annlAnliernlh mn You will complete a fundamental analysis for a company you have currently invested in, and one for a company you could potentially invest in. CRITERIA The work refers to multiple key elements from each the balance sheet, the income statement, and the key ratios The references to key elements are appropriate and valuable in analyzing the The work provides an accurate and complete analysisfreasoning for multiple components presented as evidence. CRITERIA The work evaluates and presents evidence to support its argument about the company's performance The work synthesizes content knowledge, evidence, and multiple pieces of information to generate claims about the performance and standing of the businesses in question CRITERIA The work articulates it's ideas with exceptional clarity as to ensure its audience deeply understands how the claim about the company was developed Income Statement: 1) How are it sales from year to year? a. What does it tell us? b. Why do we care? 2) How is its gross profit from year to year? a. What does ittells us? b. Why do we care? 3) Is the company profitable at all? a. What does it tell us? b. Why do we care? 4) Has its profit increased from year to year? a. What does it tell us? b. Why do we care? 5) Does the company seem to be controlling expenses well? a. What does it tell us? b. Why do we care? 6) Is the company retaining profit from year to year? a. What does it tell us? b. Why do we care? Balance Sheet: 1) Does this business having growing or shrinking assets? a. What does this tell us? Balance Sheet: 1) Does this business having growing or shrinking assets? a. What does this tell us? b. Why do we care? 2) What is the company's mix of assets? Current or long term? Inventory, receivables, or cash? a. What does this tell us? b. Why do we care? 3) Does the business have growing liabilities? a. What does this tell us? b. Why do we care? 4) Are the liabilities long-term or short-term? a. What does this tell us? b. Why do we care? 5) What's bigger, the liabilities section or the capital section? a. What does this tell us? b. Why do we care? Key Ratios to analyze: 1) How efficient is the company at generating profit what is the gross profit margin? What is the net profit margin? a. What does this tell us? b. Why do we care? 2) How efficient is the company at using money what is the return on capital employed? a. What does this tell us? b. Why do we care? 3) Is the company nearing bankruptcy, aka unable to pay off debt that will be due? What is the company's current ratio? What is the company's quick ratio? a. What does this tell us? b. Why do we care