Business Analysis & Valuation using Financial Statements

This assignment consists of a thorough analysis and valuation of the company ‘Jack In The Box’ and their annual report for year-ended 2012(10-K is attached along with these instructions). The in-depth research/analysis of the annual report consists of four major topics: (1)Business Strategy Analysis,(2)Accounting Analysis,(3)Financial Analysis, and (4)Prospective Analysis. AFTER analyzing Jack In The Box’s annual report, these 4 key topics are to be discussed in accordance to what you took away from the valuation of the annual report (DESCRIPTIONS BELOW). Business Strategy Analysis(1) – Identify key profit drivers and business risks, and assess the company’s profit potential at a qualitative level. This involves analyzing their industry and their strategy to create sustainable competitive advantage. Accounting Analysis(2) – Evaluate the degree to which Jack In The Box’s accounting captures its underlying business economics. "Undo" any distortions by recasting their accounting numbers to create unbiased accounting data. Financial Analysis(3) – Use financial data to evaluate the current and past performance of Jack In The Box and to assess its sustainability. There are two important skills I need. First, the analysis should be systematic and efficient. And second, it should allow the analyst to use the financial data to explore any business issues. Ratio analysis and cash flow analysis are the two most commonly used financial tools that should be used here. Prospective Analysis(4) – As the last part of the business analysis, this section focuses on forecasting Jack In The Box’s future. Use the techniques such as financial statement forecasting and valuation. Both these tools will allow the synthesis of the insights from business analysis, accounting analysis, and financial analysis in order to make predictions about their future. Don’t waste precious space on an introduction or conclusion, simply rehashing items from the annual report. Get straight to the point, provide an answer to the 4 key topics and support it with relevant items. On this point, be very specific in your claims and accompanying support. In other words, be very pointed and concise in your writing. Be careful not to repeat yourself or use the same idea more than once. At the same time, use the space given to elaborate on your ideas and support your conjecture. Clearly delineate your ideas with the use of paragraphs and sentences that directly address the 4 key topics.

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