Overview
Discussion - Under Armour's Financial Performance
This discussion is a continuation of last week's assignment about Under Armour with a focus on the financial ratios that are used to analyze corporate performance.
Read the case “Under Armour Under Pressure: Ratio Analysis” in your coursepack. Based on both that case and last week’s Under Armour case, using the information from this week’s lessons and readings submit an initial post documenting the top three financial ratios that, in your opinion, provide the best indications of Under Armour’s financial performance.
Assignment - Financial Analysis of Ocean Park
This assignment will challenge you to look past the financial ratios and determine the underlying causes of the financial condition of Hong Kong’s Ocean Park Amusement Park.
This case investigates the downfall of Ocean Park Corporation (Ocean Park or the park) from the perspective of financial statement analysis. Ocean Park's performance significantly declined from a surplus of HKD127.2mn in FY2013 to a severe deficit of HKD557.3mn in FY2019. This was mainly attributable to the shrinking revenue size and mounting difficulties in controlling the operating costs during this period. In 2020, Ocean Park was hard-hit by the coronavirus pandemic, which pushed it further to the verge of liquidation. After rounds of debates, the Hong Kong legislature eventually approved of a relief fund of HKD5.4bn in taxpayers' money. The case seeks to highlight the financial ratios and metrics commonly used in financial statement analysis, and their interpretations. It provides insights on Ocean Park's financial performance in terms of profitability, liquidity, solvency, and operational efficiency.
For this assignment, read the case “Financial Analysis of Ocean Park” in your coursepack. Using the information provided by the case, this week’s lesson and resources, use the following questions to guide your analysis.
- What are the underlying causes of the financial problems of Ocean Park?
- What are the implications of a government bailout?
- What are the key issues that management must address in order to put the Park back on a path to financial health? A Dupont Analysis (discussed in the case) should be performed and included in your submission. Build that analysis in Excel.
Prepare your submission as follows:
You are a consultant hired by the government of Hong Kong to provide them with a recommendation for action. You are a consultant hired by the government of Hong Kong to provide them with a recommendation for action. You have been asked to offer a 3-5 page summary (excluding title and references pages) that covers the following:
- An identification and analysis of the fundamental problem at Ocean Park.
- At least three alternatives for action.
- A recommended path forward. The government expects this to include a Dupont Analysis in Excel as well as a narrative to support your recommendation.