Assignment 8.1 4 Worksheet: The Project Charter Project Name:Burlington District 301 – Powering Forward End Users Project Manager: Project Tracking Number: 00562431 - 15 Date:7/3/2015 Project Justification: In District 301, the schools lack network infrastructure or sufficient end user devices to support 21thcentury learninginitiative, which include common core standards and digital curriculum.The “Powering Forward End Users” project will deliver the district with a network infrastructure and end user devices to address the ongoing concerns. Overview of Deliverables Key Project Deliverables Name Description Framework The whole roadmap outlining the key components of recognition activities Project charter Design, develop and implement the employee recognition framework Logic Model Outcomes and measures, Outlines key activities Project backgrounder A complement to the project charter outlining results and Research summary Its contains general, corporate, and jurisdictional research Guidelines Its contains common program guidelines and financial guidelines Tools and resources Its contains templates, guides, sample surveys, quotes, tips, etc Communication/ Implementation plan Tools resources to stakeholder groups, Communication of framework, and communication plan Specific Project Objectives and Success Criteria · For including the regular feedback and recognition, create an overall workspace culture. · For assisting departmental recognition activatesit’s generated various tools,guidelines. Project cost: Based on the existing current network infrastructure and existing end user devices, the initial projectedfinancial numbers for this project will be approximately $35,500,000. Below is an estimated expected cost broken down for project “Powering Forward End Users.” Network infrastructure equipment: $ 16,500,000 Wiring core infrastructure cabling: $9,500,000 End user devices and equipment: $9,500,000 Primary Stakeholders and Roles Project Manager Responsibilities: She develops & maintains the project plan i.e.implementation,resourcing, work plans, etc.and he also monitor project progress, &make surethat the projects are finished on time &within budget. Stakeholders Role: Directors and Managers Responsibilities: The Stakeholders will work together with the Product Manager Invoiceapprehension or issues affecting the success of the projects. Business Analyst Responsibilities: The Business Analystsinterpret,analyze, interpret, &business document rules and complete all the requirements for technical systems. as well as, they support in integration, support the development of training material&user acceptance testing, contributed in the improvement of systems, andgives post-implementation support. Key Assumptions: · Attention &Support will be provided by the Project manager and Project Steering Committee · Make sure that Charter Resources will be completelyavailable to the adequately ...

1. Assignment 8.1 4

2. Worksheet: The Project Charter
Project Name:Burlington District 301 – Powering Forward End
Users
Project Manager:
Project Tracking Number: 00562431 - 15
Date:7/3/2015
Project Justification:
In District 301, the schools lack network infrastructure or
sufficient end user devices to support 21thcentury
learninginitiative, which include common core standards and
digital curriculum.The “Powering Forward End Users” project
will deliver the district with a network infrastructure and end
user devices to address the ongoing concerns.
Overview of Deliverables
Key Project Deliverables
Name

3. Description
Framework
The whole roadmap outlining the key components of recognition
activities
Project charter
Design, develop and implement the employee recognition
framework
Logic Model
Outcomes and measures, Outlines key activities
Project backgrounder
A complement to the project charter outlining results and
Research summary
Its contains general, corporate, and jurisdictional research
Guidelines
Its contains common program guidelines and financial
guidelines
Tools and resources
Its contains templates, guides, sample surveys, quotes, tips, etc
Communication/ Implementation plan
Tools resources to stakeholder groups, Communication of
framework, and communication plan
Specific Project Objectives and Success Criteria
· For including the regular feedback and recognition, create an
overall workspace culture.
· For assisting departmental recognition activatesit’s generated
various tools,guidelines.
Project cost:
Based on the existing current network infrastructure and
existing end user devices, the initial projectedfinancial numbers
for this project will be approximately $35,500,000. Below is an

4. estimated expected cost broken down for project “Powering
Forward End Users.”
Network infrastructure equipment: $ 16,500,000
Wiring core infrastructure cabling: $9,500,000
End user devices and equipment: $9,500,000
Primary Stakeholders and Roles
Project Manager
Responsibilities:
She develops & maintains the project plan
i.e.implementation,resourcing, work plans, etc.and he also
monitor project progress, &make surethat the projects are
finished on time &within budget.
Stakeholders
Role: Directors and Managers
Responsibilities:
The Stakeholders will work together with the Product Manager
Invoiceapprehension or issues affecting the success of the
projects.
Business Analyst
Responsibilities:
The Business Analystsinterpret,analyze, interpret, &business
document rules and complete all the requirements for technical
systems. as well as, they support in integration, support the
development of training material&user acceptance testing,
contributed in the improvement of systems, andgives post-
implementation support.
Key Assumptions:
· Attention &Support will be provided by the Project manager
and Project Steering Committee
· Make sure that Charter Resources will be completelyavailable
to the adequately staff the project
· Resources will be completely available for supporting to the
new network infrastructure andthe client devices.
· Only Managers andDirectorswill have access to Cognos.

