Evaluation of Corporate Performance – MICROCHIP TECHNOLOGY (MCHP)
For the Paper, you will apply the concepts learned in class to an analysis of a company (Microchip Technology, MCHP) using data from its annual report. Using the concepts from this course, you will analyze the strengths and weaknesses of the company. You will then write a report either recommending or not recommending purchase of the company stock.
Research Tip: The Mergent database contains company profiles and financial information for publicly traded companies and their competitors. For help with reading an annual report access this handy guide from Money Chimp.
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% 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:
- Financial leverage
- Asset management
- Market value
- Calculate return on equity (ROE) using the DuPont system.
- Calculate economic value added.
- A synopsis of your findings, including your recommendations and rationale for whether or not to purchase stock from this company.
This report should be eight pages long excluding title page and reference page(s). Use APA 6th edition formatting guidelines. Support your findings and recommendations with evidence from at least five scholarly resources; such as the textbook, industry reports, and articles.
- Must be eight double-spaced pages in length and formatted according to APA style as outlined in the approved APA style guide.
- Must include a cover page that includes:
- Title of paper
- Student’s name
- Course name and number
- Instructor’s name
- Date submitted
- Must include an introductory paragraph with a succinct thesis statement.
- Must address the topic of the paper with critical thought.
- Must conclude with a restatement of the thesis and a conclusion paragraph.
- Must use at least five scholarly resources (textbooks, articles, scholarly reviews, etc.)
- Must document and CITE all sources in APA style, as outlined in the approved APA style guide.
- Must include a separate reference page, formatted according to APA style