Assignment: Financial Statement Analysis
As a financial statement analyst, select two organizations in the same industry and analyze their financial statements over time. The financial analysis period must be, at a minimum, the three most recent years. Since you will be spending a considerable amount of time on the project, ensure that you pick organizations that interest you.
The Form 10-K reports, which the organizations filed with the SEC, may be the best place to learn about a particular industry, organization, and organizational strategy, and to obtain reported financial statements. The reports are accessible at SEC.gov website. An alternative means to obtain the report is by clicking on the SEC filings link on an organization's website to obtain the latest Form 10-K filings. You can also find current stock valuation and other relevant stock information from financial portals such as Yahoo finance, Google finance, and Reuters.
Your Portfolio Project must include the following for the two organizations (see below for more detail):
1) Executive Summary
2) Ratio Calculation
3) Ratio Analysis
4) Projected financial statements including income statements, balance sheets, and statements of cash flows
5) Your opinion on the overall financial health of each company
The executive summary should include an explanation of the business itself, background information on each company, including product lines, geographical locations and the company's position in the industry.
The Ratio Calculations should be done in a table in Excel and included with your submission. The following ratios should be included for each company and for 2 years:
o Working Capital
o Current Ratio
o Total Debt to Total Equity Ratio
o Times Interest Earned
o RNOA
o ROCE
The ratio analysis should include an explanation of the importance of each ratio, what the ratio tells you about each company, how the ratio changes from year to year, and which company appears better based on each ratio.
Format your assignment according to the give formatting requirements:
a. The answer must be double spaced, typed, using Times New Roman font (size 12), with one-inch margins on all sides.
b. The response also includes a cover page containing the title of the assignment, the course title, the student's name, and the date. The cover page is not included in the required page length.
c. Also include a reference page. The references and Citations should follow APA format. The reference page is not included in the required page length.