Homework: Case Study on Financials
Overview
Financial statements are reports that summarize all the accounting transactions that have taken place during a specific period of time.
Choose a publicly held company and, using the Internet, review its most current annual report. Evaluate the health of the corporation you picked based upon your analysis of its financial statements: balance sheets, income statements, cash flow statements, and statements of shareholders' equity. Then, research a similar sized competitor for comparison.
Task
Write 3 to 4 pages report suggesting ways to improve the company's financial health.
i. Conduct a vertical, horizontal, and ratio analysis on four financial statements.
ii. Compare the ratio, which includes liquidity, profitability, and solvency, with the industry benchmark and one other comparable competitor.
iii. Synthesize the results of the three financial analysis tests to determine the overall health of the organization.
iv. Present an accurate interpretation of the company's current financial health, including risks. Support your conclusions.
v. Recommend three ways to improve the company's financial health, including one example for each that has been used in the industry.
vi. Use three sources to support your writing, including the web address of your chosen company.
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.
The specific course learning outcome associated with this homework is:
i. Develop business recommendations based on the financial health of a company.