Submit your final project, the comparative analysis paper. Using what you have learned in the course, you will analyze your two publicly traded domestic firms by assessing the broader economic climate and evaluating the working capital of each firm.
The product of the inquiry and analysis you have completed in each of the three milestones will be brought together in your final project, along with critical element IV (Conclusions and Recommendations), as outlined in the Final Project Guidelines and Rubric document: Referring to your evaluation, you will determine which firm is performing better in terms of its short-term financial management. For the firm that is not performing well, you will provide recommendations for performance enhancement and support your recommendations with evidence.
To complete this assignment, review the rubric document.
Specifically, the following critical elements must be addressed:
I. Background: Describe both of the firms and their management, including their strategic objectives. Provide sufficient detail to support the rest of your analysis.
II. Assessment of the Economic Climate
A. Assess the current interest rates for their impacts on short-term financial markets and instruments. Cite specific evidence that supports your conclusions.
B. Assess the current rate of inflation for its impacts on short-term financial markets and instruments. Cite specific evidence that supports your conclusions.
C. Referring to the goal of the Federal Open Market Committee, which is to provide a monetary supply that facilitates constant and moderate expansion of the economy, assess the Federal Reserve’s plans (e.g., the likelihood of changes to monetary policy and/or regulations) for their potential impact on short-term financial markets and instruments. Cite specific evidence that supports your conclusions.
D. Examine the ethical (e.g., regulatory, tax) considerations that impact the industry within which your firms operate as a result of Sarbanes-Oxley. To what extent do these realities impact their core cash flow management? Provide specific examples to illustrate.
III. Evaluation of the Firms
A. Analyze both companies’ cash flow management practices for the last three fiscal years, including cash, accounts receivables, accounts payable, fixed assets, and inventory. Cite specific examples and figures to illustrate.
B. Analyze both companies’ working capital cash flow management practices, including cash, accounts receivables, accounts payables, fixed assets, and inventory. Cite specific examples and figures to illustrate.
C. Evaluate both companies’ liquidity. Cite specific examples and figures that support your evaluation.
D. Calculate both companies’ financial ratios:
1. Activity ratios, including inventory turnover ratios
2. Debt ratios (financial leverage)
3. Profitability and market ratios
E. Using the financial ratio calculations above, identify strengths and weaknesses for each firm, citing specific examples and figures to support your response.
IV. Conclusions and Recommendations: Using your evaluation, determine which firm is better performing in terms of short-term financial management. For the firm that is not performing well, make the following recommendations for performance enhancement, supporting each with evidence:
A. Indicate which forecasting tools should be used, and defend your claims using specific evidence.
B. Propose specific working capital and borrowing options that align to the firm’s strategic objectives.
C. Propose specific financial products that align to the firm’s strategic objectives.
D. Explain how your recommendations appropriately address each of your identified risks.
For additional details, please refer to the rubric document.
I have uploaded the final rubric and my milestone draft 1-3. You need followed the feedback and the rubric to provide a revised and completed final milestone. The each feedback you can check it in the end of each milestone.
Do not only copy my draft and do not make any adjustment, even plagiarism. I will check it by turnitin.