Analyze the company’s performance relative to the industry average. The average should refer to the same period as the financial statements being analyzed (or as close as possible). Specifically, you should answer:
1. Why is benchmarking important in analyzing financial statements and evaluating a company’s overall performance? In other words, does analyzing a specific company’s financial statements in isolation provide you with sufficient information for analyzing its overall performance? Why or why not?
2. What do bench marking comparisons tell you about how the selected company is performing relative to industry peers? Support your answer with specific examples from your analysis and industry research.
3. How do your company’s financial statements compare to industry standards in terms of legally and ethically communicating necessary information to stakeholders? Justify your response using specific examples and referencing relevant legal and ethical guidelines.
Comparing Ford Motor Company and Toyota