Summary of Deliverables
For this assignment, you will create one graded deliverable: (1) a 5-minute video which compares and contrasts the financial statements of three (3) companies and identifies at least one (1) area of concern (potential red-flag) for each company that may draw enhanced scrutiny from analysts who rely on these financial statements in forecasting future performance.
This is an individual assignment.
The financial statements for Deckers Outdoor Corp. (Ticker: DECK), Crocs, Inc. (Ticker: CROX), and Sketchers USA, Inc. (Ticker SKX) are available on EDGAR, a platform on the Securities and Exchange Commission site. Links to the relevant financial statements are also included here:
Deckers Outdoor Corp. –
Crocs, Inc. – Sketchers USA, Inc. –
1. Using the tools provided in this course, compare and contrast the financial statements of the three above companies for Fiscal 2021 (note that DECK’s FY ended on 3/31/22). Pay particular attention to year-over-year growth rates; managerial judgements and estimates; and differences in accounting methodologies (if any).
2. Based on the topics presented in this course, identify at least one (1) area of concern (potential red flag) for each company that may prompt additional scrutiny from savvy investors or analysts who rely on these reports to forecast future firm performance. Discuss the impact of these red-flags on the reported numbers and the implications for drawing conclusions based solely upon as-reported numbers.
3. Based on your analysis of these companies’ financial statements, make a prediction regarding which company is most likely to miss analysts’ targeted earnings forecast in the following reporting period.
1. Please note that you will not be evaluated on the basis of whether your prediction actually holds true, but rather on the logical presentation of your prediction based on your own financial statement analysis.
In summary, your presentation should include the following:
· Brief introduction
· Please note that there is no need to provide a thorough introduction of the three companies. Only present that which is relevant to your analysis.
· Succinct financial statement comparison and analysis
· Identification of potential red flags
· Prediction for future earnings miss
· Brief conclusion