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] |
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(Next Fiscal Year) Year End: MM/DD/YYYY |
(Most Recent Fiscal Year) Year |
Total |
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Total |
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Operating |
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Income |
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Net |
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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 10 Points |
There is little evidence of financial |
Financial components covered in |
Financial components covered in |
Financial components covered in |
Financial 15 Points |
Financial analysis is either not |
There is some financial analysis |
The financial analyses provided in |
Financial analysis provided in the |
Recommendations 15 Points |
There is little or no assessments of |
Assessments of financial health and |
Assessments of financial health and |
Assessments of financial health and |
Grammar, 10 points |
The report lacks professionalism. |
The report lacks a clean and |
The report is professionally |
The report is professionally presented. |
Case Study Project Tips
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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!