Wk 4 Summative Assessment: Financial Market Shareholder Analysis
A company’s financial reports are used for a variety of reasons, including determining how the company is doing in the financial market. You decide to evaluate the effects of economic and market conditions on your company’s financial performance. Completing this exercise provides you with financial market research to present to your management team to inspire new KPIs and policies.
Using the PowerPoint template above, address the following:
- Evaluate economic conditions that influence company performance in general. Discuss the following five economic conditions: political, environmental, currency (money), global economics, and government influences. This is a general discussion and is not specific to Apple, but applies to any company. So, define the term and provide examples as to their affect on company performance. You need FIVE paragraphs for this discussion.
- Compare market conditions from the previous year with the company’s performance for that same year. Conclude how the market conditions that year influenced the company’s performance, such as interest rates, Federal Reserve Bank monetary policy changes, or other market conditions relevant to the company you selected. This is simply a “write-up” from your Week 3 prep assignment. Make sure to use complete sentences in paragraph form comparing the Fed Monetary Policy and how it affected Apple in 2021. Make sure you take into account any grading feedback provided to you.
- Analyze year-over-year performance from the past two years. Consider key metrics or ratios such as PE, price to book, return on assets, and return on equity in your conclusions. You must use Macrotrends for these figures as there are points for accuracy. Provide a discussion as to the year over year comparison. For each ratio: (1) define what the ratio measures, (2) state the 2020 & 2021 figures (use 09/30/20 & 09/30/21 dates), and (3) discuss the % change and what it implies for Apple. You need FOUR paragraphs for this discussion, one for each ratio. Links are as follows: Apple PE Ratio, Apple Price to Book Ratio, Apple ROA Ratio, and Apple ROE Ratio.