Overview
Competency 2:
Spartacus, this is what I need you to focus on:
Competency 2 Assessment: For this assessment, you will be reviewing the annual report of your firm from Comp 1 for 2019. There are THREE parts to this assignment.
1-You must discuss the five economic conditions that affect company performance (political, environmental, currency, global economic, & governmental influence). Make sure to include that specific terminology within your discussion. Define the condition and provide an example. This discussion is not company specific. You need a minimum of FIVE paragraphs for this requirement (one for each condition).
2-You must discuss market conditions specific to your firm to include the fed monetary policy for 2019 and its effect on your firm via interest rates, taxes, employment, etc. You must also discuss other market conditions specific to your firm such as pending litigation, regulatory compliance, etc. All of this information can normally be found within the company annual report for that year. For the fed monetary policy, simply do a websearch for; "Fed Monetary Policy 2019". You need a minimum of THREE paragraphs for this requirement (one for the Fed Monetary Policy itself, one for how it affected your firm, and one for other market conditions that affected your firm that year).
3-You need a performance comparison from one year to another as it relates to PE ratio, price to book ratio, return on assets and return on equity. Only review these ratios (do not dicipher between trailing and forward PE as that is irrelevant at this point since we are using 2018 & 2019 figures). Use end of the year figures for 2018 & 2019 (these may differ between firms as not everyone uses a 12/31 year end date). Use www.macrotrends.net to find these figures. There are no calculations required as this site has already done the work for you. PE & PB are under the Price Ratios tab. ROA and ROE are under the Other Ratios tab. Look UNDER the line chart within the Historical Data table for each. Once you have the figures, then give me a discussion as to the year over year comparison. So, (1) define the ratio and what it measures, (2) state the figures and (3) discuss the year over year comparison and what it implies for your firm - tie this back to the definition. Do this for each ratio. You need a minimum of FOUR paragraphs for this requirement (one for each ratio).
Do not waste time on charts, graphs, etc. This is strictly a discussion based requirement. Your outline should be similar to the one below:
- Intro
- Economic Conditions
- Political
- Environmental
- Currency
- Global Economic
- Governmental Influence
- Market Conditions
- FMP for 2019
- Effect of the FMP on your firm
- Other market conditions for your firm
- Performance Comparison
- PE
- PB
- ROA
- ROE
- Conclusion
- References
Let me know if you have any questions. 😊
For your information:
These are the Assignment Directions below, but please focus on the above, which is what I am looking for.
Resources:
- University of Phoenix Library Finance Resources
Continue your work with the company you selected in the Competency 1 Assessment.
Research your company’s financial reports for 2019.
Complete a 3-page FAQ/shareholder analysis.
Evaluate economic conditions that influence company performance. Consider political, environmental, currency (money), global economics, and government influences on economic conditions.
Compare market conditions with the company’s performance for 2019. Conclude how the market conditions that year influenced the company’s performance, such as interest rates, Federal Reserve Bank monetary policy changes, or other market conditions relevant to the company you selected.
Analyze year-over-year performance from 2018 and 2019. Consider key metrics or ratios such as trailing PE ratio, forward PE ratio, price to book, return on assets, and return on equity in your conclusions.
Cite references to support your assignment.