Los Angeles Core Civics Financial Analysis

GEO Group

The GEO Group, Inc., headquartered in Boca Raton, Florida, is a publicly traded real estate investment trust that invests in private prisons and mental health facilities in North America, Australia, South Africa, and the United Kingdom. From 1994 to today, its stock price has grown from $1.00 to $11.86. The stock price was $15.67 just prior to Trump’s election in 2016 and grew to $31.00 by May of the following year. Coincidence?

Assignment – Core Civic

You can learn about the evils of slavery, lynching, and mass incarceration in your ethnic studies, history, criminal justice courses. But what about your accounting courses? Im not really qualified to talk about such subjects with any authority. I will leave that to experts in those other fields and classes. However, i know how to analyze financial statements, and understand that someone is profiting off of mass incarceration.

I want you to analyze Core Civic’s financial statements and prepare a report outlining the profits made from incarceration. Its up to you how to frame your report, what to analyze, what to argue….

If i was going to analyze this company, i would consider the following in getting started:

• What does the company do, meaning how does it make money?
• who owns the company?
• who profits from the company doing well?
• how much cash from operations is generated
• how many beds are required to breakeven?
• what are the differences between the company’s fixed costs from variable costs?
• what is the contribution margin?
• how much is the stock trading for? who are the major stockholders?
• how much revenue does the company earn?
• how does it earn revenue?
• How much does it cost to run the prisons?
• What have been the trends?
• what takeaways about the broader issue can you appreciate from review of this companies financial statements?
• Does this company hire out its prisoners to private companies? Because this is a huge issue in most states….. most prisoners get paid $0.20 to $1.00 per hour for their time?
• Does the company contribute to lobbyists? and if so which lobbyists?

You have complete control in this project. You take the lead. However, i dont want to see regurgitation of some basic financial statistics or a half ass analysis of the company. Black Lives Matter and i want to see a side of that movement that is not covered by the mainstream media. I also want to see you apply the concepts of this course to that topic. I doubt there is another class doing something similar.

Here is a link to Core Civic’s financial statements. http://ir.corecivic.com/static-files/78f48d3d-5df1-44e2-ba20-fce435193496 (Links to an external site.)

Deliverable

• Due July 24
• Worth 150 pts
• I want to see financial data folded into a narrative of some sort.
• IF you have ANY questions, please contact me.