Students in the CFA Website
Enterprise Performance

Through this project sequence:


  • You analyze the internal operational and financial performance of the firm.
  • In the financial analysis, you prepare financials and calculate and evaluate ratios for the firm and comparatively with other firms in the industry.
  • You develop pro-forma financials to make decisions about undertaking new projects and for introducing new products to the market.
  • In the operational analysis, you analyze cost variances, delivery cycle time, cycle efficiency, quality costs, and throughput time.
  • You evaluate the firm using an in-depth balanced scorecard approach.
  • You analyze and compare multiple companies in an industry to evaluate marketing and management based on financial performance measures relative to the stated strategy of the firm.


Areas of Coverage


Project 3-1:
Two Company Financial Comparison

Select a publicly traded company and prepare a comprehensive financial statement analysis using spreadsheet tools. You prepare and interpret: balance sheet and trends over five years, statement of cash flow and trends for five years, and operating, investing, and financing activities. You evaluate the firm based on financial ratios: liquidity ratios, asset management ratios, debt management ratios, debt ratio, profitability ratios, and market value ratios. You also perform and interpret Du Pont analysis for ROA and ROE, risk/return analysis, weighted average cost of capital, free cash flow, and economic value added calculations. Finally, you present your overall results and analysis in an executive summary format.


Project 3-2:
Financial Decision Making

Perform a comparative financial analysis to make recommendations whether to buy, hold or sell stock in a publicly traded company as part of an investment portfolio. You perform your analysis relative to other firms in the industry by completing an integrative industry analysis as part of your recommendation.


Project 3-3:
Balanced Scorecard

Identify and develop performance measures for a firm in the four areas of financial performance, customer performance, internal business processes, and learning and growth. You prepare a balanced scorecard analysis using at least five measures in each of the four areas to develop performance measures that stakeholders can understand and influence. You prepare an implementation plan based on the results of their analysis.


Project 3-4:
New Product or Service Offering

Prepare an idea for a new product in a new target market, analyzing the value chain for the new offering and identifying how the offering will create value for the target market and for the firm. You develop the marketing mix for the new offering and develop fundamental pro-forma financials for the product or service, using sound assumptions and modeling techniques. Upon completion of your analysis, you make a decision on the new product offering, making recommendations to the firm's leadership.


Project 3-F:
The Auto Industry Integrative Analysis

Analyze five publicly traded firms within one industry, performing financial ratio analysis on the five firms to identify the strongest and weakest firms in the industry. You evaluate the strongest and weakest firms' management, marketing and operations to isolate those factors that separate the two firms in each area. You make recommendations for the weakest firm to move to a position of strength in the industry based on your analysis.