5. Signatures—the following people agree that the above
information is accurate:
· Project team members
· Project sponsor and/or authorizing manager(s):
Worksheet: Project Scope Statement
Project Justification
District 301 requiresthat every school site has a minimum of
one computer lab that containing 30 desktop computers. With
the beginning of 21st Century education initiatives, Common
Core State Standards, and the Smarter Balanced Assessment

6. systems, school District has a requirement to give additional
technology right to use for its student population. At the end of
the 2015 calendar year there are requirements to provide an
additional technology for the student’s.The technology used by
the present network infrastructure in the campuses will not
support the wired and the wireless network apparatus.
Overview of Deliverables
The Going Digital project deliverables contains the following
points:
· The edge and core network electronics that will support 10
Gbps speeds at each and MDF&IDF.
· At all campuses10 Gbps single mode fiber from the MDF to
every IDFs
· Newchannel andconduit that will allow for 40% growth.
· Network switches with 1 Gbps speeds and it will allow for
20% growth (open ports for additional drops).
· The Redundant network placed in the District Office Data
Center which supports 10 Gbps speeds for the , District Office
IDFs ,server connectivity, and core equipment connectivity.
· For the management of the network there are two software’s
1. Network configuration
2. monitoring software
Specific Project Objectives and Success Criteria
The District have tomake an agreement with the vendors for the
completions of the two phases one is Edge and Core Network
Infrastructure Electronics phase and another is Network Cabling
Infrastructure and Pathway phase of the Going Digital Project.
Different contracted employees and the school staff may also
make an agreement for supporting these two phases.
After completing the following points the the project will be
considered as
1) The District signs off on the vendor project deliverables from
Edge and Core Network Infrastructure Electronics phase and
Network Cabling Infrastructure and Pathway phase of the Going
Digital project.

7. 2) The training has completed for all the new devices in every
school sites.
3) All new student devices and carts have been deployed.
4) All new teacher devices have been deployed.
Primary Stakeholders and Roles:
Project Sponsor
Project sponsor Provides executive team that givesapproval and
sponsorship for the project. Has budget rights for the project
and are the main stakeholder and recipient for the project
deliverables.
Project Owner
Project owner makes policy definition to the Project team. She
resolves all the issues regarding the projects, makes final
decisions across functional area and overall organization. The
project owner will work directly with the projectsponsor on all
policy clarification.
Project Manager
Project manager provides overall management to the project.
Project manager has to work in different areas:
1) Accountable for establishing a Project Charter
2) developing and managing the work plan
3) securing appropriate resources
All team members report to the project manager.He Handles all
project administrative duties, interfaces to project sponsors and
owners and has overall accountability for the project.
Stakeholder
Key provider of requirements and recipient of project
deliverable and associated benefits. Deliverable will directly
enhance the stakeholders’ business processes and environment.
Key Assumptions:
The following assumptions will make in order for the going
digital project to be successful:
1) Support and attention will be provided by the Project
Sponsor and the Project Steering Committee.
2) Make sure the overall budget for the project will remain

8. $35,500,000 as mention in the Project Charter.
3) Make sure that Charter Resources will be completely
available to the adequately staff the project.
4) Resources will be completely available for supporting to the
new network infrastructure and the client devices.
Signatures—the following people agree that the above
information is accurate:
· Project team members:
· Project sponsor and/or authorizing manager(s):

9. _______________
*Appendices (Needs Analysis/Feasibility Study Notes, Detailed
Work Breakdown Structure, Preliminary Schedule, Preliminary
Cost Estimate, Sample Deliverables, Background
Memos/Reports, Organization Chart of Project Team, others as
needed).
Worksheet: Work Breakdown Structure
Justification
Since the Powering Forward End Users is an official project of
Burlington District 301 has begun, the projects activities need
to be identified in order to determine their priorities. Project
activities will be drawn from the Work Breakdown Structure
developed for this project. The purpose of creating project
activities is to give guidelines on priorities and rank activities
that require most attention in order to enhance deliverability.
Overview of Deliverables
Project activities for Powering Forward End Users
Powering Forward End Users
Closeout
Control

