CTUO Apix Printing Financial Performance Analysis and Comparison

This week you will learn to interpret and analyze hurdle rates, return on equity, and project selection. This knowledge will be applied to the following scenario:

When you arrive at Apix Printing, Inc. the following day, you see the following e-mail from Mary requesting the Week 2 assignment described below. For comparative analysis, it will be useful at this time to do some research. You know that you can obtain the financials of companies within the same sector or Standard Industry Code as Apix Printing (e.g., commercial printing), and that the North American Industry Classification System (NAICS) Standard Industry 2012 code for Apix Printing is presently 323111. Use Hoover’s Pro to search for two other companies in the same industry as Apix Printing.

Week 2 Individual Project assignment:

In anticipation of Mary’s request for comparative analysis, it will be useful at this time to do some research. You know that you can obtain the financials of companies within the same sector or Standard Industry Code as Apix Printing (e.g., commercial printing), and that the North American Industry Classification System (NAICS) Standard Industry 2012 code for Apix Printing is presently 323111. Use the FINC615 Library Guide to search for two other companies in the same industry as Apix Printing.

When you get to work the next day, you see the following e-mail from Mary:

Here is the list of financial ratios you asked for. I need you to explain the computation of each and compute these for Apix’s results for the financial statements you are using for the PowerPoint presentation. Also, compare Apix’s 2-year trend results to that of two other firms in the sector. Indicate how each of Apix’s ratios differ, and indicate whether the two other companies’ ratios or Apix’s ratios are indicative of better performance.

Explain the computation for each of the following, and compute each for Apix and two other companies in the same industry as Apix Printing:

• Current ratio
• (Long-term) debt to equity ratio
• Gross margin percentage
• Net profit margin percentage
• Return on equity percentage

Present your findings of the above data in a table. Add a paragraph that summarizes your results, indicating whether investors would find the financial analysis results of Apix competitive as compared to rivals in the sector. Be sure to include both positive and negative trends in your analysis.

Mary’s email says: “Here is the list of financial ratios you asked for. I need you to explain the computation of each and compute these for Apix’s results for the financial statements you are using for the PowerPoint presentation. Also, compare Apix’s 2-year trend results to that of two other firms in the sector. Explain the computation for the Current ratio, (Long-term) debt to equity ratio, Gross margin percentage, Net profit margin percentage, Return on equity percentage. Indicate how each of Apix’s ratios differ, and indicate whether the two other companies’ ratios or Apix’s ratios are indicative of better performance.”

• Individual Project assignment due Wednesday
• Submit a Table with the ratio calculations for 2 years of Apix and 2 competitors
• and a 400 word minimum analysis of how each of Apix’s ratios differ, and indicate whether the two other companies’ ratios or Apix’s ratios are indicative of better performance.

ATTACHMENTS