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Financial Ratio Analysis – RoyalCustomEssays

Financial Ratio Analysis

Bio-entrepreneurship
November 27, 2018
Caramelo by Sandra Cisneros
November 27, 2018

Financial Ratio Analysis

Introduction and Alignment

In Chapter Five the textbook describes three standard dimensions used to study company performance: (a) economic, (b) accounting, and (c) shareholder.  This description is followed by two more holistic frameworks that may be useful: balanced scorecard and triple bottom line.

Upon completion of this assignment, you should be able to:

  • Interpret financials ratios to determine the health of a company.
  • Evaluate a company’s performance from different dimensions.

Resources

Background Information

In this assignment you will read Chapter 5 of the textbook which addresses how managers evaluate company performance. You will then respond to some discussion questions as part of an online discussion forum. In the reading, three traditional approaches (e.g. economic, accounting and shareholder) are described. As you consider measurements of company performance, please refer to the financial ratios presented in Exhibit 5.1, Comparing Apple and Microsoft: Drivers of Firm Performance, and Table 1 “When and How to Use Financial Measures to Assess Firm Performance” on pp. 522-526.

Instructions

  1. Read and study the following in your textbook:
    1. Chapter 5, addressing how managers evaluate competitive advantage, firm performance, and business models
    2. “Calculating Financial Ratios” as part of a case analysis (pp. 517-518)
    3. The ChapterCase 5 and questions regarding: “The Quest for Competitive Advantage: Apple vs. Microsoft”, (pp.141-142, 144 and 166).
  2. Navigate to the threaded discussion. Use the key financial data provided for. Apple and Microsoft. Then, answer the ChapterCase 5 case study Questions 1 through 3 based on the material presented.
  3. Your initial response should be 400 to 600 words in length, include two academic sources that are properly cited, and is due by the end of the fourth day of the workshop.

Assessment Criteria

Criteria 10 Points  8-9 Points 6-7 Points 0-5 Points
Case Discussion Question 1 You demonstrated clear, insightful critical thinking and provided a discussion of the difficulties in sustaining competitive advantage. You demonstrated competent critical thinking and provided discussion of the difficulties in sustaining competitive advantage. You demonstrated limited critical thinking and provided little discussion of the difficulties in sustaining competitive advantage. You demonstrated little to no critical thinking and provided little to any discussion of the difficulties in sustaining competitive advantage.
Criteria 10 Points 8-9 Points 6-7 Points 0-5 Points
Case Discussion Question 2 You demonstrated clear, insightful critical thinking and provided a detailed explanation of the ways in which Apple or Microsoft displays a competitive advantage. You demonstrated competent critical thinking and provided a basic explanation in conducting a dynamic profitability analysis of the ways in which Apple or Microsoft displays a competitive advantage. You demonstrated limited critical thinking and provided little explanation of the ways in which Apple or Microsoft displays a competitive advantage. You demonstrated little to no critical thinking and provided little to any explanation of the ways in which Apple or Microsoft displays a competitive advantage.
Criteria 10 Points 8-9 Points 6-7 Points 0-5 Points
Case Discussion Question 3 You demonstrated clear, insightful critical thinking and provided detailed insight regarding the changes in strategy at Microsoft. You demonstrated competent critical thinking and provided basic insight regarding the changes in strategy at Microsoft. You demonstrated limited critical thinking and provided little insight regarding the changes in strategy at Microsoft. You demonstrated little to no critical thinking and provided little to any insight regarding the changes in strategy at Microsoft.
Criteria 10 Points 8-9 Points 6-7 Points 0-5 Point
Response to Classmates You demonstrated clear, insightful critical analysis of your classmate’s postings in determining the logic of their arguments, the correctness of their facts, the reasonableness of their interpretations and consistency with the substance and intent of their references. You demonstrated competent critical analysis of your classmate’s postings in determining the logic of their arguments, the correctness of their facts, the reasonableness of their interpretations and consistency with the substance and intent of their references. Your demonstrated limited critical analysis of your classmate’s postings in determining the logic of their arguments, the correctness of their facts, the reasonableness of their interpretations and consistency with the substance and intent of their references. You demonstrated little to no critical analysis of your classmate’s postings in determining the logic of their arguments, the correctness of their facts, the reasonableness of their interpretations and consistency with the substance and intent of their references.
Criteria 10 Points 8-9 Points 6-7 Point 0-5 Points
Grammar, spelling, length, and citation Your sentence structure is complete with correct spelling, punctuation, capitalization, varied diction, and word choices.  Your assignment length is correct with sources correctly cited. Your sentence structure has minor errors (fragments, run-ons) with correct spelling, punctuation, capitalization, and limited diction and word choices.  Your assignment length is correct with correct sources correctly cited. Your sentence structure has several errors in sentence fluency with multiple fragments/run-ons; poor spelling, punctuation, and/or word choice. Your assignment length is inadequate with several format and citation errors. Your sentence structure has serious and persistent errors in sentence fluency, sentence structure, spelling, punctuation, and/or word choice.
Your assignment length is inadequate with several format and citation errors or sources not cited.
Total Points 50

 

 

 

 

 

Questions

  1. Why is it so hard to gain a competitive advantage? Why is it even harder to sustain a competitive advantage?
  2. Looking at the different ways to assess competitive advantage discussed in this chapter, does Apple have a competitive advantage over Microsoft using any of the approaches? Why or why not? In which approach is Microsoft looking “the best”? Explain.
  3. Microsoft’s new CEO, Satya Nadella, has made drastic changes to Microsoft’s strategy. What was Microsoft’s strategy before Nadella was appointed CEO? What is it now under his leadership? Do you agree that Nadella has formulated a promising strategy? Why or why not?

 

 

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