10. Project Initiation
Planning
Execution
Specific Project Objectives and Success Criteria
The objectives of WBS that will determine the success of the
project include the following
· Assigning specific duties to each stakeholder
· WBS determines when a task executor is supposed to move to
the next step
· WBS is enhance formal and effective communication during
the project delivery hence increasing efficiency
· Powering Forward End Users will be considered a success
when the receiving end accept and start using the system.
· The project will be considered a success when stakeholders

11. show and report satisfaction through written formal
confirmation.
Primary Stakeholders and Roles:
Project sponsor
Project sponsors will be involved in with WBS. Sponsors will
provide resources to this project and they need step by step
report on the progress of the report. WBS makes the project
official and presentable to the sponsors. Sponsor will also
approve the WBS.
Project Owner
The project owner is responsible for making the Working
Breakdown Structure (WBS). Drawing from the project scope
and charter, she will develop a WBS with deliverables
highlighted in the scope and charter.
Project Manager
The project manager prepares the WBS. He/She is responsible
for step by step activities of the project and has a mandate to
develop a WBS specific to the project. The project manager
should provide the timeline he/she thinks the project will
effectively complete.
Stakeholder
Stakeholders are motivators of why the project is developed.
The duties involve raising concern when they feel they have any
issue they need to be solved.
Key Assumptions:
The following assumptions will make the WBS effective
· Develop custom and logical WBS activities
· Document the number of activities in each level
· Ensure every activity is consistent and relevant to the project
· Ensure that the WBS give enough time for specific projects
· Ensure that the WBS has working plan budget

12. Worksheet: Project Scheduling
Justification
PERT/CPM
In an effort to try and complete the Powering Forward End
Users project, the Program Evaluation Review Technique
(PERT) is adopted as a project management tool that schedule,
organize, and coordinate tasks. Using PERT, project activities
are illustrated through graphics and directional labels to
represent tasks of the project. Tasks are sequenced according to
a task that will come earlier and a task that will come later. The
importance of project scheduling in this diagram is to enhance
parallel and concurrent tasks scheduling. During project
scheduling, the time and resources allotted to the task are
indicated. The aim of project scheduling using PERT/CPM and
Gantt Chart is to provide directional flow of the project
activities considering the deliverables.

13. Overview of Deliverables
Project scheduling for Powering Forward End Users
Activities for evaluation and review methods
Project PERT/CPM
February
March/April
May/June
Create project framework/drawing
=1 week
1/3/15 – 6/3/15
Resource Plan/Labor acquisition -2 weeks
8/3/15 – 24/3/15
Contacting vendors
2 weeks

14. 24/3/15 – 7/4/15
Project Installation
2 weeks
1/5/15 – 14/5/15
Test the new system
1 week
17/5/15 – 23/5/15
Project Plan, budget & approval
=4 weeks
1/2/15 - 28/2/15
Project Closeout Process
2 Weeks
25/5/15 – 5/6/15
Purchasing material

15. 3-Weeks
9/4/15- 29/4/15
Gantt chart

16. 2015
2015
Jan
Feb
March
April
April
May
July
2015
Milestone 4
6/6/2015
Milestone 3
Milestone 2
Milestone 1
1/2/2015
47 days
Task 10 Closeout
25/5/15 – 5/6/15
10 days
Task 9 Testing
17/5/15 – 23/5/15
6 days
Task 8 Installation
1/5/15 – 14/5/15
13 days
Task 5 Material Acquis.
9/4/15- 29/4/15
20 days

17. Task 4 Contact Vendor
24/3/15 – 7/4/15
13 days
Task 3 Resource plan
8/3/15 – 24/3/15
14 days
Task 2 Framework
1/3/15 – 6/3/15
7 days
Task 1 Project plan
1/2/15 - 28/2/15
27 days
Specific Project Objectives and Success Criteria
The specific activities that need scheduling to enhance
completion of the project include:
· Determining whether to adopt the PERT/CPM or Gantt chart
· Identifying and attaching resources and time to project
activities
· Identify the sequence in which projects are completed
· Identify and clearly demonstrate the dependencies within the
project
Primary Stakeholders and Roles:
Project sponsor
The role of the project sponsors is to receive the project
scheduling program for information on the time the project will
take. The project sponsors are allowed to review and
recommend changes to the developed project scheduling to
make it custom.
Project Owner
The project owner is responsible for creating the project
scheduling using the PERT or Gantt chart but the former is
preferred. The project owner will delegate creation of this chart
to make it an official project guide.
Project Manager
The project manager is responsible for creating and preparing

