Even complicated and confusing topics will be easily developed and covered if you request our help writing an essay. Place an order today!

comparative analysis:  Caterpillar Inc. and Deere & Company

You are a financial analyst with HTC Corporation. HTC is an established investment banker which services an international market.  A client  has determined that it wants to invest $2.3 billion in either Deere & Co. or Caterpillar stock (real publicly-traded companies). Which of these companies’ shares is the best potential candidate for a long-term commitment?  Both targeted companies are competitively favorable.  However, based on some serious general and economic concerns about the fallout of companies in the industry in general, the CEO of the client-company has asked your CFO to conduct a financial analysis of both CAT and DE to determine if it is prudent to commit to either company.  The cost of this investment is significant and any interruption in cash flow from the investment during the next few years would adversely affect the client’s performance and profit. The CFO has given you the job of conducting this analysis. Specifically, the question is: will a commitment to invest in either Caterpillar or John Deere be financially viable over the next two to three years?

 

YOUR SPECIFIC ASSIGNMENT

Your specific assignment is to research, analyze, and prepare a report for the CFO on the actual financial performance of both DE and CAT for the most recent three years. In addition to reviewing the traditional financial performance indicators, you are also to review both targed companies past and current stock performance for the last one year. Your report is to consist of three parts:

(1)        An evaluation of financial performance for the last three years, for both companies.

(2)        An evaluation of stock performance for the last one year, for both companies.

(3)        Finally, a specific recommendation, with supporting rationale, as to whether or not either targeted company’s recent trend in financial and stock performance is of sufficient financial strength to warrant entering into a long-term commitment.

To assist you in your task, the CFO has provided the following general guidance. Since it is recognized that the industry is undergoing a major contraction in selected markets, it is very important to comparatively evaluate both CAT and DE relative to financial and stock performance trends against its Industry.

IMPORTANT: You must include all necessary and relevant financial performance and stock information, trends, and projections in supporting your recommendation. These factors must include, financial ratio trends and industry comparatives, capital spending, stock growth, Beta values, credit rating service valuations, bond rating valuations, and management and investment reports – when these documents are available.

REPORT REQUIREMENTS

YOUR SPECIFIC ASSIGNMENT

Research and analyze the following information for both Caterpillar and Deere:

  • Annual Balance Sheets for the last three years.
  • The Income Statements for the last three years.
  • Annual reports, 10K or 10Q
  •  Industry data
  • Analysts’ reports on performance
  • Management reports or press releases

Using this information the students have to develop evaluation of the financial performance for both targeted companies. (Totally 85% of the assignment grade)

  1. Background and Industry (oneshortparagraph).
  2. Select of most significant financial performance results for the companies: Compare Revenue, net income, working capital, total assets for the last three years and other results of your choice of the companies against the industry. Present the table with this information in your report. Write about 1 page of the analysis of these financial performance results. (15% of the project grade)
  3. Find financial ratios for each company and the industry in the Internet. Write about 1-2 pages of analysis of the ratio results you received. (15% of the project grade). Compare the ratio results for each company against the other, and the industry.
  4. Prepare a DuPont analysis for three years. (10% of the project grade). Compare the each company’s results to each other and to the industry.
  5. Taking the information from the Income statements and the Balance sheets, calculate each company’s return on equity using the DuPont technique for the company for three years. Follow general formulas for such analysis. Show and discuss your calculation!
  6. Write about 1 page of analysis of the results that you received. Compare the results. If you think the management of Caterpillar and John Deere would like to improve their return on equity, what should the management of these companies do?
  7. Evaluate other areas of financial analysis: capital spending, stock growth, Beta values, credit rating service valuations (if possible), bond rating valuations (if possible), etc. Make an overall conclusion about financial performance of each company during the last years. Compare the results that you received against each company and the industry.  Summarize the results that you received in 1 pages. What are these firm’s financial strengths and weaknesses? (10% of the project grade)
  8. Collect and evaluate the data about stock performance of these assigned companies for the last one year. Compare the results that you received against the industry.
  9. Write about 1 page of analysis of the ratio results you received. (20% of the project grade).
  10. Develop a specific recommendation, with supporting rationale, as to whether or not the assigned company’s recent trend in financial and stock performance is of sufficient financial strength to warrant entering into a long-term commitment. (about 1 page) (15% of the project grade)
SOURCE: allaplusessays.com
All A+ Essays – PLACE YOUR ORDER HERE: https://allaplusessays.com/order

Havent found the Essay You Want?
We Can Assist
The Paper is Written from Scratch Specifically for You

    WHY allaplusessays.com

  • Confidentiality & Authenticity Guaranteed
  • Plagiarism Free Content Guarantee
  • All A+ Essays Guarantee Timely Delivery of All Papers
  • Quality & Reliability
  • Papers Written from Scratch and to Your Instructions
  • Qualified Writers Only
  • All A+ Essays Allow Direct Contact With Your Writer
  • Using allaplusessays.com Means Keeping Your Personal Information Secure
  • 24/7 Customer Support

GET QUALITY ESSAY HELP AT: https://allaplusessays.com/order

ORDER A PAPER WRITTEN FROM SCRATCH AND TO YOUR EXACT INSTRUCTIONS (allaplusessays.com – For 100% Original Content)

testimonials icon
Assignment 2: Healthcare RegulationsThe Emergency Medical Treatment and Labor Act (EMTALA) is one of the most critical yet misunderstood reg...
testimonials icon
Check out the following website....
testimonials icon
Prepare a 10-15 slide PowerPoint presentation, with speaker notes, that examines the significance of an organization's culture and values. For...
testimonials icon
please be on time...
testimonials icon
Chapter: Chapter 02: The Scientific Study of People1. ________________ is an example of L-data.a) Municipal records of the number of moving violation...
testimonials icon
Running head: SUMMARY ASSIGNMENT AND RHETORICAL ANALYSISSummary Assignment and Rhetorical AnalysisNameInstitution1SUMMARY ASSIGNMENT AND RHETORICAL A...
testimonials icon
piaget identified the sensorimotor period...
testimonials icon
“Curriculum Development” Please respond to the following:...
testimonials icon
Assume that your audit team is responsible for planning the audit for the Woolworths Group for the year ended 30 June 2018. Discuss your strategies...
testimonials icon
I need a speech outline for my presentation. The topic is " What you eat, you become." The outline should start with an introduction that includes,...

Other samples, services and questions:

Calculate Price

When you use PaperHelp, you save one valuable — TIME

You can spend it for more important things than paper writing.

Approx. price
$65
Order a paper. Study better. Sleep tight. Calculate Price!
Created with Sketch.
Calculate Price
Approx. price
$65