BUS 401 Week 5 Assignment, Evaluation of Corporate Performance
This document will provide an evaluation of the corporate performance of the Netflix Corporation. Included will be an introduction, background information on the company, and a financial statement review. Furthermore, a Pro Forma financial statement will be constructed that adopts a ten percent growth in sales and Cost of Goods Sold (COGS) for the next year. There will also be a performance evaluation by ratio analysis for the last fiscal year. This will measure liquidity, financial leverage, asset management, profitability, and market value of Netflix. Using the DuPont system, the Return on Equity (ROE) for the company will also be calculated. Management performance will be …….by calculating the Economic Value Added (EVA) for the company.
The final portion of the performance evaluation will analyze the security of the company’s financial policies (capital structure, debt, leverage, and dividend policy). In conclusion, recommendations on whether or not to purchase stock from the company will be provided…………….Continued (10 Pages with References)