Parts Portfolio Project

This Portfolio Project has two parts: calculations and a 4- to 6-page essay. While the calculation requirements of this assignment are important, equally important are your discussion and analysis of the quantitative results. You will submit two documents: 1) a spreadsheet containing your horizontal and vertical analysis (and perhaps your ratios) and 2) a word document containing your essay.

Do your assignment on Spirit Airlines and perform an expanded analysis on the financial statements. Please use the most current 10K statements available on www.sec.govhttp://www.sec.gov or annual statements in finance.yahoo.com http://finance.yahoo.com. You will submit both parts separately.

Don't use plagiarized sources. Get Your Custom Essay on
Parts Portfolio Project
Just from $10/Page
Order Essay

Part 1: Please complete the following for your chosen firm in an Excel spreadsheet:

  1. Horizontal and vertical analysis of the Income Statements for the past three years (all yearly balances set as a percentage of total revenues for that year).
  2. Horizontal and vertical analysis of the Balance Sheets for the past three years (all yearly balances set as a percentage of total assets for that year).
  3. Ratio analysis (eight ratios of your choosing) for the past three years PLUS a measurement for the creditworthiness of your firm as measured by Altman’s Z-score.  Note that if you used your chosen firm for our ratio-related discussion posts, then you MUST also present industry-average ratios or current year competitor ratios for your ratio analysis. Comparing your firm’s ratios to a close competitor or an industry-average ratio makes your analysis much more meaningful.

Part 2: The Paper:

  • 4-6 pages in length.
  • Include a proper introduction and conclusion.
  • Include a reference page.
  • Your paper should provide your reader with an overall understanding of the financial health of your chosen firm including the following:
    • Discussion of the ratio analysis results, including rationale for the ratios chosen.
    • Discussion of all horizontal and vertical analysis from above.
    • Discussion of four items from the management discussion of the firm that support the conclusion formed in your discussion of the financial results.

Much of this course has concentrated on learning the financial statements, primarily because there was not an accounting prerequisite. Because of this concentration, you may find this assignment challenging. However, if you understand the financial statements, then the horizontal and vertical analysis should (hopefully) be rather intuitive. For example, if you see sales rise by 20%, then shouldn’t you also see net income rise by 20% or more if the managers are effective at controlling costs?  If you see sales rise by 20% and assets rise by 40%, we have to ask why this is happening. It would appear that assets have risen too far given the sales that are generated from those assets—why did this occur?  You may have to research that type of question and discuss it in your analysis.

The link below demonstrates the completion of vertical and horizontal analysis on Nike using Excel.  Dr. Jill Bale, the course writer, demonstrates the use of Excel equations and discusses some of the issues you may face when working on the spreadsheet for your portfolio project.  If you would like some additional guidance on the spreadsheet requirement of the portfolio project, please watch the video.  Note that the video does not discuss adding the 8 required ratios to your spreadsheet; however, you are required to submit your company ratios on this spreadsheet as well as the vertical/horizontal analysis.  As always, your instructor is available for follow-up questions.

Bale, J. (2013, August 19). Demonstration of Vertical/Horizontal Analysis using Excel [Video file]. Retrieved fromhttp://camrelay1.unl.edu/inbox/jbale2/Nike_Horizontal_and_Vertical_analysis_-_MP4_with_Smart_Player_(Large)_-_20130819_10.10.04AM.html

You’ve had some experience with financial ratios through Discussion Board.  I’d suggest that you start your ratio analysis with the four ratios found in the DuPont equation. If you discover a weakness in one component of the DuPont ratios, then it would make sense to look at ratios that are closely related to the troublesome ratio. For example, if you discover that the asset turnover is declining over time, then take a look at some related ratios such as the inventory turnover rate or the average collection period. If you discover that the equity multiplier is increasing (indicating greater reliance on debt), then look at some related ratios such as the debt ratio or Times Interest Earned. These ratios are discussed in our textbook, even though you may not have been assigned to thoroughly read the chapters.

Order a unique copy of this paper
(550 words)

Approximate price: $22

Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

We value our customers and so we ensure that what we do is 100% original..
With us you are guaranteed of quality work done by our qualified experts.Your information and everything that you do with us is kept completely confidential.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

The Product ordered is guaranteed to be original. Orders are checked by the most advanced anti-plagiarism software in the market to assure that the Product is 100% original. The Company has a zero tolerance policy for plagiarism.

Read more

Free-revision policy

The Free Revision policy is a courtesy service that the Company provides to help ensure Customer’s total satisfaction with the completed Order. To receive free revision the Company requires that the Customer provide the request within fourteen (14) days from the first completion date and within a period of thirty (30) days for dissertations.

Read more

Privacy policy

The Company is committed to protect the privacy of the Customer and it will never resell or share any of Customer’s personal information, including credit card data, with any third party. All the online transactions are processed through the secure and reliable online payment systems.

Read more

Fair-cooperation guarantee

By placing an order with us, you agree to the service we provide. We will endear to do all that it takes to deliver a comprehensive paper as per your requirements. We also count on your cooperation to ensure that we deliver on this mandate.

Read more

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
error: Content is protected !!
Open chat
1
You can contact our live agent via WhatsApp! Via +1 817 953 0426

Feel free to ask questions, clarifications, or discounts available when placing an order.

Order your essay today and save 30% with the discount code STARS