Marquita Jackson
Dr. Glenn Stephens
Financial Management – FIN 534
March 4, 2014
Abstract
Imagine that you are a financial manager researching investments for your client that aligns with its investment goals. Use the Internet or the Strayer Library to research any U.S. publicly traded company that you may consider as an investment opportunity for your client.
The assignment will cover the following topics:
Rationale for choosing the company for which to invest
Ratio Analysis
Stock price analysis
Recommendations
In this paper, provide a rationale for the U.S. publicly traded company that has been selected, indicating the significant factors driving your decision as a financial manager. Determine the profile of …show more content…
With that being said, Exxon Mobil may not be the best fit for an investor who is looking to make a quick turnaround on their investment. Investors in Exxon Mobil may have the extra funds to allow this money to sit and grow while they invest other money into some quick low risk securities such as bonds (ExxonMobilFamily).
Select any five (5) financial ratios that you have learned about in the text. Analyze the past three (3) years of the company’s financial data, which you may obtain from the company’s financial statements. Determine the company’s financial health: Financial ratios are designed to extract important information that might now be obvious simply from examining a firm’s financial statements. Examples of financial ratios that could be examined are liquidity ratios, asset management ratios, debt management ratios, profitability ratios, and Market Value ratios. Liquidity ratios are ratios that show the relationship of a firm’s cash and other current assets to its current liabilities. Common liquidity ratios include current ratios, quick ratio, and the operating cash flow ratio. Asset management ratios are a set of ratios that measure how effectively a firm is managing its assets. Asset management ratios consist of total assets turnover ratios, fixed assets turnover ratio, days sales outstanding (DSO), and inventory turnover ratio. Debt management ratios measure how much of a company’s operations come from