Posted: February 9th, 2016
Assignment 1: Annual Report Review
A critical financial accounting skill is the ability to read, analyze, and to make actionable determinations from any financial statement. Business leaders gain valuable information from the analysis of their financial statements, the competitors’ financial statements, and comparison to industry averages.
The Situation
You are the CFO of an up-and-coming athletic company, which desires to someday become the #1 athletic company in the world. Strategically, the company uses Nike and Under Armour as their key competitor benchmarks. Your CEO is a big believer in learning from the competition and is requesting two things from you regarding Nike and Under Armour’s most recent annual reports.
Part One: The Executive Summary
No more than 2 pages (can include an appendix with additional graphs, charts, and tables).
1) Competitor Strategies
• Identify and explain one key strategy from each company that the company explicitly
discussed in the annual report.
interest, other, and taxes) as a percentage of net sales to identify reasons for better net income margins. Identify and comment on the differences you see. You may not know why a particular cost item like COGS is higher or lower, but your CEO only seems interested in knowing which cost structure items are higher or lower for each company.
3) Inventory Management
4) Cash is King
5) Liquidity
respective 3-year trends?
bankrupt soon? Explain.
Part Two: The Video Presentation and PowerPoint – 5 minute maximum
1) Create a PowerPoint Deck
I will do the video myself, just need the powerpoint and notes.
Place an order in 3 easy steps. Takes less than 5 mins.