DISCLAIMER:Under downloads I have included a file called Pfizer, Inc (Fall 2020) (1).pptx. This is only an EXAMPLE of a SIMILAR project. This might be helpful in preparing your presentation. However, it is NOT the exact same. You SHOULD read all guidelines for THIS actual project below.
Netflix will be the project company. On the Blackboard semester project page, I have posted the related financial statements and other supporting financial schedules and formats that you can use to prepare your financial analysis presentation.
For the financial reporting project, you will perform an analysis of the financial statements of a U.S. public corporation.
Please note that you will prepare this analysis in the form of a PowerPoint presentation, i.e. you want to prepare in a form that would support a “face-to-face” presentation in which you are discussing your observations to an audience.
Additionally, your perspective should be as a “neutral” analyst, not as an employee of the company.
For this project, you will use the company’s 10k/annual report and other supporting schedules, to offer analysis and observations about the company’s financial health, financial performance, and ability to generate and use its cash flows effectively.
In your analysis, you will:
1. Give a short description of the company and its business;
2. Prepare a horizontal analysis and a vertical analysis of the company’s Income Statement;
3. Analyze the company’s cash flow statement;
4. Analyze the company’s key financial ratios; and
5. Provide a summary of your observations.
Schedules and formats are provided for your analysis, as discussed below.
Part 1 – The Business
Using the 10K/annual report and the Factiva On-line financial database, which is available through the Hofstra Axinn Library portal, prepare a short description of the company’s business. The discussion of the business is provided in Item 1 of the company’s 10K/annual report.
(Note: The Factiva On-line financial information database is available via Hofstra’s Axinn Library on-line site. On Blackboard or during one of our class meetings, I will show how you can access the database via Hofstra’s portal.)
Your “business” description should be brief, 5 paragraphs or fewer and no more than 5 PowerPoint slides. It should include:
- A description of the company’s business;
- Its mission statement, if available;
- Sources of revenue (for this, you should post a “picture” or chart of the company’s revenues by business segments. This schedule is in the company’s 10k/annual report);
- Senior corporate officers, Chairman and Chief Executive Officer, President, and Chief Financial Officer.
- A schedule discussing some of the most recent significant business issues faced by the company. By recent, I mean that the issues should have a current year impact and should not have occurred or been reported before December 31, 2019. Obviously, you’ll find such issues in independent business news reports and research from business newspapers, business journals and related business-focused on-line media reports. These observations:
Part 2 – Income Statement Analysis
Two Excel spreadsheet formats are posted on Blackboard on which you will prepare a horizontal and vertical analysis of the company’s Income Statement, only.
After completing your horizontal and vertical analyses, briefly summarize your observations about changes, i.e. financial trends, in the following Income Statement line items for each schedule:
1. Net sales,
2. Operating income, and
3. Net earnings attributable to Procter & Gamble
For these comments, you are to discuss, briefly, the horizontal analysis trend and the vertical analysis trend, not the absolute amounts.
Part 3 – Cash Flow Analysis
Using the company’s cash flow statement, prepare the necessary schedules to assess the company’s ability to generate cash and use/invest generated cash. A schedule has been posted with the format for this analysis. That schedule also explains what you should discuss.
Part 4- Ratio Analysis
In the provided material, you will have an Excel schedule detailing the company’s key financial ratios for most recent 3-years available and a series of blank PowerPoint formats for analyzing the key financial ratios.
Using the detailed Excel schedule with the key financial ratios, complete the PowerPoint ratio analysis schedules and provide analysis of:
- The 3-year performance trend of these ratios and
- The company’s performance for each ratio compared to that of its competitor. For this comparison, you only need to compare your project company’s most recent ratio to the related ratio provided for its competitor, i.e. you do not need to download and analyze the competitor’s 3-year trend.
(I will include the required ratios for this analysis)
Part 5- Financial Summary
A brief summary of your observations about the company, including:
- An overview of the business
- Summary of the observations from your Income Statement analysis
- Summary of the observations from your Cash flow analysis, and
- Summary of the observations from your Ratio analysis by major category, i.e. Profitability, Liquidity, Asset Management, and Solvency.
This financial summary should focus on overall observations from your work and should not exceed 5 slides.
Part 6- References
List and briefly describe the source of that information used in preparing your presentation including a link to the related website, if applicable. When including a website reference, you should also provide a brief description of the related site. Also, where applicable, list the titles and dates of journal or newspaper articles used.
Attached is a link to the Neflix investor services website. This is a great starting page for information about the company, particularly from the viewpoint of an investor or interested investor.
This is a link to the Investor Relations pages that Netflix posts on YouTube. These videos present discussions and interviews curated by Netflix for presentation to their investors, lenders, and potential investors and lenders.
IMPORTANT!!! READ AND FOLLOW THESE TEMPLATES AS ADVISED
Netflix, Inc. – Selected Financial Statements- Attached is a Word file containing Netflix, Inc.’s selected financial statements, including the management representation report and the reports of the independent public accounting firm.
- NetFlix Proxy Report (for fye 2019) (9.941 MB)
- Netflix Corp Summary Compensation Schedule (fye 2019) (203.582 KB)
Attached is the corporation’s proxy report to its shareholders. The report is issued to shareholders before the annual meeting between the company and it shareholders. Included with this report is a detailed analysis of the compensation paid to the 5 most highly compensated executives and detail on remuneration paid to the corporation’s Board of Directors.
Attached, as a separate file is Pfizer, Inc.’s executive compensation table for its 5-highest paid executive employees:
Neflix, Inc. – Key Financial RatiosAttached Files:
- Financial Ratios – NFLX.xlsx (25.043 KB)
Attached are the key financial ratios for NetflixFor your semester project, use these attached ratios. Fyi, the ratios were taken from the S&P NetAdvantage Database, which is available on the Hofstra Axinn Library on-line page.
Competitor’s Key Financial Ratios (Walt Disney Company)Attached Files:
- Financial Ratios – Disney (24.485 KB)
Attached are the key financial ratios for Netflix’s competitor (Disney) which you will use for Netflix analysis. The only missing ratio is Earnings per share – diluted, which you have to obtain from the most recently issued annual report of the Walt Disney Company’s Income Statement. You can obtain Disney’s financial statements from their website, see the Investor Relations pages or the Factiva or S&P Net Advantage data base, either of which is available on the Hofstra Axinn Library website.
- Netflix Inc – Income Statement (Vertical and Horizontal Analysis) (31.113 KB)
The attached schedule is to be used for preparing your horizontal and vertical analysis of the Consolidated Income Statement.
- Format – Ratio Analysis (blank) (58.525 KB)
Attached are the blank PowerPoint formats for the ratio analysis. Whether you use the attached schedules for your project or prepare your own, please format your schedules similar to the attached.
- Cash Flow Analysis – Blank Format.docx (17.94 KB)
Attached is a Word file containing the format for your cash flow analysis for your semester project.
You can complete the format in Word and “cut-and-paste” it into your final presentation or you can set-up the formats in Excel and perform your analysis on the Excel file. I will accept either approach.
However, you should not submit your final version of this schedule in Word format.