*This is the third part of a project of a comprehensive strategic planning docum

*This is the third part of a project of a comprehensive strategic planning document for NetEase,
The first two parts will be attached if you needed
Part 3: Market &
Financial Analysis
Applying theories and concepts learned
throughout your studies, you will perform a market analysis and a
financial for the organization you have chosen for this project. This analysis will be written in the form of a consultant’s
report, including a title page, table of contents, executive summary, summary of key findings,
Recommendations, headings, citations, references, tables and
charts where applicable, etc. See Appendix
A for the items that should be considered in the Market Analysis.
For
the Financial Analysis, applying the theories and concepts learned throughout
your studies, you will perform a financial analysis for the organization
you have chosen for this project. At the beginning of each of the major sections of the financial
analysis, put the various financial ratios in a table that pertain to that
particular section of analysis. For
example, for the cash assessment section put the figures for working capital,
current ratio, quick ratio, accounts receivable turnover, inventory turnover,
payables turnover, long-term debt/owners’ equity, and cash from operations into
a table at the beginning of this section. Include in the table the figures for
the comparison companies as well.
The
following items that must be considered in the ratio analysis, and well as a
comprehensive discussion about the implications of this data for the company:
Cash assessment:
Working
capital as a percentage of annual revenue
Current
ratio
Quick
ratio
Accounts
receivable turnover
Inventory
turnover
Payables
turnover
Long-term
debt/Owners’ equity
Cash
from operations
Profitability assessment:
ROE
ROA
Profit
margins
Asset
turnover
Total
assets / owner’s equity
EPS
Gross
profit margin
Operating
income margin
Income
before tax margin
Basically, for each ratio, 1) briefly describe
what the ratio means, 2) explain any trends that you have noticed in the
company’s financial ratios over the past 3 years, 3) explain how well the
company is doing with the ratios compared to industry averages, and 4) explain
what the company needs to do if they are underperforming with a given ratio. It should take approximately one or two
paragraphs per ratio to cover these items.
Calculate the financial ratios for your
company for the last three fiscal years (in this case, likely 2018, 2019 &
2020) to look for the financial trends over the past 3 fiscal years. Look for
both negative and positive trends.
For the industry averages comparison,
calculate the same financial ratios for your company’s top two competitors
from their most recent fiscal year (likely 2020 in this case), then compare
those ratios to your company’s financial results.
The expectation for the
financial analysis is that the students will calculate the ratios themselves.
The students should NOT copy the ratios from any on-line sources. You need to be able to prove to me that you
can actually do this kind of financial analysis.