Evaluation of Corporate Performance

The completed report should include:

    • An introduction to the company, including background information.
    • A complete and thorough financial statement review.
    • Pro Forma financial statements (Balance Sheet and Income Statement) for the next fiscal year, assuming a 10 percent growth rate in sales and Cost of Goods Sold (COGS) for the next year.
    • Complete ratio analysis for the last fiscal year using at least two ratios from each of the following categories:
      • Liquidity
      • Financial leverage
      • Asset management
      • Profitability
      • Market value
      • Debt
      • Per-Share
      • Measures of relative value (P/E, P/B)
      • Activity
      • Cash Flow
    • A calculation of Return on Equity (ROE) using the DuPont system.
    • Assessment of management performance by calculating Economic Value Added (EVA).
    • A synopsis of your findings, including your recommendations and rationale for whether or not to purchase stock from this company.
    • Evaluate the financial risks associated with operating internationally. If your chosen company does not operate internationally, evaluate what the financial risks could be if they were to expand internationally.
  • The report needs to be 8 pages and the chosen organization is Caterpillar Inc.
  • Is this feasible?