Strategic Financial Analysis

COMFORT SYSTEM USA(Company you are working on)

Comfort Systems USA, Inc. provides heating, ventilation and air conditioning installation, maintenance, repair and replacement services within the mechanical services industry. The Company has 38 operating units in 72 cities and 86 locations throughout the United States.

FINANCIAL REPORTS- COMFORT SYSTEM  USA

https://www.annualreports.com/Company/comfort-systems-usa

EMCOR GROUP (Competitor)

EMCOR Group is a company based in Norwalk, Connecticut, USA. Listed on the Fortune 500, EMCOR provides mechanical and electrical construction, industrial and energy infrastructure and facilities services to commercial, industrial, utility and institutional customers. 

FINANCIAL REPORTS- EMCOR GROUP

https://www.annualreports.com/Company/emcor-group

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  • CREATE OR ADD CHARTS SIMILAR TO THOSE IN EXAMPLES(Example 1 and 2-  supporting documents I attached)
  • ADD A MINIMUM OF 8-10 TABLES/CHARTS (average of two or three per section)
  • PROVIDE REFERENCES
  • NO NEED TO CREATE A COVER PAGE/TITLE PAGE
  • POST TABLES AND SUMMARY UNDER THE QUESTION- DOSENT HAVE TO BE IN AN ESSAY FORM
  • PROVIDE A SUMMAR ANSWER FOR ALL QUESTIONS

————————————THANK YOU—————————————

4.3 Financial Analysis

4.3.1 Valuation Analysis

1) List the accounting measures (ratios, values, etc.) that should be used for valuation analysis.

2) Pick several companies you want to compare with Comfort Systems USA. Please consider selecting several from the companies in Section 3.4 (Competition analysis). List the company names here. You will be using this list for all sub-sections in your financial analysis.

USE THIS COMPANY

  • EMCOR GROUP

3) Make several tables (similar to the sample papers) to summarize all accounting measures for valuation analysis.

4) Make your judgement (verdict) about Comfort System USA performance based on your comparison with other companies (including industry average or historical performance).

5) Briefly suggest what action can be taken to improve (if there is any) the Company on this respect.

6) List your references here.

4.3.2 Growth Analysis

1) List the accounting measures (ratios, values, etc.) that should be used for growth analysis.

2) Make several tables (similar to the sample papers) to summarize all accounting measures of Comfort Systems USA, competitors selected, and industry average (if applicable) for growth analysis.

3) Make your judgment (verdict) about Comfort Systems USA performance based on your comparisons.

4) Briefly suggest what action can be taken to improve (if there is any) the Company on this respect.

5) List your references here.

4.3.3 Profitability Analysis

1) List the accounting measures (ratios, values, etc.) that should be used for profitability analysis.

2) Make several tables (similar to our sample papers) to summarize all accounting measures of Comfort Systems USA, competitors selected, and industry average (if applicable) for profitability analysis.

3) Make your judgment (verdict) about Comfort Systems USA performance based on your comparisons.

4) Briefly suggest what action can be taken to improve (if there is any) the Company on this respect.

5) List your references here.

4.3.4 Financial Strength Analysis

1) List the accounting measures (ratios, values, etc.) that should be used for financial strength analysis.

2) Make several tables (similar to our sample papers) to summarize all accounting measures of Comfort Systems USA, competitors selected, and industry average (if applicable) for financial strength analysis.

3) Make your judgment (verdict) about Comfort Systems USA performance based on your comparisons.

4) Briefly suggest what action can be taken to improve (if there is any) the Company on this respect.

5) List your references here.

4.3.5 Management Efficiency Analysis

1) List the accounting measures (ratios, values, etc.) that should be used for management efficiency analysis.

2) Make several tables (similar to our sample papers) to summarize all accounting measures of Comfort Systems USA, competitors selected, and industry average (if applicable) for management efficiency analysis.

3) Make your judgment (verdict) about Comfort Systems USA performance based on your comparisons.

4) Briefly suggest what action can be taken to improve (if there is any) the Company on this respect.

5) List your references here.

4.3.6 Summary of Financial Analysis

Briefly summarize the entire outline

Guidelines (please utilize)

4.3 Financial Analysis

Hints (also for sub-sections):

  1. The sample projects is always an example to look at (despite of the different structure it may have).
  2. You need to compare the Company with the competitor(Emcor Group) in the competition analysis (Section 3.4) and with industry averages for those ratios and numbers throughout the whole Section 4.3.
  3. When you do analysis and make tables, please use longer period of data, for example, 8-10 years’ annual data or longer, because a longer period of data will give us more accurate information about trends and shocks, especially the possible impact of the financial crisis starting from 2008.
  4. From here you can find company’s financial information. Filings to SEC from the Company’s web site; Website of key competitors and their filings to SEC or other authorities; Financials in spreadsheet format are available databases (including Mergent Online and D&B Hoovers).
  5. Make sure the financial data are comparable between companies. If a company you selected for comparison has very different businesses or in different industries, please find financial data for its divisions that are comparable to the Company.  (Many companies do have major financial data divided by division in their filings.)
  6. Don’t copy and paste all the tables. Please just include the data that are relevant to your analysis. A normal mistake is putting many tables on paper with only a few sentences for analysis, which makes this section quite long, but less meaningful and less constructive.
  7. For each of the following sub-sections, you need to give meanings to those numbers, and also offer your “verdict”, i.e., how the Company is doing after you compare it with major competitors, industry average, and its historical performance, and possible solutions to make the Company stronger.
  8. As you will have detailed analysis in sub-sections, just a few bridging paragraphs are needed under this section title.
  9. Length recommendation for Section 4.3 (including all sub-sections): at least ten pages (APA format)

4.3.1 Valuation Analysis

Hints:  

  1. Following the sample reports is a good idea, although they not perfect. You may include the indicators like value of assets, valuation in the market, and stock price changes, and so on.
  2. Comparisons needed to interpret the data and ratios.

4.3.2 Growth Analysis

Hints:

  1. Read the sample reports for the indicators you might include;
  2. Make sure that you compared those indicators of the Company with its past data, industry averages, and those of major competitors.
  3. Make sure you give your “verdict” about the Company’s growth based on the data comparison and trends.

4.3.3 Profitability Analysis

Hints:

  1. Dupont Analysis Model is a nice way to analyze profitability. The following materials give you some information about Dupont analysis (URLs): http://www.cdp.wisc.edu/publications/dupont model.doc. Definitely you can find more by search on Google.com.
  2. Comparisons needed to interpret the data and results.

4.3.4 Financial Strength Analysis

Hint:

  1. Use those financial strength ratios, and compared with industry major competitors, top performers, industry average, and past data.  Our sample reports offer a good example, although it is not perfect. Again, comparisons needed to interpret the data and results.

4.3.5 Management Efficiency Analysis

Hint:

  1. First you need to know what those efficiency measures are.  You can follow the sample reports, although it is not perfect. Again, comparisons needed to interpret the data and results.

4.3.6 Summary of Financial Analysis

Hint:

You should summarize the financial healthiness of Comfort Systems USA based on your analysis by comparing its data to the ideals, its past, and/or the major competitors/industry averages. Find out financial strength and weakness.

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