Case Study Project #1
Point Value: 50 points
Scenario: You are a Senior Financial Analyst at Cocco Consultants, a medium-sized financial consulting firm focused on the sport industry. You have been assigned to develop a report on the financial condition of companies involved in the sports betting and gaming industry. You have been provided with the most recent 10-K annual reports for the following sports betting and gaming industry companies:
· Boyd Gaming Corporation
· Churchill Downs Incorporated
· PENN Entertainment, Inc.
Use the information contained in these 10-K documents to produce a professional report that provides the following information:
1) Summarize each company’s revenue and expenses during its last fiscal year. Report on the main categories of revenues and expenses for each company and assess similarities and differences between companies in terms of how they make money and how they spend money.
2) Calculate the following financial ratios for the two most recent fiscal years for each company:
· Current ratio
· Quick ratio
· Cash ratio
· Total asset turnover ratio
· Average collection period
· Debt ratio
· Net profit margin ratio
· Return on assets ratio
· Return on equity ratio
3) Interpret the meaning of all financial ratios calculated above for each company’s most recent fiscal year only.
4) Assess the current financial health of each company based on your financial ratio calculations. Use appropriate evidence to justify and explain each financial health assessment. Assess each company’s financial health in the following areas:
· Liquidity ratios
· Activity ratios
· Leverage ratios
· Profitability ratios
5) Provide a basic budget forecasting each company’s revenue and expenses for its next fiscal year. Use the following template to develop your budgets for each company:
[Company Name]
(Next Fiscal Year)
Year End: MM/DD/YYYY
(Most Recent Fiscal Year) Year
End: MM/DD/YYYY
Total
Revenues
Total
Operating Expenses
Operating
Income
Income
Tax
Net
Income
Discuss which budgeting approach you utilized to develop each company’s budget for its next fiscal year. Also, provide justification/rationale for your forecasts of revenues and expenses for each company.
GRADING RUBRIC
SPAD 604
Case Study 1
Grading Rubric
Poor
Satisfactory
Good
Excellent
Financial
Components
10 Points
There is little evidence of financial
components covered in learning modules/class discussions throughout the
report. Components included may be only “common sense” and do not provide a
level of detail that demonstrates an understanding of subject matter.
Financial components covered in
learning modules/class discussions are present, but there is little detail
provided and/or financial components provided are not clearly linked to
content within the case study.
Financial components covered in
learning modules/class discussions are present in most sections of the
report. There is some ability to relate relevant financial components to case
study prompts. More detailed explanations of financial components may be
needed.
Financial components covered in
learning modules/class discussions are consistently utilized throughout the
report and explained in a detailed/relevant manner. There is a clear and
consistent ability to relate relevant financial components to case study prompts.
Financial
Analysis
15 Points
Financial analysis is either not
present in the report or completely incorrect. There is no attempt at
interpreting financial ratios and/or no effort given to explaining financial
analysis strategy.
There is some financial analysis
provided in the report, but it is not correct and/or comprehensive. Financial
ratio interpretations are inaccurate. There is a lack of sufficient detail
provided on calculations and summaries of financial information.
The financial analyses provided in
the report are correct and financial ratio interpretations are accurate.
However, the analysis may not be comprehensive and/or may fail to clearly
explain calculations and summaries for all financial information.
Financial analysis provided in the
report is correct, comprehensive, and detailed. Financial ratio
interpretations are accurate. Clear explanations are provided for all
calculations and summaries of financial information.
Recommendations
and Conclusions
15 Points
There is little or no assessments of
financial health provided in the report. Budgeting approach/forecasts are not
explained. No explanations given for conclusions provided in the report.
Assessments of financial health and
rationale for budgeting approach/forecasts are not tied to financial
analysis. Clear explanations are not provided and lack sufficient
detail.
Assessments of financial health and
rationale for budgeting approach/forecasts are tied to financial analysis
fairly well. Explanations are present, but may lack detail, relevance, and/or
connection to class concepts.
Assessments of financial health and
rationale for budgeting approach/forecasts are explained in a
detailed/relevant manner. There is a clear connection to learning
module/class discussion content. There is a clear connection between
financial analyses and recommendations/conclusions.
Grammar,
Writing, and Formatting
10 points
The report lacks professionalism.
There is no effort made to format the report in a professional manner.
Tables/figures may be present but are unreadable. There are substantial
issues with grammar and/or spelling throughout the document.
The report lacks a clean and
consistent format throughout. Different fonts, formats, margins, and/or
document structure is used within different sections of the report.
Tables/figures may be present but are not formatted appropriately. There are
numerous grammar and/or spelling errors throughout the report.
The report is professionally
presented with clean and consistent document formatting throughout. Tables
and figures are present but need improved formatting. There are a few grammar
and/or spelling errors within the report.
The report is professionally presented.
There is clean, consistent formatting throughout. Tables and figures are
presented in a visually appealing manner. Writing is free of grammar and
spelling errors.
Case Study Project Tips
.
Format for Submission
Your Case Study Project should be submitted in a Microsoft Word document using double-spaced, 12-point, Times New Roman font (or something else very basic, like Arial or Calibri) with normal 1” margins.
This document should look like a professional report. That means it should include:
· Cover page
· Table of contents
· Executive summary (1-page max)
· Section Headings and Subsection Headings
· Appropriate grammar, spelling, punctuation, and consistent formatting throughout
o USE SPELL CHECK!!
o Proofread your document 2-3 times before submitting
· Visually appealing formatting for all tables/charts used in the report. This includes:
o Appropriate table/chart titles
o Relevant column headings (for tables)
o Data labels and legend (for charts)
o Readable and meaningful color formats
· Proper APA formatting for in-text citations/references (if needed)
o Note: External references are not required for this project. But, if you do include an in-text citation/reference, use correct APA formatting
Calculating and Interpreting Financial Ratios
I do not need to see your detailed financial ratio calculations. Feel free to use the MS Excel Financial Ratio Calculator workbook that was provided to you or some other program to automate your financial ratio calculations of these ratios.
I do need to see appropriate interpretations of financial ratios and strong explanation/rationale for financial health assessments. This would include using company history, industry competition comparisons, and/or optimal ratio levels within each assessment.
Following instructions and providing all requested information
This is the single largest mistake I see students make on case study projects. Most of the questions in the assignment have multiple components. Make sure you provide all the information requested from you for this project! Make sure you read the case study instructions carefully and confirm that you provided all information that was requested from you!