7-pages (1925 Words)
INSTRUCTIONS
Company project analysis: Using the analytical tools each of you will learn, each person will prepare an analysis of a public company. The company will be evaluated from the perspective of both fixed income securities (e.g., would you buy the bonds in the medium to long-term?) and equity securities (e.g., would you buy or sell the stock in the medium to long-term?).
Current state of the financial health of the company
Trends in the financial health over recent years and potentially into the future
Comparison of the subject company with competitors and/or industry sector
Analysis of the subject company’s industry sectorRelative strengths or weaknesses
.
Factors affecting the industry such as product, technical innovation, regulation, economic cycles, etc.
Assessing the company’s position within the industry contextIs it a leader?
Does it have a clear advantage vis a vis other industry participants?
Is it subject to extreme competition or pricing pressure?
The company chosen is at your discretion, but should not be so complex or one for which the information is not readily available that makes it more difficult than necessary.
Students should pick a subject company outside his/her usual frame of reference.
For example, if a student is employed in the technology sector, he/she should choose a company in another industry, such as foo
Tyson Foods is an American food company that sells diverse food products including beef, pork, and chicken. Since its establishment in 1931 as a family business, Tyson Foods has continued to grow over the years to become one of the leading public companies in the food industry (Tyson Foods Company, 2021). The company has operations both locally and internationally, whereby it operates diverse brands under its wings including Hillshire farm, Wright brand, Jimmy Dean, and Ball Park. The company has exhibited success through its constant growing profit and revenue amid the raging Covid-19, whereby it was ranked position 79 in the Fortune 500 list. Kuhn et al. (2018) attribute the success of Tyson Foods to its ability to align with the interest of the customers, therefore posing as a strong force against its competitors such as Sanderson Farms, Perdue Farms, Conagra Brands, Pilgrim Pride, and Golden State Foods.
The financial health of the company can be determined by examining using financial ratios. The financial position of a company is critical in the future success of the company because it influences the decision of the investors. Based on the 2019 balance sheet of Tyson Foods, its assets amount to US$ 33.097 billion, with total equity of US$ 14.226 billion, and a total liability amounting to $18,824 billion (United States Securities And Exchange Commission, 2019). Given that Tyson Food has more assets as compared to its liabilities, it means that solvent; meaning that it is well poised to meet its long-term debt.
The financial health of the company can be determined by examining using financial ratios. The financial position of a company is critical in the future success of the company because it influences the decision of the investors. Based on the 2019 balance sheet of Tyson Foods, its assets amount to US$ 33.097 billion, with total equity of US$ 14.226 billion, and a total liability amounting to $18,824 billion (United States Securities And Exchange Commission, 2019). Given that Tyson Food has more assets as compared to its liabilities, it means that solvent; meaning that it is well poised to meet its long-term debt. The debt-equity ratio is another important aspect that can help to determine the financial health of a company. According to a record by the United States Securities and Exchange Commission (2019), Tyson Foods Company has a debt-equity ratio of 0.8, meaning that in every $1 equity 0.8 was debt. However, in 2020, the debt-equity ratio reduced to 0.7, meaning growth in performance. A reduction in the debt-equity 2020 means that Tyson Foods had reduced its debt financing, therefore in a strong financial position.............................
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