StudyXY
RegisterLog in

BUS 650 Evaluation of Corporate Performance

Explores corporate performance evaluation techniques and financial analysis methods.

Evelyn Morris
Contributor
4.4
56
5 months ago
Preview (5 of 16 Pages)
100%
Purchase to unlock

Page 1

BUS 650 Evaluation of Corporate Performance - Page 1 preview image

Loading page image...

Running head:Evaluation of Corporate Performance1BUS 650Evaluation of Corporate PerformanceBased on a review of Bridgepoint Education’s financial statements, including the incomestatement, balance sheet, and pro forma projections, analyze the company's financial health overthe past few years. Discuss its liquidity, profitability, and the impact of external factors, such asaccreditation issues, on its financial performance. Additionally, using a 10% growth assumptionin sales and Cost of Goods Sold (COGS), provide a forecast for the next two years. Calculate thereturn on equity (ROE) using the DuPont system, evaluate the company's economic value added(EVA), and assess its financial policies, offering recommendations on the purchase of its stock."Word count requirement: 1,500-2,000 words.

Page 2

BUS 650 Evaluation of Corporate Performance - Page 2 preview image

Loading page image...

Page 3

BUS 650 Evaluation of Corporate Performance - Page 3 preview image

Loading page image...

Evaluation of Corporate Performance: Bridgepoint EducationManagerial FinanceBUS 650

Page 4

BUS 650 Evaluation of Corporate Performance - Page 4 preview image

Loading page image...

Evaluation of Corporate Performance3Thesis statement:In this paper I willreviewBridgepoint educationusing data from its annual report. My reportwill include a review ofBridgepoint Education (BPI)financial statements, balance sheet, incomestatement for the next 2 years assuming growth of 10% in sales and Cost of Goods Sold(COGS)as well as a ratio analysis of its liquidity, financial leverage, asset management, profitability andmarket value. In addition,I will calculate the return on equity(ROE)using the DuPont system,assess the economicvalueadded by assessing management performanceand evaluate thecompany’s financial polices and provide my recommendationson the purchase of companystock.Bridgepoint Education(BPI) whichis currently celebrating its 10 year anniversary wasactually incorporated in May of 1999 under the name TeleUniversity,Inc. The company which isbased out of San Diego, California changed their name to Bridgepoint Education in February2004. Bridgepoint education was founded by Andrew Clark, current CEO along with severalexecutives fromUniversity of Phoenix. Bridgepoint education, whose main business ispostsecondary education, offers Associates,Bachelor’s,Master’sand doctoral programsboth oncampus and online at their institutions,Ashford Universityand Universityof the Rockies.Bridgepoint education prides itself in the usage of technology and a company tag line is“innovative solutions to advance learning”,fits well into their company mission and servicesthey provide. Onlineeducationis a relatively new sector and companies such as Bridgepoint haveexperienced major growth over the past few years. Bridgepoint education competes with severalfor profit postsecondary schools as well as with the localnonprofitstate academic institutionsfor

Page 5

BUS 650 Evaluation of Corporate Performance - Page 5 preview image

Loading page image...

Evaluation of Corporate Performance4potential students.Thefinancials forBridgepointEducationhavefluctuatedgreatly over the pastfew years as have that of most in this sector and belowIwill discuss in detail some of findingsfrom a review of their financials andhow it has affected the company.Financial Statement reviewBridgepoint Education isaserviceprovider of postsecondary education to two academicinstitutions, Ashford University and University of the Rockies(http://ir.bridgepointeducation.com/files/doc_financials/2012/2012%2010-K.pdfretrieved02/24/2014).Based on the data listed on Bridgepoint educations financials, the company haszero debt,low fixed assets and isstructured to operateonanasset light model(http://ir.bridgepointeducation.com/files/doc_financials/2012/2012%2010-K.pdfretrieved02/24/2014).BridgepointEducation position as a service provider of postsecondary educationyields the company ahigh net profit margin and returnon equity.Bridgepoint educationcurrently has zero debt or scheduled liabilities, which provides the company great liquidity and acomfortable current ratio and quick ratio.Accordingto Byrd, J., Hickman, K., & McPherson, M.(2013)current ratioor liquidity ratiois a liquidity measurement of a company’s ability to paytheir short term obligations. The formula for current ratio:Current Ratio=Current AssetsCurrentLiabilitiesBridgepoint Education=Liquidity=2.069Current Assets/ Current Liabilities496,147/224,285
Preview Mode

This document has 16 pages. Sign in to access the full document!

Study Now!

XY-Copilot AI
Unlimited Access
Secure Payment
Instant Access
24/7 Support
Document Chat

Document Details

University
Ashford University
Course
BUS 650
Subject
Finance

Related Documents

View all
Past Exams

Texas Life and Health Insurance Exam 150 Questions

A study-sharing site offering verified Q&A for the Texas Life and Health Insurance Exam. Ideal for candidates preparing for certification with updated 2023 content, covering key laws, policies, and insurance concepts.

Class Notes

Understanding Obligation and Deobligation in Resou

Obligation: legally reserving funds for expenses e.g: travel orders. Deobligation: adjusting obligations downward when actual costs are less, freeing funds for other needs. Ensures efficient effective use of finite resources in government operations.

Solved Assignments

Budgeting for Life After High School

High school budgeting activity featuring a real-life scenario for college student Lisa. Students create a zero-based budget using her income, expenses, and support funds to learn personal finance, savings, and responsible spending.

Solved Assignments

Ch 4 les 1

Zach, a college freshman, uses his new credit card with a 19% APR for emergencies during a work break, facing minimum payments that may lead to costly interest and debt.

Class Notes

Understanding Credit Reports Analyzing John's Fina

This activity uses John Doe's financial story and a sample credit report to help students learn how to read and understand credit reports. Students analyze his credit use, debts, and recent financial inquiries to answer related questions.

Solved Assignments

CEO pay at John Deere and Caterpillar

Compares CEO pay at two companies.

Solved Assignments

Efficiency Test in US Stock Market

An assignment analyzing the efficiency of the U.S. stock market and its financial implications.

Solved Assignments

Financial Research Report

A detailed report analyzing financial trends, risk factors, and economic indicators.

Solved Assignments

Financial Planning and Budget Analysis

A financial study on budgeting techniques and financial planning strategies.

Solved Assignments

WACC Project Verizon Communication Inc

This document provides a comprehensive analysis of the Weighted Average Cost of Capital (WACC) for Verizon, offering insights into financial decision-making and investment strategies.