Microchip Technology (MCHP) Analysis

Evaluation of Corporate Performance – MICROCHIP
TECHNOLOGY (MCHP)

For the Paper, you will apply the concepts learned in class to an analysis of a
company (Microchip Technology, MCHP) using data from its annual report. Using
the concepts from this course, you will analyze the strengths and weaknesses of
the company. You will then write a report either recommending or not
recommending purchase of the company stock.

Research Tip: The Mergent database contains company profiles and
financial information for publicly traded companies and their
competitors. For help with reading an annual report access this from Money Chimp.

The completed report should include:

An introduction to the company,
including background information.
A complete and thorough
financial statement review.
Pro Forma financial statements
(balance sheet and income statement) for the next fiscal year, assuming a
10% growth rate in sales and cost of goods sold (COGS) for the next year.
Complete ratio analysis for the
last fiscal year using at least two ratios from each of the following
categories:

Liquidity
Financial leverage
Asset management
Profitability
Market value

Calculate return on equity
(ROE) using the DuPont system.
Calculate economic value added.
A synopsis of your findings,
including your recommendations and rationale for whether or not to
purchase stock from this company.

This report should be eight pages long excluding title page and reference
page(s). Use APA 6th edition formatting guidelines. Support your
findings and recommendations with evidence from at least five scholarly
resources; such as the textbook, industry reports, and articles.

Must be eight double-spaced
pages in length and formatted according to APA style as outlined in the
approved APA style guide.
Must include a cover page that
includes:

Title of paper
Student’s name
Course name and number
Instructor’s name
Date submitted

Must include an introductory
paragraph with a succinct thesis statement.
Must address the topic of the
paper with critical thought.
Must conclude with a
restatement of the thesis and a conclusion paragraph.
Must use at least five
scholarly resources (textbooks, articles, scholarly reviews, etc.)
Must document and CITE all
sources in APA style, as outlined in the approved APA style guide.
Must include a separate
reference page, formatted according to APA style