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Project:

You are required to obtain complete financial statements of this company for the last 5 years.

Here is the scenario for your term project.  I am the head of a mutual fund company and have asked you to give me your recommendation on if we should add Logitech to our portfolio.  I have asked you to write a report on the company giving me information on their current financial position, their major competition, and where you think the stock will be selling five years from now.  I have also asked you to project the income we will receive during our five year holding period.

To start this project, you are required to pull the last five years financial statements from the SEC (EDGAR web site) and to use these to do your analysis.  After pulling the statements, read the footnotes to the statements and explain what the significant findings are in this area that one should be aware of.

You will prepare a Financial Statement Analysis Report based on these financial statements and other information.

Required:

Based on these financial statements, the company’s background, industry statistics, and other market and company information, prepare a financial statement analysis report covering the following points:

 

• a. Executive summary of the company and its industry.
• b. Detailed evaluation of:
• (1) Short-term liquidity (current debt-paying ability).
• (2) Cash forecasting and pro forma analysis.
• (3) Capital structure and solvency.
• (4) Return on invested capital.
• (5) Asset turnover (utilization).
• (6) Profitability and equity analysis. 

Note: You are expected to use a variety of financial analysis tools in answering (b). Your analysis should yield inferences for each of these six areas.

         c. Comment on the usefulness of the financial statements of this          company for your analysis.

• d. How did accounting principles used in the financial statements affect your analytical measures?
• e. Prepare a forecast of the income statement, balance sheet, and statement of cash flows for a five-year horizon and a terminal year in Year 6.
• f. Estimate the value of your company’s common stock per share using the valuation analysis and procedures described in the Comprehensive Case.

The final analysis should be set up as a research paper with the following sequence:

·                Cover page with your name, course number, your instructor, date, subject, a brief statement that you (and you alone) produced the paper, and a citation for each reference mentioned in your statement.

 

·                Executive Summary (max. ¾ page in Bold)

 

·                Table of Contents

 

·                Introduction

 

·                Body (8 – 12 pages)

 

·                Conclusion and Recommendation(s)

 

·                References  

                                             

 

Resources from:

http://www.sec.gov/cgi-bin/viewer?action=view&cik=1032975&accession_number=0001104659-14-005272&xbrl_type=v# 

 

K. R. Subramanyam, J. J. (2009). Financial Statement Analysis 10th edition. New York: McGraw-Hill/Irwin.