Annual Report Analysis

 

 

A critical financial accounting skill is the ability to read, analyze, and make actionable decisions from any
financial statement. Business leaders gain valuable information from the annual reports of direct
competitors, companies that operate in similar fields, and companies in which they are considering an
investment or partnership.
Instructions
You are the CFO of a family owned beauty care manufacturing firm and are looking to partner with a large
drug retailer to be the exclusive retailer of your product line. Your CEO has narrowed the field down to two
retailers and is requesting your analysis and guidance. She has asked you to do a financial review of recent
results from CVS Health Corp (NYSE: CVS) and Rite Aid Corp (NYSE: RAD). You have decided to
organize your work into TWO components:
Part A: Financial Analysis Snapshot of key data from the annual reports
Part B: Executive Memo and brief Video Presentation of your analysis
Part A: Financial Analysis Snapshot

• Who does a better job managing their inventory (Inventory Days on Hand ratio)?
• What are their respective 3-year trends for Inventory DOH?
• What options could the company consider to improve inventory management?
3. Cash Is King
• How much net cash from operations did each company generate last year?
• Which company has done a better job generating cash from operations?
• In layman’s terms, how is each company spending their cash with respect to reinvestments in
the business, changes in debt, and returning money to shareholders?
4. Liquidity
• How do the companies compare in terms of the current ratio, and what are their respective 3-
year trends?
• Do their current ratios indicate that either of these companies could go bankrupt soon?
Explain.

 

 

Sample Solution

 

Why Instagram isn’t So Bad

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influential article sampleIn an existence where computerized items have increasingly more impact on individuals’ day by day lives, certain product and media items unavoidably become the focal point of the open’s consideration. Also, they become a piece of a person’s way of life. Alongside Facebook, Twitter, and YouTube, which as of now are day by day allies for many individuals, there is one more application that causes discusses and clashing appraisals: Instagram. In spite of the fact that it has numerous adversaries, Instagram is in actuality a valuable program helping individuals build up their inventiveness and find out about culture.

Similarly as with some other advanced item, Instagram can be utilized maladroitly. Billions of exhausting and comparative selfies, little cats, blossoms, “Talk” tennis shoes, and nourishment photographs have become the subject for mock. Be that as it may, what Instagram pundits miss is its utilization among an immense populace of innovative individuals.

For example, numerous celebrated picture takers, whose ability is undisputed, use Instagram to share their photographs taken on their telephones. Such picture takers as Richard Koci Hernandez (@koci), Cory Richards (@coryrichards), Michael O’Neal (@moneal), and Jimmy Chin (@jimmy_chin) are genuine experts. For example, Jimmy Chin and Cory Richards are picture takers for National Geographic. What’s more, there are a lot increasingly proficient picture takers on Instagram. This implies any individual having a cell phone can follow their records, and get day by day top notch pictures. It resembles a direct workshop, direct exercises on photography, and precluding this favorable position from securing Instagram isn’t sensible.

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One of the greatest pluses of Instagram is its versatility. In the 21st century, a cell phone is a thing nearly no one leaves at their home. Considering almost every cell phone has a camera, each time one strolls around the city, one has an instrument to catch the most fascinating and motivating minutes, and what is progressively significant, get passing criticism. “Preferences” are not a really satisfactory appraisal of your inventiveness, yet on the off chance that you are trailed by well known (or skilled) picture takers, and they like your photographs, it tends to be an indication you are moving the correct way.

Instagram has its own focal points for imaginative individuals, yet in addition for organizations. Truth be told, it is an incredible stage for what is called visual showcasing, when you have a capacity to acquaint your items with potential clients legitimately (for example outwardly) in the most appealing way. One can frame an entire feed of advertising pictures, empowering connection and buying (MaximizeSocialBusiness). What’s more, advancing records in Instagram isn’t troublesome, so increasing various devotees and potential clients is certifiably not a serious deal.

Instagram isn’t about preferences, however. There are numerous individuals who post average, or even awful photographs, planning to get more likes; fixation on shooting selfies has formally become a mental issue (CE), and the measure of individuals with terrible preference for photography can be discouraging. Be that as it may, whenever utilized dependably and with a reason, Instagram can be a helpful instrument.

Notwithstanding its disservices, Instagram stays a valuable and fun instrument for both beginner and expert picture takers. It permits average citizens to follow celebrated picture takers and gain from their works. It likewise permits clients to get criticism about their inventiveness. Also, Instagram can be a powerful media stage for organizations, permitting organizations to utilize visual advertising to connect with clients.

References

Herman, Jenn. “The Benefits of Using Instagram for Business.” Maximize Social Business. N.p., 28 Oct. 2013. Web. 11 Sept. 2014.

Martino, Joe. “Researchers Link Selfies to Narcissism, Addiction and Mental Illness.” CollectiveEvolution. N.p., 07 Apr. 2014. Web. 10 Sept. 2014.

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