18. the project scheduling chart. He/she is responsible for outlining
project dependency/independence activities in the PERT and
Gantt charts.
Key Assumptions:
The following assumptions will assist in foreseeing the
effectiveness of the project scheduling.
· Choosing between the PERT and CPM, the PERT is preferred
over the CPM
· Creating both the PERT and the CPM of the project
· The Gantt chart and the PERT chart are the two best charts
used in project management

19. Worksheet: Project activities planning consultant
Justification
The Powering Forward End Users project has been proposed and
the proposal has been approved. The project plan has been
developed and approved. The next valuable resource that this
project need is a detailed activity plan, scheduling, sequencing
and timing. Activity plan is important because it assists in
reviewing the scenario of entire project. More importantly is the
expert project manager specializing in scheduling. The activity
schedule expert will assist in developing the Powering Forward
End Users project’s executable activity. Due to the significance
and formality of the project, the scheduling expert offer
consultative guide for the success of the present project.
Therefore, choosing an expert requires interviewing the once
candidate for qualities required to become the project activity
planning, sequencing and scheduling task.
Overview of Deliverables
Interview process and questions for the project activities expert
consultant
An advertisement about the expert required for consultation in
this project will be sent out to relevant target companies known
for offering project management consultation services.
Individual or independent consultants will also be invited to
apply. After the applications are received, the interview date
will be scheduled for top 3 competitive applicants selected from

20. their received application documents. The project scope and
project plan will be sent to qualified applicants who will be
called to the interview. The purpose of making the project
available to them is to ensure that the get the overview of the
project needs and develop prior solutions to the same. During
the interview the following questions will be asked. These
questions are arranged in categories.
Technical skills
What software technology do you use when you are completing
developing activity plan for your client?
What software technology will you suggest for Powering
Forward End Users project?
Is the software technology you have decided available for this
project? Does it have a cost of using it?
General questions
What is your approach to the Powering Forward End Users
project plan activities?
Why would we need an activity plan?
How do you handle politics with your work?
Do you think putting a deadline to developing a project activity
plan is necessary?
What will you require from us to ensure a successful consulting
relationship?
Specific expert interview Objectives and Success Criteria
The specific interview objectives for the need for hiring an
expert consultant for activity plan include:
· Getting expert guide from the independent project activity
planning consultant
· Determining the specific deliverables for the current project
plan activities
· To hire an expert consultant who is willing to develop a
positive relationship with the project stakeholder
· To determine the resources required for creating a useful and
resourceful project activity schedule and sequencing.
Primary Stakeholders and Roles:
Project Owner

21. The project owner will be responsible for determining the need
for the activity scheduling expert. She/he will determine the
scope of the project scheduling expert. The project owner will
liaise with the project manager to hire a qualified expert.
Project Manager
The project manager will be responsible for the hiring process
of the expert scheduling consultant. The manager will delegate
the advertising and sending invitation of the interview to
qualified candidates. The manager will also be part of the
selection panel that will interview and select the highest
qualified consultant.
Key Assumptions:
The following assumptions will guide the success of hiring a
scheduling expert:
· The formal nature of this project calls for the formality
processes including expert hiring process
· There is need to hire activity scheduling expert with
knowledge of prioritizing activities
· Professional scheduling and activity planning is considered
cost effective
· Formal activity plan will ensure adequate planning process for
delivering above expectation for this project.

22. Worksheet: Project Activities
Justification
Since the Powering Forward End Users is an official project of
Burlington District 301 has begun, the projects activities need
to be identified in order to determine their priorities. Project
activities will be drawn from the Work Breakdown Structure
developed for this project. The importance of project activities
is to help map the project life cycle, to identify the time and
resources each activity will use. The purpose of creating project
activities is to give guidelines on priorities and rank activities
that require most attention in order to enhance deliverability.
Overview of Deliverables
Project activities for Powering Forward End Users
Activities for reviewing, revising, and approving work

23. · Project phases
· activities
· Project tasks
· Project purpose/scope
· Project resource
Project plan
· Project cost and budget
· Identify labor type/time
· Material quantity needed
· Develop the resource scheduling e.g. logistics
Resources plan
· Types of labor cost to be incurred
· Unit cost for labor, equipment and material
· Cost of project meeting
· Contingency and administrative costs
Financial plan
· Identify risks with the project
· Categorize and prioritize risks
· Identify preventive actions
· Monitor each risk that can occur

24. · Incorporate risks in the acceptance plan
Risk Plan
Activities for delivering completed deliverables
· Identify project requirement
· List deliverables
· Setting quality assessment criteria such as testing, feedback
after consumer use
· Evaluating deliverables
Quality plan
· Develop full list of project deliverables
· Outlining acceptance standards
· Schedule official launch
· Create acceptance plan
Acceptance plan
Specific Project Objectives and Success Criteria

