solved Main company: Amazoncomparable company 1: ebaycomparable company 2: Alibaba group

Main company: Amazoncomparable company 1: ebaycomparable company 2: Alibaba group Use these three companies to write the final report. Final report questions are attached in file. There is one example report (grade A+) and excel report. Please check and read before writing this paper. For this report, I need a word file, word count at least 7800, and one Excel file with calculations. Here is report questions. All Excel information must choose from this website: https://www.morningstar.com/Your Report consists of four parts:Part 1: BackgroundPart 2: Financial Analysis including your spreadsheet ratiosPart 3: Managerial ActionsPart 4: Investors’ DecisionsPart 1: Background of your company (20 points each)1. Brief business description:-What does your company do? Which industry/industries?-What are the main activities through which your company generates revenue?-You should read the company’s most recent annual report, and provide a pie chart on the percentage of revenue coming from various business units/products, and a similar pie chart on various geographic areas where revenue is generated.Note: you should be able to find all the information above on the company’s most recent annual report.Type your answers starting from here:2. Competition: Briefly discuss the two competitors that you will analyze in the next section. Comment on your company’s competitive advantage, focus on what your company does better than its competitors, and how long you think the company will keep the competitive advantage (core competence). Or if your company is not doing better than its competitors, discuss the situation and whether you see the potential for your company to improve.Type your answers starting from here: Part 2: Financial Analysis (10 points each)Please read the requirements and instructions for the ratio analysis:1.You should calculate all the ratios based on our lecture slides from this class. I will check your calculation from the Excel file.-You should NOT look for other formulas from online sources.-You should NOT take the ratios from online sources (including Morning Star) directly.2.List the ratio of your company and your two competitors for the three years, e.g.Your company nameCompetitor 1 nameCompetitor 2 name201820192020201820192020201820192020Current Ratio-Please follow the Sample Report on listing the numbers in your report.3.For each ratio, you are required to:-Discuss what it says about your main company: is it high? is it low? is it just right? Why?-Discuss any trend that you have noticed in your company’s ratios over the past 3 years. If there’s any significant change, you need to do some research and explain why.-Explain how your company is doing compared to its competitors. Explain what the company needs to do if it is underperforming with a given ratio.* Focus on your main company’s ratios and analyses, not the competitors. Competitors’ numbers should be used as a reference.* It should take approximately one or two paragraphs per ratio to cover these items.4.Please note that you do not need to cite your data if they are from financial statements directly.5.If the financial statement numbers and the stock price are in different currencies, you need to do the conversion to make them one currency.-For example, if your financial statement numbers are all in EURO and stock price is in USD, then use EURO in all ratio calculation and convert the stock price from USD to EURO using the historical exchange rate.-Historical exchange rate: if your stock price is on May 30, 2020, then to convert your USD price to EURO, you need the USD/EURO exchange rate for May 30, 2020.6.If the financial statement shows no inventory, you need to (1) check to ensure the company carries no inventory (check from the company’s annual report), then (2) take inventory =$0, inventory period =0. NOT carrying inventory is a company’s decision, and you need to comment on it in the relevant section of the report.7.If the financial statement shows no dividend: you need to (1) check to ensure the company does not pay dividends (check from the company’s annual report), then (2) use dividend =$0, dividend payout ratio =0%, retention ratio = 100%. NOT paying dividends is a company’s decision, and you need to comment on it in the relevant section of the report.1.Short-Term Solvency:1.1 Current and Quick Ratios:1)Current Ratio2)Quick RatioComment on the ratios above and discuss your company’s general ability to pay off its current liabilities.Type your answers starting from here:1.2 Inventory, AR, AP Periods1)Inventory Period2)Account Receivable (A/R) Period (Assuming 100% Sales Are Credit Sale)3)Account Payable (A/P) PeriodComment on the ratios above and discuss your company’s general ability to manage inventory, A/R, and A/P.Type your answers starting from here:1.3 Operating Cycle & Cash Cycle1)Operating Cycle2)Cash CycleComment on your company’s operating cycle and cash cycle.Type your answers starting from here:1.4 Cash Cycle: Discuss at least 3 ways through which your company could reduce its cash cycle. Please discuss in detail action plans to reduce the cash cycle and recognize the possible drawbacks of your suggestion.Type your answers starting from here:1.5 Conservative DIR1)Conservative Defensive Interval Ratio (DIR)Comment on your company’s conservative DIR. Also, compare the conservative DIR with the cash cycle and comment.Type