FIN 320 Final Project Milestone Two Guidelines and Rubric

Overview

Chipotle Mexican Grill

Scenario

The CFO of your company has asked for your support in preparing a report for the business's board of directors. Many of the board members are new, and some of them have little background in finance. With this in mind, you will need a report that all board members can easily understand.

Directions

Use the documents to calculate the same financial ratios. Finally, compare those ratios and analyze your results.

Specifically, you must address the following rubric criteria:

1. Financial Calculations. Calculate accurate financial formulas to assess the business's current financial health. Specifically, calculate the following formulas using the Ratios Most Recent Fiscal Qtr and the Ratios Same Fiscal Qtr 1 Year Ago worksheets in the Final Project Financial Formulas workbook:
   1. Working capital
   2. Current ratio
   3. Debt ratio
   4. Earnings per share
   5. Price and earnings ratio
   6. Total asset turnover ratio
   7. Financial leverage
   8. Net profit margin
   9. Return on assets
   10. Return on equity
2. Fiscal Quarter Comparison. Summarize the differences between the following:
   1. The results from your financial calculations of the most recent fiscal quarter
   2. The results of the same financial calculations of the same fiscal quarter from one year ago
      1. For example, if the most recent fiscal quarter available is the third quarter in 2023, you'll compare those results to the same financial calculations from the third quarter in 2022.
3. Comparison Analysis. Explain what your calculations and comparison show about the business's current financial health. Give examples to support your explanation for the following questions:
   1. Do the results show the business is financially healthy or unhealthy? Which results indicate this?
   2. What might be the causes of the business's financial success or failure?
   3. Is more information needed to determine the business's financial health? If so, which pieces of information might still be needed?
4. Short-Term Financing. Explain how potential short-term financing sources could help the business raise funds needed to improve its financial health. Base your response on the business's current financial information.

Ratios Most Recent Fiscal Qtr.

ACCOUNTING & FINANCIAL RATIOS CURRENT RATIO (Current Assets / Current Liabilities) TOTAL ASSET TURNOVER RATIO (Total Revenue / Total Assets) Current Assets 1620713 Total Revenue 9871649 Current Liabilities 1030625 1.572553548 Total Assets 8044362 1.227151264 WORKING CAPITAL (Current Assets - Current Liabilities) FINANCIAL LEVERAGE (Total Assets / Shareholder's Equity) Current Assets 1620713 Total Assets 8044362 Current Liabilities 1030625 590088 Shareholder's Equity 3062207 2.626981781 DEBT RATIO (Total Liabilities / Total Assets) NET PROFIT MARGIN (Net Income / Total Revenue Total Liabilities 4982155 Net Income 1228737 Total Assets 8044362 0.619335008 Total Revenue 9871649 0.124471302 EARNINGS PER SHARE (Net Income / Weighted Average Common Shares Outstanding) RETURN ON ASSETS (Net Income / Total Assets) Net Income 1228737 Net Income 1228737 Shares Outstanding 1371300 0.896038066 Total Assets 3044362 0.152745115 PRICE EARNINGS RATIO (Share Price (end of quarter / EPS) RETURN ON EQUITY (Net Income - Preferred Dividends / Shareholder's Equity) Stock Price 57.17 NI - Pref. Div. 1228737 EPS 0.896038066 63.80309293 Shareholder's Equity 3062207 0.401258635ACCOUNTING & FINANCIAL RATIOS CURRENT RATIO (Current Assets / Current Liabilities) TOTAL ASSET TURNOVER RATIO (Total Revenue / Total Assets) Current Assets 1175837 Total Revenue 8634652 Current Liabilities 921880 1.275477286 Total Assets 6927504 1.24643046 WORKING CAPITAL (Current Assets - Current Liabilities) FINANCIAL LEVERAGE (Total Assets / Shareholder's Equity) Current Assets 1175837 Total Assets 6927504 Current Liabilities 921880 253957 Shareholder's Equity 2368023 2.925437802 DEBT RATIO (Total Liabilities / Total Assets) NET PROFIT MARGIN (Net Income / Total Revenue) Total Liabilities 4559481 Net Income 899101 Total Assets 6927504 0.658170822 Total Revenue 8634652 0.104127068 EARNINGS PER SHARE (Net Income / Weighted Average Common Shares Outstanding RETURN ON ASSETS (Net Income / Total Assets Net Income 899101 Net Income 899101 Shares Outstanding 1381350 0.650885728 Total Assets 6927504 0.12978715 PRICE EARNINGS RATIO (Share Price (end of quarter / EPS) RETURN ON EQUITY (Net Income - Preferred Dividends / Shareholder's Equity) Stock Price 36.64 NI - Pref. Div. 899101 EPS 0.650885728 56.29252331 Shareholder's Equity 2368023 0.379684234