25. The specific objectives for the activity planning include the
following:
· Determining specific activities and categorizing the activities
into order of execution
· Planning the timing and sequencing of the project activities
· Project activities assist in identify and planning how to control
risks that occurs
· Assist in categorizing labor activities of required in the
project
· Activity planning and sequencing is one of the best practices
in formal/sponsored project acquisition.
· Project activity identification determines the time and place
where project is considered the complete and when the project
is considered ready for use.
Primary Stakeholders and Roles:
Project sponsor
Project sponsors will be involved with project activities. The
project sequencing will be useful for showcasing step by step
progress. Due to the formal nature of Powering Forward End
Users, the complete project should undergo formal processing to
assist in justifying sponsorship.
Project Owner
The project owner is responsible for creating the project
activities, sequencing and planning template. The project owner
will look for an external expert to assist in reviewing the
project activities plan and deliverables. The project manager
will draw deliverables for creating the project activities from
the project WBS.
Project Manager
The project manager is responsible in preparing the project
activity’s plan and presenting the plan to relevant authorities
including the project owner, project sponsors and other
stakeholders. He/She is responsible for step by step project
timing, activity sequencing and resources planning for the
project. The project manager should identity resources such as
the enterprise resources planning, which he/she thinks will be

26. valuable for the project plan.
Key Assumptions:
The following assumptions will assist in foreseeing the
effectiveness of the work planning and scheduling.
Develop custom and logical project activities scheduling and
planning
· Categorize activities in the order of priority
· Ensure the risks of the project are identified and prior
solutions developed
· Justify financial resources used in specific activities such as
material buying and labor costs
· Ensure the project undergoes formal handover processing
Worksheet: Project Scheduling
Project operational definitions
Powering Forward End Users project seek to install computers
in Burlington District 301. The purpose of the project is to
improve information communication in the target area.
Quality verification checklists
The quality verification checklist includes evaluating
deliverables of the project and approving the already delivered
project activities whether they are in line with the required
project needs.
Verification checklist includes re-evaluation resources used for
the project inform of auditing.
Project scope statement
District 301 requires that every school site has a minimum of
one computer lab that containing 30 desktop computers. With
the beginning of 21st Century education initiatives, Common
Core State Standards, and the Smarter Balanced Assessment
systems, school District has a requirement to give additional
technology right to use for its student population. At the end of
the 2015 calendar year there are requirements to provide an
additional technology for the student’s. The technology used by
the present network infrastructure in the campuses will not

27. support the wired and the wireless network apparatus.
Project product or service description
Creating technology enabled framework network for Burlington
District 301. Additional technology for students is this district
area to enhance information technology.
Proposed project standards and regulations
Proposed project standards and regulations for this project will
measure the quality standards that will determine project work
process. Project manager will follow the processes and align it
to the deliverables of the project plan activities.
Descriptions of the project process outputs
Project output include design and development of a
technological information network that will deliver on
communication and implementation plan for schools in the
selected district. The project process output will therefore
include developing a network with the edge and core network
electronic that supports 10 Gbps speed. Developing a single
mode fiber of 10 Gbps, inclusion of new channel and conduit
that will allow 40% growth. Developing a network switch of 1
Gbps speed with growth allowance of 20% growth. And placing
a redundant network in Burlington District Office Data Center
which supports 10 Gbps speeds. Developing server connectivity
and core equipments connectivity and developing network
configuration and software monitoring mechanisms.
2. Write an executive summary of up to 500 words outlining
the key points of your Quality
Management Plan
For Powering End Users Project quality management plan, the
process outlines defined and acceptable level of quality defined
by customer stakeholder. The project management or project
owner might be a different stakeholder from the one who will
use the project. Therefore, the consumer of the project outcome
is expected to stay with the project for long and the quality of
the project is tailored towards ensuring success or survival. A
proactive quality management plan is tailored towards helping