your answers starting from here:1.6 Cash Position: Based on your answers to questions 1.1-1.5, do you think the company is holding too much, too little, or the right amount of cash? Please explain your answers.Type your answers starting from here:2. Long-Term Debt Policy:2.1 Leverage Ratio1)Debt to Asset Ratio2)Equity Multiplier (also called: financial leverage)Comment on the ratios above and discuss your company’s overall financial leverage.Type your answers starting from here:2.1 Interest Coverage Ratio1)Interest Coverage Ratio (also called: times interest earned)Comment on the ratios above and discuss your company’s ability to pay off debt.Type your answers starting from here:2.2 Give advice to the company in terms of its debt policy—should the company reduce its debt, issue more debt, or stay in the current situation, explain your answers in detail.Type your answers starting from here:3. Asset Utilization:3.1 Ratios:1)Total Asset Turnover2)Working Capital (WC) Turnover3)Fixed Asset TurnoverComment on the ratios above and discuss your company’s turnover ratios.Type your answers starting from here:3.2 If you see any problem with the company’s total asset turnover, WC turnover, or fixed asset turnover, identify the problem and suggest two ways through which the company could improve its asset utilization. If you do not see any problem, also suggest two ways through which the company could maintain its current position.Type your answers starting from here: 4. Profitability:4.1 Profit Margin:1)Gross Profit Margin2)Operating Margin3)Net Profit MarginAre the company’s margins changing? Why and what are the underlying business cause—changes in competition, changes in input costs, or poor overhead cost management?Type your answers starting from here:4.2 SG&A:1)SG&A as a proportion of total revenue (list the ratios for your company and its competitors)Is the company managing its overhead and administrative costs well? What are the business activities driving these costs? Are these activities necessary?Type your answers starting from here:4.3 Tax:1)Effective Tax Rate (list the ratios for your company and its competitors)Discuss the company’s tax planning strategies and whether it strategically locates certain operations in tax havens. Is the company’s effective tax rate affected by the US tax cut?Type your answers starting from here:4.4 Based on your discussion above, suggest two ways through which the company can improve its net profit margin, if necessary; or if you think the company’s current net profit margin is fine, you can also suggest two ways specifically to keep or even further increase it.Type your answers starting from here:5. Return on Investment: 5.1 Ratios:1)ROA2)ROEComment on the ratios above and discuss your company’s return on investment.Type your answers starting from here:5.2 DuPont AnalysisList ROE’s three components of your company and its competitors.Suggest two ways through which the company could improve its ROE, if necessary; or if you think the company’s current ROE is fine, you can also suggest two ways specifically to keep it or even further increase it.Type your answers starting from here:6. Dividend Policy6.1 Dividend Payout:1)Earnings per share2)Dividend per share3)Dividend payout ratio (hint: your dividend payout ratio = 0 if dividend =0)Comment on the ratios above and discuss your company’s payout.Type your answers starting from here:6.2 Read the company’s most recent annual report, what does it say regarding its dividend payout policy? Should your company return more or less cash to stockholders?Type your answers starting from here:7. Market Ratios:7.1 Market Ratios:1)P/E2)Price to Sales3)Market to BookComment on the ratios above and discuss your company’s overall market valuation.Type your answers starting from here:7.2 Growth Ratios:1)Sustainable Growth Rate2)PEG RatioComment on the ratios above and discuss your company’s overall growth.Type your answers starting from here:Part 3: Managers’ Perspectives & Actions (20 points each)1. Based on the financial analyses in part 2: from a CEO/CFO’s perspective, summarize your company’s overall strengths and weaknesses in (1) operation, (2) investment, and (3) financing. What is your company’s overall core competence?Type your answers starting from here:2. Based on the financial analyses in part 2: from a CEO/CFO’s perspective, understand the value drivers and various ratios and suggest how your company could increase its value and further its growth. (Hint: you can read Chapter 4 but please apply it to your company specifically)Type your answers starting from here:Part 4: Investors’ Perspectives & Actions for the company (20 points each)1. Creditors’ decision:If you work for a bank and the company approaches you for debt financing:1)Which ratios/numbers in Part 2 are important considerations?2)Will you issue loans to the company? Why?3)If you are not issuing a loan to the company for now, what would need to improve for you to decide to issue loans?Type your answers starting from here:2. Equity Investors’ decision:If you are considering whether or not to invest in the company’s publically traded stocks:which ratios are important considerations? Will you purchase the stock? Why?1)Which ratios/numbers in Part 2 are important considerations?2)Will you invest in the company’s stock? Why?3)If you are not investing in the stock for now, what would need to improve for you to decide to invest?Type your answers starting from here: