BUS700 – Capstone Unit 8 Assignment 2: Capstone Project- Final Paper This Final Paper and Presentation is about Stratasys Ltd. printing company, The paper needs to be very detailed in SMART objective
Unit 4 Assignment 4: Capstone Project
Stratasys. Ltd
Financial Considerations
Post University
BUS695 Capstone
MBA Concentration: Corporate Innovation
Paul Licon
March 30, 2025
Dr. Wayne Emms
Financial Aspects of Stratasys. Ltd
Capstone Project
Appraisal of the Project’s Financial Health
The financial health of Stratasys Ltd has been reviewed through data analysis from management and accounting practices. Fixed and variable costs, revenue sources, and cash flow management are evaluated in the start-up phase for fiscal responsibility and financial sustainability.
This includes reviewing revenue projections, structures, and profitability estimates.
Projected Revenue: $250,000 annually
Total Costs: $160,000 annually
Fixed Costs:
Rent & Utilities: $20,000/year
Salaries: $60,000/year
Insurance: $10,000/year
Depreciation: $5,000/year
Total Fixed Costs: $95,000/year
Variable Costs:
Materials and Supplies: $40,000/year
Sales Commissions: $15,000/year
Transportation: $10,000/year
Total Variable Costs: $65,000/year
Break-even Analysis: The break-even point is calculated to determine how long it will take to recover initial investments.
The break-even point is calculated as follows:
Break-even Revenue=Fixed Costs/ [1− (Variable Costs/Revenue)]
Substituting the above values:
Break-even Revenue=95,0001[1-65,000/250,000)] =$128,378
Thus, the project must generate at least $128,378 in annual revenue to cover costs.
A strong financial assurance ensures that the project remains viable and scalable.
2. Assessment and Interpretation of Financial Statements
Income Statement (Projected)
Category | ($) Amount
Revenue | $250,000
Fixed Costs | $95,000
Variable Costs| $65,000
Net Profit | $250,000 - ($95,000 + $65,000)-$90,000
Balance Sheet (Projected):
Assets | ($) Amount
Cash | $50,000
Equipment | $30,000
Liabilities | $25,000
Owner’s Equity | $50,000 + $30,000 - $25,000 =$55,000
These projected financial statements indicate that the project will maintain a strong financial position, with sufficient equity and a stable profit margin. The financial statements indicate whether the project is in a strong financial position and highlight areas needing improvement.
3. Application of Financial Performance Models
To evaluate financial performance, I applied the following models:
Break-even Analysis: As calculated, the project reaches break-even at approximately $128,378 in revenue. With projected revenues of $250,000 annually, the break-even threshold is comfortably achievable.
Net Present Value (NPV): Using a discount rate of 10%, projected cash flows of $90,000/year for 5 years result in an NPV calculation as follows:
NPV= summation of 1 to 5 [90,000/ (1+0.10)] −Initial Investment (assume $100,000)
This yields an approximate NPV of $241,186, indicating long-term profitability.
Return on Investment (ROI) Measures financial returns based on initial capital investment.
ROI is calculated using projected net profit and initial investment:
ROI=Net Profit/Investment×100=90,000/100,000×100=90%
Reference
Financial information. (n.d.). Stratasys Ltd. https://investors.stratasys.com/financial-information
STRATASYS LTD. (2015). FORM 20-F. In Annual and Transition Report [Report]. https://www.annualreports.com/HostedData/AnnualReportArchive/s/NASDAQ_SSYS_2014.pdf
Stratasys Ltd. (SSYS) Income Statement - Yahoo Finance. (n.d.). Yahoo Finance. https://finance.yahoo.com/quote/SSYS/financials/
Stratasys releases the fourth quarter and full year of 2024 financial results. (2025, March 5).
Businesswire.https://www.businesswire.com/news/home/20250305116042/en/Stratasys-Releases-Fourth-Quarter-and-Full-Year-2024-Financial-Results
UNITED STATES SECURITIES AND EXCHANGE COMMISSION. (2020, December 12). https://www.sec.gov/Archives/edgar/data/1517396/000121390021012467/stratasys3639044-20f.htm
