Final Project: Whether or not to invest in Netflix

Instructions:

It is required that your company (Netflix) is on Fortune’s list of “Top 100 companies to work for”. You will be required to
submit a final written assessment report of the company you have been assigned. The report must be 5-10 pages. Your goal is to recommend or not recommend investing in the company. Support you reasons for either recommending or not recommending investing in this company by performing financial statement analysis, ratio analysis
, and other contributing market factors

Details:

FORMAT: All summaries and written assessments must be type-written using MS Word or comparable software, no more than double-spaced with margins of no more than one inch.

COVER PAGE: including the company (Netflix) Logo and the name of the student.Final Company Report (80 points)

 Provide the
company financials
as an appendix at the back of your report, i.e. a copy of their
most recent financials (Income Statement, Balance Sheet, and Statement of Cash Flows)
available in their annual report or their 10K. To find the financial statements of your
company, go to their website, click on Investor Relations (or similar link), and download the
most recent Annual Report or 10K.
 Include in your report
ratio analysis. Use the Glossary to help you find where a particular ratio
has been discussed in the text.
1.
Liquidity and Efficiency – ALL RATIOS are in Chapter 13 in your textbook or e-boo\
a. Current ratio b. Acid-test ratio c. Inventory turnover e. Total asset turnover
2.
Solvency
a. Debt ratio b. Equity ratio c. Debt-to-equity ratio
3.
Profitability
a. Profit margin ratio b. Gross margin ratio c. Return on total assets d. Return
on common stockholders’ equity f. Basic earnings per share
4.
Market Prospects
a. Price-earnings ratio b. Dividend yield

ANALYSIS:

1. Identify what you believe to be the three strongest aspects of the corporation. These aspectsare not necessarily financial in nature; they could refer to the company’s competition,product, etc. Do you believe the corporation will be able to maintain these strengths over thenext few years? Why or why not?

2. Identify what you believe to be the three weakest aspects of the corporation. As in question#2, these are not necessarily financial in nature; they could refer to the company’scompetition, product, etc. In what way might these weaknesses be overcome?

3. Are you optimistic or pessimistic concerning the future of the corporation? Are there specificCorporate or industry characteristics influence your opinion? This question may requireresearch to order to identify some of the characteristics that the company is facing withrespect to its industry. Be sure to cite your sources.

4. SWOT Analysis – Strengths, Weaknesses, Opportunities and Threats

https://en.wikipedia.org/wiki/SWOT_analysishttp://www.quickmba.com/strategy/swot/

– the ratios from above provide a wealth of information; use these to help you

support your analysis
– Current or recent news on the company such as a new product or service, costcutting moves, consolidation or merger with another company that would berelevant to an investor.- General product information including its reputation as a company and/orindustry, the company’s “green” initiatives if any.

Include some factors to consider in your research for SWOT analysis for your company:
-the ratios from above provide a wealth of information; use these to help yousupport your analysis-Current or recent news on the company such as a new product or service, cost
cutting moves, consolidation, or merger with another company that would be
relevant to an investor. -General product information including its reputation as a company and/orindustry, the company’s “green” initiatives if any.

CONCLUSION: State if you will recommend or not recommend investing in the company.

PLEASE INCLUDE A REFERENCE PAGE