28. achieve project deliverables and the Quality control for the
Powering End User Project defines the following:
· Ensuring quality levels of project deliverables
· Ensuring quality levels of resource used and
· Ensuring the proper use of defined resources and accounting
for these resources.
The purpose of quality control for this project is therefore to
ensure that the project activities are built agreeable standards
and requirement. Different levels of project plan have
measurable objectives suggesting that all project plan activities
must be delivered to agreed upon protocols.
Quality control management encompasses project quality
objectives. For this project, the project objectives include the
comprehensive project purpose and rationale. Therefore, the
project purpose and rationale include implementing an
educational initiative in the selected district that will enhance
the 21st century communication strategy.
The human resources element is also a significant consideration
in the development of quality control plan activities. Human
resource quality management includes hiring the right person
for the right job. A complex project like Powering the End User
project will require consultants. For example, business analysts,
human resources expert and a networking professional will be
required for this project. Each of these experts is used to
improve the project outcome and enhance quality. Part of the
quality control management plan is to identify valuable
stakeholders and document their responsibilities in the project.
Stakeholders such as project manager, project team, project
owner, suppliers, sponsors and customers each has a role to play
towards the project’s value.
Project quality management also involves monitoring and
evaluation. Monitoring and evaluation is an important
component of any project. The process seeks to align financial
and human resources to project deliverables. The project
implementation needs justification and evidence of the project.
Additionally, the project has a warranty lifespan. The warranty,

29. the resource and the person implementing the warranty should
be identified and made known to project stakeholders who will
contact him/her wherever there is need for the entire project
warranty period. Depending on similar project, the project
period takes as much as one year but the industry will determine
the length of the powering end user project warranty.
Finally, the quality management plan is part for the project plan
segment of the project. Therefore, it requires resources and
these resources include the monitoring and evaluation officer.
The project deliverables in the project plan quotes project
quality management toward the end of the project. The purpose
of the quality management is to ensure that the project is
delivered for the expectations. The sponsors also need to
account for the project hence the importance of project quality.
Activity Instruction
For this assignment, you will complete the Financial Overview
component of your course project. To complete this assignment,
use the Financial Analysis Toolkit Excel file, provided in the
Resources, to complete a financial analysis of your chosen
company over the last two most recent years available in annual
reports. Replace the numbers provided in the Excel file with the
appropriate numbers for your firm. Then, write a 2–3 page
financial analysis of your company, addressing the following
elements:
•Identify your company, its industry, and analyze the important
segments (percentage of sales or subsidiaries) of your company
compared to its industry and its overall business.
•Perform a complete financial analysis of your chosen
company's financial statements—horizontal, vertical
(Percentage of Sales and Common-Size), and changes in
ratios—for the last two years.
•Compare all ratios to industry averages. Evaluate the

30. company's ratios against the industry averages.
•Explain the significance of the company's ratios when
compared to industry averages.
•Analyze the company's cash flows.
•Assess the overall financial health of your company based on
this financial analysis.
A great way to integrate your completed calculations from your
Excel sheet into your written analysis is to paste pieces of the
worksheet directly into your Word document. You are also
encouraged to create graphs or charts from the data that may
illustrate your analyses as well.
N.B
Your project in this course is a financial analysis of a publicly
traded U.S. company of your choice, in order to assess the value
of the firm and its place in the global market.
C3 Took KitTool Kit for Analysis of Financial Statements
Financial statements are analyzed by calculating certain key
ratios and then comparing them with the ratios of other firms
and by examining the trends in ratios over time. We can also
combine ratios to make the analysis more revealing, those
indicated below are exceptionally useful for this type of
analysis. RATIO ANALYSIS (Section 3.1)*NVIDIA Fiscal
Years starts and ends on Jan 31, such that FY13 represents Jan
31,2012 to Jan31, 2013Input Data:20132012Year-end common
stock price$12.26$13.86Year-end shares outstanding (in
thousands)616,756612,191Tax rate15%12%After-tax cost of
capitalLease payments (in thousands)$18,998$21,439Required
sinking fund payments$0$0Balance Sheets(in thousands of
dollars)Assets20132012Cash and
equivalents$906,223$767,218* Added to cash and quivalents
prepaid expense and deferred income taxesShort-term
investments$2,995,097$2,461,70020132012Accounts
receivable$454,252$336,14369,70149,411prepaid expenses and

