Specifically, your financial analysis and projection report must include the following critical elements:
I. Executive Summary. Clearly and concisely summarize your principal findings, projections, and recommendations with an eye to persuading busy executives
to support your ideas and to read further. [MBA-520-06]
II. Approach. Provide your intended audience with a solid, but brief, sense of the parameters of your analysis and who else you would consult in refining it
further and why. Remember, your goal is to convince readers of the validity of your observations, while recognizing limitations that affect business
decisions. [MBA-520-06]
III. Financial Performance and Health. In this section, you will evaluate the organization’s recent financial performance and current financial health, given its
organizational context. In particular, you must cover:
A. Organizational Context
1. What key features of the organization (e.g., major products or services, customers, location, etc.) help set the boundaries for business
decisions? In other words, what key goods or services does your organization provide, for whom, where, and why? [MBA-520-02]
2. How is the company organized and managed (e.g., by product groups, geographic region, function, etc.)? How does that affect
accounting and financial information and subsequent business decisions? [MBA-520-02]
B. Recent Financial Performance
1. Assess what the organization’s consolidated income statements for the last three years say about its financial performance. Use relevant
indicators, graphs, and spreadsheets to support your narrative. (Include all spreadsheets in an appendix.) For example, what do the
amounts and year-to-year changes in revenue, operating income, net profit or loss, and Earnings Before Interest, Taxes, Depreciation,
and Amortization tell you? Do any items stand out? [MBA-520-01]
2. Assess what the organization’s consolidated cash flow statements for the same time period say about its financial performance. Use
relevant indicators, graphs, and spreadsheets to support your narrative. For example, what do the amounts and year-to-year changes in
cash from operating activities, cash from investing, cash from financing, and total cash flow tell you? Do any items stand out? [MBA-520-
3. Assess the organization’s underlying financial performance. Support your answer with the analysis above and relevant research. For
example, is recent performance substantially affected by unusual events such as a major acquisition or spin-off? Is the business thriving
or struggling in its industry? How do you know? [MBA-520-01]
C. Current Financial Health
1. Assess how the organization is capitalized and what that tells you about its financial health. Support your response with relevant graphs,
spreadsheets, and indicators such as “cash and cash equivalents,” total debt, shareholders’ equity, current ratio, debt/equity ratio, and
Days Sales Outstanding (DSO). For example, does the organization have enough cash for payroll and other bills? Does it have the right mix
of debt versus equity (stock)? How do you know? [MBA-520-01]
2. Does the organization have the right amount of cash and other resources (e.g., key people, technologies, reputation, physical assets, etc.)
to fuel future growth? What does this suggest for business decisions? For example, if it has too much cash, should it pay a large dividend,
repurchase its own shares, or reinvest the excess funds? [MBA-520-02]
3. Assess the financial value of the company using relevant indicators. What does your assessment imply for future business health and
performance? For example, what is the business’s current market value? What is its price-to-earnings ratio? What do these suggest
about investor perceptions of the business’s future? [MBA-520-01]
IV. Success Factors and Risks. Use this section to discuss the factors that may affect current and future performance. Specifically:
A. How do the organization’s financial and strategic priorities affect accounting procedures and business decisions? How might that affect business
success? For example, is management growth-oriented or efficiency-oriented? What is the organization’s approach to risk and short- versus longterm
planning horizons? [MBA-520-03]
B. How might the organization better capitalize on non-financial factors such as market share, reputation, human resources, physical facilities, or
patents? Support your response with relevant research and analysis. [MBA-520-03]
C. What are the most significant internal risks to the company’s financial performance? Give evidence to support your response. For example, is the
company vulnerable to technological changes or cyber-attacks? Loss of high-talent personnel? Production disruptions? [


Leave Comment

Your email address will not be published. Required fields are marked *