Financial Analysis

4661 WordsSep 7, 201219 Pages
Final Project – Financial Analysis Beatrice Valdez, MBA Student Capella University MBA 6016 Finance and Value Creation [ May 16, 2012 ] Michael Blagg, Professor Table of Contents Executive Summary | | 3 | Historical Financial Statement Analysis: Financial Ratios | | 3-4 | Balance Sheet | | 4-6 | Income Statement | | 6 | Statement of Cash Flows | | 6 | Pro-Forma Financial Statements | | 7 | Balance Sheet Pro-Forma | | 7-8 | Income Statement Pro-Forma | | 9 | Cash Flow Pro-Forma | | 9-10 | Investing Activities | | 11 | Financial Activities | | 11 | Equations of Statements | | 11-12 | Summary of Valuation | | 12-14 | Current and Quick Ratios | | 14-15 | Transparency | | 15-16 |…show more content…
For 2010, the same was used for 2011 amount with 2009 and 2010 average. Urban Outfitter ratios compared to industry ratios were pretty much close with the exception of Receivables Turnover (61.16 vs. 54.24), Accounts Payable Turnover (15.26 vs. 6.43), Operating Profit Margin, 15.62 vs. 6.24), Return on Equity (20.94 vs. 13.11), Net Profit Margin (10.75 vs. 3.77). and Return on Assets (15.92 vs. 7.17). The ratios for Urban Outfitters was significantly larger than the average industry ratios mainly in the profitability section (See Appendix G). Balance Sheet “The purpose of the balance sheet is to report the financial position (amount of assets, liabilities, and stockholders’ equity) of an accounting entity at a particular point in time” (Libby, Libby & Short, 2011). The information on the Balance Sheet will help managers, investors, and lenders to analyze the company’s financial capabilities. The report is only written at the end of the year and does not provide prior financial information. Therefore, the Balance Sheet should also include the other financial reports required to view the company as a whole. The Balance Sheet can also be a useful tool to analyze trends of accounts receivables and payables. The formula for the Balance Sheet is:
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