31. otherInventories$419,686$340,297103,73649,931deferred
income taxes Total current assets$4,775,258$3,905,358Net
plant and equipment$1,636,987$1,647,570* In addition to
equpment also includes goodwill, intangible assets, and other
assetsTotal
assets$6,412,245$5,552,92820132012641,030641,030goodwillL
iabilities and equity312,332326,136intangible assetsAccounts
payable$356,428$335,072107,481120,332other assetsNotes
payable$0$0Accruals$619,795$594,886 Total current
liabilities$976,223$929,958Long-term
bonds$608,319$477,24620132012 Total
liabilities$1,584,542$1,407,2043,193,6232,900,896additional
paid-in capitalPreferred stock (2,00,000 shares: none
issued)$0$0-1,622,709-1,496,904treasury stockCommon stock
(616,756,134 shares oustanding 2013 and 612,191,412
outstanding in 2012$720$700998110,614accumulated other
comprehensive incomeRetained
earnings$3,246,088$2,730,418Total common
equity$4,827,703$4,145,724* Added to Total Common equity
additional paid-in capital, treasuary stock, and accumulated
other comprehensive incomeTotal liabilities and
equity$6,412,245$5,552,928Income Statements(in thousands of
dollars)20132012Net sales$4,280,159.0$3,997,930.0 Operating
costs$3,631,920.0$3,349,631.0Earnings before interest, taxes,
depr. & amort. (EBITDA)$648,239.0$648,299.0
Depreciation$0.0$0.0 Amortization$0.0$0.0 Depreciation and
amortization$0.0$0.0Earnings before interest and taxes
(EBIT)$648,239.0$648,299.0 Less interest -$13,800.0-
$15,097.0Earnings before taxes (EBT)$662,039.0$663,396.0
Taxes (15.0%, 12.4%)$99,503.0$82,306.0Net income before
preferred dividends$562,536.0$581,090.0 Preferred
dividends$0.0$0.0Net income available to common
stockholders$562,536.0$581,090.0Common
dividends$0.0$0.0Addition to retained
earnings$562,536.0$581,090.0Calculated Data: Operating
Performance and Cash Flows20132012Net operating working

32. capital (NOWC)$803,938.0$513,700.0Total operating
capital$2,440,925.0$2,161,270.0Net Operating Profit After
Taxes (NOPAT)$551,003.2$567,909.9Net Cash Flow (Net
income + Depreciation)$562,536.0$581,090.0Operating Cash
Flow (OCF)$551,003.2$567,909.9Free Cash Flow
(FCF)$271,348.2N/ACalculated Data: Per-share
Information20132012Earnings per share
(EPS)$0.91$0.95Dividends per share (DPS)$0.00$0.00Book
value per share (BVPS)$7.83$6.77Cash flow per share
(CFPS)$0.91$0.95Free cash flow per share
(FCFPS)$0.44N/ALIQUIDITY RATIOS (Section
3.2)Industry20132012AverageLiquidity ratios Current
Ratio4.894.202.22 Quick Ratio4.463.831.3ASSET
MANAGEMENT RATIOS (Section
3.3)Industry20132012AverageAsset Management ratios
Inventory Turnover10.2011.754.78 Days Sales
Outstanding38.730.69
Christopher Buzzard: To calculate the DSO ratio, a 365-day
accounting year was used.25.6*Industry leader Fixed Asset
Turnover2.612.431.89*Industry leader Total Asset
Turnover0.670.720.63DEBT MANAGEMENT RATIOS (Section
3.4)Industry20132012AverageDebt Management ratios Debt
Ratio24.71%25.34%39.30%*Industry leader Debt-to-Equity
Ratio0.330.340.65*Industry leader Market Debt
Ratio17.33%14.23%24.40*Industry leader Times Interest
Earned46.9742.94196.79*Incorrect for 2013 and 2012 as
interest combined is income not expense EBITDA Coverage
Ratio128.36
Brigham: (EBITDA + Lease Payments) / (Interest + Loan
Payments + Lease Payments)
105.60N/APROFITABILITY RATIOS (Section
3.5)Industry20132012AverageProfitability ratios Profit
Margin13.14%14.53%19.96% Basic Earning
Power10.11%11.67%17.63%*Industry leader Return on

33. Assets8.77%10.46%12.56% Return on
Equity11.65%14.02%19.43%MARKET VALUE RATIOS
(Section 3.6)Industry20132012AverageMarket Value ratios
Price-to Earnings Ratio13.4414.6025.77*NVIDIA doesn't
account for depreciation in their 10-K statements Same P/E
P/CF Ratio because there is no depreciation Price-to-Cash Flow
Ratio13.4414.60
Christopher Buzzard: P/CF ratio is calculated by dividing the
price by the net cash flow per share.
Brigham: (EBITDA + Lease Payments) / (Interest + Loan
Payments + Lease Payments)
Christopher Buzzard: To calculate the DSO ratio, a 365-day
accounting year was used.9.66 Price-to-
EBITDA11.6613.095.13*Industry Leader Market-to-Book
Ratio1.572.053.59TREND ANALYSIS, COMMON SIZE
ANALYSIS, AND PERCENT CHANGE ANALYSIS (Section
3.7)TREND ANALYSISTrend analysis allows you to see how a
firm's results are changing over time. For instance, a firm's
ROE may be slightly below the benchmark, but if it has been
steadily rising over the past four years, that should be seen as a
good sign.A trend analysis and graph have been constructed on
this data regarding Nvidia's ROE over the past 5 years. (Nvidia
and indusry average data for earlier years has been
provided.)ROENVIDIAAMDIntel2009-1.2%-
213.1%12.93%2010-
2.7%107.4%10.82%20118.7%56.7%25.16%201215.9%37.7%27.
15%201311.7%-111.2%22.66%Figure 3-1 Rate of Return on
Common EquityCOMMON SIZE ANALYSISIn common size
income statements, all items for a year are divided by the sales
for that year.Figure 3-2 Common Size Income
StatementsIndustry CompositeNvidia201320132012Net
sales100.0%100.0%100.0% Operating

