Homework: Financial Statement Analysis
Length: 1500 to 2500 words.
Consider the annual reports of Pfizer and AstraZeneca for a period of 4 years. Using the different financial ratios, we covered in this course you are required to i) critically evaluate the financial statements individually across the 4-year period and cross-sectionally and identify their main strengths and weaknesses, and ii) make recommendations for future improvement. Note: Students are expected to comment on the change of company financial performance (income statement) and position (balance sheet) during the 4-year period of examination by looking at the main accounts and how they have changed (information may be taken from the notes to the accounts). The aim of this homework is to familiarize students with the information content of annual reports.
Develop a deep knowledge of financial ratios used for evaluating companies.
Describe the importance of financial comparative analysis across an industry
i. Apply a more efficient and effective approach to interpreting and analyzing financial statements.
ii. Develop a deep understanding on how to compare companies in similar industries and form opinions as to the relative strength of one company versus another supporting these opinions with financial data.
Format your homework according to the following formatting requirements:
i) The answer should be typed, using Times New Roman font (size 12), double spaced, with one-inch margins on all sides.
ii) The response also includes a cover page containing the title of the homework, the student's name, the course title, and the date. The cover page is not included in the required page length.
iii) Also include a reference page. The Citations and references must follow APA format. The reference page is not included in the required page length.