 1 Benchmark- Interpreting Financial Statements Benchmark – Interpreting Financial Statements Income statements provide companies with a portrait of their financial standings. To determine if their bottom line is negative or positive, a company has to review and compare financial statements over time. I am sure any company would appreciate the chance monopolize their market, but in most cases this is not possible or the case. There is always competition, which can be beneficial to help drive innovation and growth. Competition allows a company to identify areas where they are weak and can drive invention of ideas to overcome those weaknesses. Here we will discuss the financial standing of two competing companies, Wal-Mart and Target, by comparing their income statements. Liquidity Harold Averkamp explains, the evaluation of liquidity is as follows, “To help in evaluating a companys liquidity, the financial ratio known as the quick ratio or acid-test ratio is calculated by dividing the amount of the companys quick assets (cash, temporary investments, and accounts receivable) by the amount of the companys current liabilities (Averkamp, 2021).” When a company is dealing with cash flow problems, looking at the current ratio immediately will provide assistance with understanding the company’s areas of concern. Below are the numbers provided by MSN.com/en-us/money showing Target, Wal-Mart and its current industry. Current Ratio Target Wal-Mart Current Industry Average (Target 1.09 & Wal-Mart 0.98) Current Assets ÷ Current Liabilities 0.89 0.79 1.035 The current ratios shown tell us that with every $1 of current liabilities, Target has $1.09 of current assets and Wal-Mart has $0.98. Lathrop tells us that,” the higher the ratio the greater your cash cushion. If the ratio is 1:1, this means you basically have $1 coming in for every $1 going out, and you’re on the razor’s edge. If the ratio is less than 1:1, you’re in trouble. By right, the ratio should be 1.5: 1 or 2: 1” (Ch. 8). Solvent Solvency is another significant category of step to take when you want to determine a company’s health of finance. Kimmel & Weygandt say that, “Solvency ratios measure the ability of the company to survive over a long period of time. Long-term creditors and stockholders are interested in a company’s long-run solvency, particularly its ability to pay interest as it comes due and to repay the balance of debt at its maturity.” (pg. 385) I discovered two ways to calculate the solvency at MSN.com/en-us/money. Solvency calculation is having the debt to asset ratio. This can also be calculated by using the debt-to-equity. Listed below is the display of the calculations. Figuring this out requires the ratios of total liabiliRubic_Print_Format Course Code Class Code Assignment Title Total Points BUS-317 BUS-317-O500 Benchmark - Executive Summary Presentation 130.0 Criteria Percentage 1: Unsatisfactory (0.00\%) 2: Less than Satisfactory (65.00\%) 3: Satisfactory (75.00\%) 4: Good (85.00\%) 5: Excellent (100.00\%) Comments Points Earned Criteria 100.0\% Summarize the Industry and Company Chosen 9.0\% Summary of the industry and chosen company is not present. Summary of the industry and chosen company is incomplete or incorrect. Summary of the industry and chosen company is included but lacks explanation and relevant supporting details. Summary of the industry and chosen company is included and provides basic explanation and relevant supporting details. Summary of the industry and chosen company is thorough and includes substantial explanation and relevant supporting details. Overview of the Liquidity Ratios of the Chosen Company Relative to the Industry Averages and to the Competitor 10.0\% An overview of the liquidity ratios of the chosen company relative to the industry averages and to the competitor is not present. An overview of the liquidity ratios of the chosen company relative to the industry averages and to the competitor is incomplete or incorrect. An overview of the liquidity ratios of the chosen company relative to the industry averages and to the competitor is incomplete or incorrect. An overview of the liquidity ratios of the chosen company relative to the industry averages and to the competitor is included and provides basic explanation and relevant supporting details. An overview of the liquidity ratios of the chosen company relative to the industry averages and to the competitor is thorough and includes substantial explanation and relevant supporting details. Overview the Solvency Ratios of the Chosen Company Relative to the Industry Averages and to the Competitor 10.0\% An overview of the solvency ratios of the chosen company relative to the industry averages and to the competitor is not present. An overview of the solvency ratios of the chosen company relative to the industry averages and to the competitor is incomplete or incorrect. An overview of the solvency ratios of the chosen company relative to the industry averages and to the competitor is included but lacks explanation and relevant supporting details. An overview of the solvency ratios of the chosen company relative to the industry averages and to the competitor is included and provides basic explanation and relevant supporting details. An overview of the solvency ratios of the chosen company relative to the industry averages and to the competitor is thorough and includes substantial explanation and relevant supporting details. Overview of the Profitability Ratios of the Chosen Company Relative to the Industry Averages and to the Competitor 10.0\% An overview of the profitability ratios of the chosen company relative to the industry averages and to the competitor is not present. An ove