Week 2: Individual Financial Infographic Assignment

Using what you learn this week in your chapter readings (specifically Chapter 15 and the financial ratios document) and drawing on your degree knowledge, create a message in the form of an infographic for a NEW product of your choice. Your infographic should share key financial strategy information about your selected new product. You may find it easiest to select a product with which you are familiar and make a small modification to create the revised or new product. The reason/subject of the infographic is to share key relevant financial strategy information with executives. These executives do not have time to delve into the financial details and want a high-level overview. Your infographic must communicate the following (see Chapter 15 of textbook for assistance):

1. Company and new product
2. Companys pricing objective
3. Estimated Return On Investment (ROI)
4. External Environmental Influences on Product Pricing (Select One): Competitor Pricing Comparison or Economic Influence on Pricing or Governmental Regulations Influence on Pricing
5. Pricing Approach

1. Not sure where to start? Access the following short article that lists steps for getting started. You may find reviewing this weeks infographic Required Reading article helpful as you brainstorm ideas for your assignment.
   1. • The Ultimate Guide to Infographic Marketing
2. Software Options: Options for software to create your infographic include but are not limited to the following (these are all accessed outside of the Blackboard platform and may require you to create a free account:
   1. • Hubspot - MS PowerPoint
      • Piktochart
      • Canva
      • Easel.ly
      • Venngage
3. Posting Your Infographic: You will need to export your infographic out of the software program you used to create it. If it does not have an export feature, you will need to take a screenshot, making sure everything is clearly visible. Submit your file via the assignment submission link above.

Financial Ratios for MKTG 610 Useful formulas for evaluating a companys performance Profitability Indicators Return of Assets (ROA)=Net Income/Total Assets The return on assets ratio or ROA measures how efficiently a company can manage its assets to produce profits during a period Return on Equity (ROE)=Net Income/Total Stockholders Equity The return on equity ratio shows how much profit each dollar of common stockholders' equity generates. ROE is also an indicator of how effective management is at using equity financing to fund operations and grow the company. Net Profit Margin=Net Profits/Net Sales (Revenue) The objective of margin analysis is to detect consistency or positive/negative trends in a company's earnings. Positive profit margin analysis translates into positive investment quality Financial Leverage Ratios Debt-ratio=Total Liabilities/Total Assets This is used to gain a general idea as to the amount of leverage being used by a company. A low percentage means that the company is less dependent on leverage, i.e., money borrowed from and/or owed to others. The lower the percentage, the less leverage a company is using and the stronger its equity position. Debt-equity ratio=Total Liabilities/Shareholders Equity Shows the percentage of company financing that comes from creditors and investors. A higher debt to equity ratio indicates that more creditor financing (bank loans) is used than investor financing (shareholders). Working Capital=Current Assets Current Liabilities The working capital ratio indicates whether a company has enough short term assets to cover its short term debt. Anything below 1 indicates negative W/C (working capital) while anything over 2 means that the company is not investing excess assets. Most believe that a ratio between 1.2 and 2.0 is sufficient. Also known as "net working capital". Operating Performance Indicators Fixed-Asset Turnover Ratio=Revenue/Property, Plant and Equipment This ratio is a rough measure of the productivity of a company's fixed assets (property, plant and equipment) with respect to generating sales. This annual turnover ratio is designed to reflect a company's efficiency in managing these significant assets. The higher the yearly turnover rate, the better. Asset Turnover Ratio=Sales/Total Assets This ratio shows how efficiently a company can use its assets to generate sales. Inventory Turnover Ratio=Cost of Goods Sold/Inventory The inventory turnover ratio is an efficiency ratio that shows how effectively inventory is managed by comparing cost of goods sold with average inventory for a period. This measures how many times average inventory is "turned" or sold during a period. Investment Valuation Ratios Price/Earnings Ratio=Stock Price per Share/Earnings per Share (EPS) The PE ratio helps investors analyze how much they should pay for a stock based on its current earnings. Price/Book Value Ratio=Stock Price per Share/Shareholders Equity per Share The price/book value ratio, often expressed simply as "price-to-book", provides investors a way to compare the market value, or what they are paying for each share, to a conservative measure of the value of the firm.