1. Choose a company that you would like to research. It must be publically traded and have at least five (5) years of financial statements available. Avoid familiar firms (i.e. Apple, Google, Wal-Mart, etc).
2. Find the balance sheet and income statement for the firm for the last five years.
3. Download a Statement of Cash Flows from Morningstar for the most recent five (5) year period.
4. Chose a competing firm and download the balance sheet and income statement for the competing firm.
5. Prepare a Ratio Analysis for both your chosen firm and its competitor over the most recent year period. The ratio analysis should include the computation of at least the following ratios: Current, Quick, Inventory T/O, Fixed Asset T/O; Total Asset T/O, DSO, Debt Ratio, TIE, Profit Margin, ROE, ROA, P/E Ratio and Mkt/Book Ratio(Equity book value).
6.Collect industry ratios from online sources and the Almanac of Business and Industrial Financial Ratios found at the reference desk at the Holland Library.
7. Calculate the ROE for the most recent five year period.
8. Based on the analysis, form conclusions and recommendations about the immediate and long-term health of the company.