Follow all the guidelines write about both Company: Carrefour and Target
Guidelines for analysis assignment 315:
Single space 7 pages require
Title page (Group number and Student name and ID), and references page are not included in the count.
Font: Times new Roman -size 12 – single spaced.
3. Activity analysis (Operating, Financing, and Investing activities)
4. Ratios discussion (calculation to be done separately and attached)
Ratios to be covered
• Acid test
• Cash conversion cycle
• Current ratio
• Quick ratio
Performance ratios (also known as activity ratios) measure a company’s ability to generate sales and derive profit from its resources. Performance ratios are used to measure the relative efficiency of a company based on the use of its assets, leverage, or other such balance sheet items.
• Average collection period/Turnover
• Fixed assets turnover
• Inventory turnover/age of inventory
• Total assets turnover
Cash flow ratios
Cash flow ratios measure how much cash is generated and the safety net that cash provides to the company to finance debt or grow the business. Cash flow ratios provide an additional way of looking at a company’s financial health and performance. Many use the term “cash is king” because it is so vital to the health of an organization.
Common cash flow ratios include the following:
• Cash flow coverage
• Dividend payout ratio
• Free cash flow
• Operating cash flow
Profitability ratios can be thought of as the combination of many of the other more specific ratios to show a more complete picture of a company’s ability to generate profits.
• Return on assets (ROA)
• Return on net assets (RONA)
• Return on equity (ROE)
• Return on investment (ROI) use DUPONT formula
• Debt ratios measure the company’s overall debt load and the mix of equity and debt. Debt ratios give us a look at the company’s leverage situation. Debt ratios can be good, bad, or indifferent, depending on a host of factors including who is asking. For example, a high total debt ratio may be good for stockholders not wanting to dilute their shares but bad for the creditors of the company
• Debt ratio
• Debt to equity
• Interest coverage
Market value ratios
Market value ratios measure how cheap or expensive the company’s stock is based on some measure of profit or value. Market value ratios can assist management or an investor in assessing the market’s opinion of the company’s value. Generally, the higher the market value ratio, the higher the company’s stock price will be because the market thinks growth prospects are good and/or they believe the company to be less risky as an investment.
Common market value ratios include the following:
• Dividend payout ratio
• Dividend yield
• Price to earnings ratio (P/E ratio)
1. Reflection and report to main stakeholders in the U.S.
Attachments (financial statements and
Ratio calculation and financial statements (only the four statements)
Part B – 1-2 pages Font: Times new Roman -size 12 – single spaced.
1. Aim of the research
2. Accruals- definition
Types of accruals
3. Research Question
4. Sample and data
5. Method: Discuss on the regression models
7. Limitation of research