34. costs72.1%84.9%83.8%Earnings before interest, taxes, depr. &
amort. (EBITDA)27.9%15.1%16.2% Depreciation and
amortization0.0%0.0%0.0%Earnings before interest and taxes
(EBIT)27.9%15.1%16.2% Less interest 0.0%-0.3%-
0.4%Earnings before taxes (EBT)27.9%15.5%16.6% Taxes
(15.0%, 12.4%)7.3%2.3%2.1%Net income before preferred
dividends20.6%13.1%14.5% Preferred
dividends0.0%0.0%0.0%Net income available to common
stockholders (profit margin)20.6%13.1%14.5%In common
sheets, all items for a year are divided by the total assets for
that year.Figure 3-3 Common Size Balance SheetsIndustry
CompositeNvidia201320132012AssetsCash and
equivalents13.0%14.1%13.8%Short-term
investments11.5%46.7%44.3%Accounts
receivable7.1%7.1%6.1%Inventories5.6%6.5%6.1% Total
current assets37.2%74.5%70.3%Net plant and
equipment62.8%25.5%29.7%Total
assets100.0%100.0%100.0%Liabilities and equityAccounts
payable12.6%5.6%6.0%Notes
payable0.4%0.0%0.0%Accruals2.3%9.7%10.7% Total current
liabilities15.3%15.2%16.7%Long-term bonds61.1%9.5%8.6%
Total liabilities76.4%24.7%25.3%Preferred
stock0.0%0.0%0.0%Total common
equity23.6%75.3%74.7%Total liabilities and
equity100.0%100.0%100.0%PERCENT CHANGE ANALYSISIn
percent change analysis, all items are divided by the that item's
value in the beginning, or base, year.Figure 3-4 Income
Statement Percent Change AnalysisBase year =2012Percent
Change in2013Net sales7.1% Operating costs8.4%Earnings
before interest, taxes, depr. & amort. (EBITDA)(0.0%)
Depreciation and amortization0.0%Earnings before interest and
taxes (EBIT)(0.0%) Less interest (8.6%)Earnings before taxes
(EBT)(0.2%) Taxes (15.0%, 12.4%)20.9%Net income before
preferred dividends(3.2%) Preferred dividends0.0%Net income
available to common stockholders(3.2%)Balance Sheet Percent
Change Analysis (not in textbook)Base year =2012Percent

35. Change in2013AssetsCash and equivalents18.1%Short-term
investments21.7%Accounts receivable35.1%Inventories23.3%
Total current assets22.3%Net plant and equipment-0.6%Total
assets15.5%Liabilities and equityAccounts payable6.4%Notes
payable0.0%Accruals4.2% Total current liabilities5.0%Long-
term bonds27.5% Total liabilities12.6%Preferred stock
(2,00,000 shares: none issued)0.0%Common stock (616,756,134
shares oustanding 2013 and 612,191,412 outstanding in
20122.9%Retained earnings18.9%Total common
equity16.5%Total liabilities and equity15.5%DU PONT
ANALYSIS (Section 3.8) ROE =(Profit margin)(TA
turnover)(Equity
Multiplier)Nvidia201311.65%13.14%0.671.33Nvidia
201214.02%14.53%0.721.34Industry
Average20.72%19.96%0.631.65
NVIDIA 2009 2010 2011 2012 2013 -1.2E-2 -2.69E-2
8.6599999999999996E-2 0.15859999999999999
0.1165224952736322 AMD
2009 2010 2011 2012 2013 -2.1307 1.0742
0.56710000000000005 0.37730000000000002 -
1.1117999999999999 Intel 0.1293 0.1082
0.25159999999999999 0.27150000000000002 0.2266
ROE
(%)