The objective of the final project is to evaluate and interpret organizational financial information through basic financial analysis. The project requires you to use the financial reporting package of a publicly traded company. A careful financial analysis of the company must be completed, including the development of the common size statements and financial ratios. You will analyze this company against leading competitors in the same industry.
Complete the following steps:
- Obtain the most recent annual report for your company and two competitors.
- Develop common size financial statements for the 3 companies for the most recent 3-years available.
- Calculate financial ratios for a 3-year comparison - be sure to select financial ratios that are relevant to the industry selected. A minimum of 5 financial ratios must be presented. The financial ratios should be calculated - do not rely upon other finance website to obtain the general financial ratios.
- Prepare a financial statement analysis including charts and diagrams,
- Present the analysis in formal written format incorporating items 2 through 3 above.
The written analysis should be structured with the following sections for each company selected:
- Company Background. Overview of the company's history key products/services and operations. This summary should be at least 2 pages but no more than 4 pages.
- Financial Statements and Common Size Statements. Present and discuss the common size financial statements including significant trends or variances Financial Ratios. Calculate and discuss the three years of financial ratios.
- Overall assessment: Using the information gathered, present an overall assessment of the analysis. Be sure to identify the strengths and weaknesses identified as well as performance within the industry.
After analyzing each company, develop a final conclusion which includes a comparison/contrast of the financial analysis results. Be sure to fully support your conclusion by referring to the analysis provided. The final conclusion should be at least 2 pages.