Skip to main content

An evaluation of John Deere's financial performance for the last three years.

---- FINANCIAL RESEARCH PROJECT -------
Company for analysis: John Deere
SITUATION
You are a financial analyst with the mythical High Technology Corporation ("HTC"). HTC is an established manufacturer of a line of electronic components for industrial-use machinery, which services an international market.  A competitive technical and economic product evaluation has determined that John Deere (a real publicly-traded company) is the best potential candidate for a long-term commitment.  John Deere is offering a competitively favorable deal.  However, based on some serious general and economic concerns about the fallout of companies in the industry in general, the CEO has asked your CFO to conduct a financial analysis of John Deere to determine if it is prudent to commit to this company's product line.  The cost of cutting over to the new product line is significant and any interruption in support during the next few years would adversely affect HTC's performance and profit. Specifically, the question is: will a commitment to John Deere be financially viable over the next two to three years?

YOUR SPECIFIC ASSIGNMENT    
Your specific assignment is to research, analyze, and prepare a report for the CFO on the actual financial performance of John Deere for the last three years. In addition to reviewing the traditional financial performance indicators, you are also to review John Deere's past and current stock performance for the last one year. Your report is to consist of three parts:
(1)        An evaluation of John Deere's financial performance for the last three years.
(2)        An evaluation of John Deere's stock performance for the last one year.
(3)        Finally, a specific recommendation, with supporting rationale, as to whether or not John Deere's recent trend in financial and stock performance is of sufficient financial strength to warrant entering into a long-term commitment.
To assist you in your task, the CFO has provided the following general guidance. Since it is recognized that the industry is undergoing a major contraction in selected markets, it is very important to comparatively evaluate John Deere's financial and stock performance trends against its Industry.
You may wish to include all necessary and relevant financial performance and stock information, trends, and projections in supporting your recommendation. These factors may include, financial ratio trends and industry comparatives, capital spending, stock growth, Beta values, credit rating service valuations, bond rating valuations, and management and investment reports - when these documents are available.
REPORT REQUIREMENTS
YOUR SPECIFIC ASSIGNMENT
Research and analyze the following information for John Deere:
·         Annual Balance Sheets for the last three years.
·         The Income Statements for the last three years.
·         Annual reports, 10K or 10Q
·          Industry data 
·         Analysts’ reports on performance
·         Management reports or press releases                                 
Using this information the students have to develop evaluation of the financial performance for John Deere. (Totally 85% of the assignment grade) 
1.    Background and Industry (one short paragraph). 
2.    Select of most significant financial performance results for the company: Compare Revenue, net income, working capital, total assets for the last three years and other results of your choice of the company against the industry or main competitor. Present the table with this information in your report. Write about 1 page of the analysis of these financial performance results. (15% of the project grade)

3.    Find financial ratios for the company and its major competitor in the Internet. Write about 1-2 pages of analysis of the ratio results you received. (15% of the project grade). Compare the ratio results against the industry or main competitor.
4.    Evaluate Return on Equity for the company for the last three years using the DuPont analysis. (10% of the project grade). Compare the company’s results to a major competitor.
5.    Taking the information from the Income statements and the Balance sheets, calculate the company’s return on equity using the DuPont technique for the company for three years. Follow the formulas on pages 437-438 of the textbook. Show your calculation!
6.    Write about 1 page of analysis of the results that you received. Compare the results to main competitor. If the management of the company would like to improve their return on equity, what should the management of these companies do? 
7.    Evaluate other areas of financial analysis: capital spending, stock growth, Beta values, credit rating service valuations (if possible), bond rating valuations (if possible), etc. Make an overall conclusion about financial performance of the company during the last years. Compare the results that you received against the industry or main competitor.  Summarize the results that you received in 1 pages. What are the firm’s financial strengths and weaknesses? (10% of the project grade)
8.    Collect and evaluate the data about stock performance of the assigned company's for the last one year. Compare the results that you received against the industry or main competitor.
9.    Write about 1 page of analysis of the ratio results you received. (20% of the project grade).

10. Develop a specific recommendation, with supporting rationale, as to whether or not the assigned company's recent trend in financial and stock performance is of sufficient financial strength to warrant entering into a long-term commitment. (about 1 page) (15% of the project grade)

Comments

Post a Comment

Popular posts from this blog

Should pit bull terriers be banned in my community

 Discussion Forum: Counterarguments (Should pit bull terriers be banned in my community) You created a question about the topic for your W6 Rough Draft. For this discussion, you will give an answer to that question in the form of a thesis statement. "Dieting Makes People Fat" Main Post: Share your thesis statement with your classmates. Please note: As with last week’s discussion, nothing here is set in stone. Be open to changing everything about your topic, including your position and audience, as you research it and get feedback from your classmates. Topic + Position/Purpose + Supporting Points =Thesis Statement Example: Suppose the question you posed in the Week 5 discussion was something like, “Should pit bull terriers be banned in my community?” After doing some preliminary research, you have concluded that pit bulls, if raised properly, are no more dangerous than other breeds of dogs. Your thesis statement can be something like, “Pitbulls should not be banned
Post a Comment
Read more

CYBER SECURITY and how it can impact today's healthcare system and the future

 Start by reading and following these instructions: Create your Assignment submission and be sure to cite your sources, use APA style as required, and check your spelling. Assignment: Recommendations Document Due Week 6 (100 pts) Main Assignment Recommendations Document The 1250 to 1500-word deliverable for this week is an initial draft of your recommendations. Note that this is a working document and may be modified based on insights gained in module eight and your professor's feedback. This document should contain the following elements: Summary of your problem or opportunity definition A list of possible recommendation alternatives. In this section, you are not yet at the point of suggesting the best set of recommendations but you are trying to be creative and explore all the different ways that the problem or opportunity might best be addressed. The end result here will be a list of alternatives among which you will choose your final recom
Post a Comment
Read more

Do violent video games encourage players to become violent in real life?

 Write an outline for Speech 3, the persuasive belief speech, following the outline guidelines and formatting requirements (Do violent video games encourage players to become violent in real life?).  1000-1200 WORDS https://virtualspeech.com/blog/persuasive-speech-outline-structure-delivery Topics: https://blog.prepscholar.com/good-persuasive-speech-topics Do violent video games encourage players to become violent in real life? https://www.youtube.com/watch?v=YKKWOx43pIY WE HAVE DONE THIS ASSIGNMENT BEFORE, WE CAN ALSO DO IT FOR YOU GET SOLUTION FOR THIS ASSIGNMENT,  Get Impressive Scores in Your Class CLICK HERE TO MAKE YOUR ORDER   on Do violent video games encourage players to become violent in real life? Are You looking for Assignment and Homework Writing help?  We Provide High-Quality Academic Papers at Affordable Rates. No Plagiarism. TO BE RE-WRITTEN FROM THE SCRATCH
Post a Comment
Read more