Portfolio Project -
Perform an expanded analysis on the financial statements. Complete the following for Facebook in an Excel spreadsheet:
1. Horizontal and vertical analysis of the income statements for the past three years (all yearly balances set as a percentage of total revenues for that year).
2. Horizontal and vertical analysis of the balance sheets for the past three years (all yearly balances set as a percentage of total assets for that year).
3. Ratio analysis (eight ratios of your choosing) for the past three years PLUS a measurement for the creditworthiness of Facebook as measured by Altman's Z-score. You MUST also present industry-average ratios or current year competitor ratios for your ratio analysis. Comparing Facebook's ratios to a close competitor or an industry-average ratio makes your analysis much more meaningful.
Your instructor suggests that you start your ratio analysis with the four ratios found in the DuPont equation. If you discover a weakness in one component of the DuPont ratios, then it would make sense to look at ratios that are closely related to the troublesome ratio.
You will take the information in your spreadsheet, and use it to write a paper.
Directions:
The paper must:
- Be 5 pages in length.
- Include a proper introduction and conclusion.
- Include a reference page.
- Provide your reader with an overall understanding of the financial health of your chosen firm including the following:
- Discussion of the ratio analysis results, including rationale for the ratios chosen.
- Discussion of all horizontal and vertical analysis from above.
- Discussion of four items from the management discussion of the firm that support the conclusion formed in your discussion of the financial results.
Attachment:- Portfolio Project Assignment.rar