Assignment:
Drugstore Chains Excel example.
You are the assistant to the CEO of a major company. Your CEO keeps an eye on the competition, and asks you to do the following. Using ratio analysis, compare two major competitors in the same industry.
Pick any two U.S. public companies in the same industry (except Walgreen’s or CVS Drugstores).
Please use Target and Walmart.
You may obtain financial information and the companies' latest annual reports on the web directly from MSN Money or Yahoo Finance.
In fact, you can use the DrugstoreChains example as a template: just copy the financial statement data for your two chosen companies right on top of the existing financial statement data for the two drugstore chains.
For additional information, look for the SEC Form10-K link from one of the MSN Money or Yahoo Finance financial sites.
Instructions:
Create a single Excel file for the entire assignment. There are three separate financial statements to analyze:
a. The income statement,
b. The balance sheet, and
c. The cash flow statement.
You should calculate, and comment upon, all relevant financial ratios for the last 2 fiscal years, including market ratios (such as PE ratios and market to book value of equity) and a full DuPont analysis.
All financial statements used should be shown. All calculations should be shown, and all answers should be thoroughly explained.
Whenever you use balance sheet items to calculate ratios, for each year be sure to average the beginning-of-year and end-of-year amounts to get the average for that year.
What can you tell from your analysis? What are the strengths and weaknesses of each company? Which is the stronger competitor? Give your reasons.
Please review the document enclosed here:
Attachment:- Balance sheet.rar
Provide complete and step by step solution for the question and show calculations and use formulas.