perform a thorough financial analysis of Covenant Logistics Group, Inc. (CVLG). This analysis should be for the
Question:
perform a thorough financial analysis of Covenant Logistics Group, Inc. (CVLG). This analysis should be for the years 2019-22. ( CVLG Financial Analysis Template: https://docs.google.com/spreadsheets/d/1QAdz5I93RU3HJki_GR_NMuO4_WNpHQ5C/edit?usp=sharing&ouid=107187626869992601074&rtpof=true&sd=true )
- At least ten ratios from the "Financial Analysis Manual" (https://drive.google.com/file/d/1HGcCFRGtZDTzcTSDPMS3YrupdQL2jz0Q/view?usp=sharing ) that would be considered most relevant in measuring TSC's performance. Please calculate these ratios for the stated periods.
- A vertical and horizontal analysis (common sizing and trends) of CVLG's Income Statements and Balance Sheets for the stated periods.
Please Compute the WACC and ROIC for 2021. Please use the 10-k : (https://www.sec.gov/ix?doc=/Archives/edgar/data/928658/000143774923004926/cvti20221231b_10k.htm# ) and the Covenant 2021 Annual Report ( https://drive.google.com/file/d/1SU3GoKukWIgRByR3CXwjbGNpxp1CpgEf/view?usp=sharing ) to determine the cost of debt and please perform a CAPM analysis to determine the cost of equity.
- Please explain why the key ratios selected are relevant to measuring future CVLG performance. The multiple ratios do not consider the same financial aspect of the company.
- Based on the thorough financial analysis of CVLG, Please discuss the interpretation/insights and strategic applications/implications from the analysis.
Extra Material: CVLG ANNUAL REPORT 2020 ( https://drive.google.com/file/d/1eS6ngtxrwNT8sbk2cuN_vNtunjLovxIi/view?usp=sharing )
Intermediate Accounting
ISBN: 978-0470161012
9th Canadian Edition, Volume 2
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield.