Analyzing Financial Performance: A Strategic Assessment of Revenue Trends and Profitability

Abstract

MGMT 475.WB1 Fa 22 Exercise: Performance Assessment SECOND CHANCE DATA This exercise uses the data from the Income Statement below. *Note that the order of years can be different across firm’s financial statements – be careful with that. INSTRUCTIONS (same as main assignment): Submission Due no later than 10pm 9/23 – Submit via SAKIA MESSAGES Create an EXCEL spreadsheet for this analysis. Design it simply – include only the data you need for the analysis requested. Create calculated field to show the following: Calculate the percentage change in revenue (net sales) for each year (2017 through 2020). Calculate operating profit margin for each year (2016 through 2020). Using a WORD document, develop your submission memo to show your spreadsheet and address these tasks: Put your name at the top of the sheet. Describe the trend in the firm’s revenue over the years 2017-2020. How does the firm’s ability to create value for its market (i.e. to generate revenues) compare with the overall industry average? Describe the trend in the firm’s profitability over the years. How does the firm’s ability to capture value (i.e. retain profits) compare to the industry average? Overall conclusion: Describe your overall conclusion about the quality of the firm’s strategic choices and execution AND what you would expect their performance to be over the next few years if they do not make any changes. At the bottom: ** Copy and paste your EXCEL spreadsheet into the document.