United parcel service annual report

Overview

Financial analysis involves examining historical data to gain information about the current and future financial health of a company. Financial analysis can be applied in a wide variety of situations to give business managers the information they need to make critical decisions. The ability to understand financial data is essential for any business manager.

The final project for this course is the creation of a financial analysis report. For this assessment, you will provide a financial analysis report for United Parcel Service (UPS) based on the data in the 2017 UPS Annual Report provided. You will be asked to take the topics that you have covered throughout the course and display your mathematical and conceptual mastery of them. You will conduct background calculations and provide managerial analysis for the following topics: time value of money, stock valuation, bond valuation, and capital budgeting.

 Analyze macroeconomic variables that impact corporate financial decision making for ensuring alignment with strategic objectivesPromptUsing the 2017 UPS Annual Report, prepare a financial analysis report for UPS. For your calculations, use the Final Project Excel Workbook which includes tabs specific to each milestone. Be sure to include in your analysis the background calculations and managerial analysis for each of the following topics: time value of money, stock and bond valuation, and capital budgeting. Also, include a discussion of macroeconomic variables that might impact the company’s financial decision making and strategic objectives. Note that while these elements may seem separate and unrelated, together they will present a well-rounded view of the company’s finances with regard to the topics.
Specifically, you must address the critical elements listed below. Most of the critical elements align with a particular course outcome (shown in brackets).

Time Value of Money
Using the Final Project Excel Workbook, calculate the following time value of money figures:
Calculate the present value of the company based on the given interest rate and provided Fee Cash Flows for the years 2015,2016, and 2017.
Suppose the risk of the company changes based on an unanticipated decrease in the Free Cash Flows by 10% annually duringthe years 2015, 2016, and 2017. Recalculate the present value of the company.