Assessing Company Financial Performance

Choose two companies operating in the same industry and answer the following:

1. Perform five (5) ratio analyses for the last audited years financial statements . Select two ratios from each liquidity and profitability and one ratio from solvency ratios.

2. Explain and interpret each ratio for both companies.

3. Compare and comment on the performance of each of the companies for the year.

4. Provide your overall opinion/assessment on the liquidity, profitability and solvency of the companies.

5. Perform a risk analysis of each company that discusses potential issues that could negatively affect key business initiative or projects. Assess changes in the financial markets, legal liabilities or any event that can disrupt business operations.

6. Once you identify potential risks, prioritize them and provide ways to mitigate those risks, like how to avoid them or how to reduce their harmful effects, etc.

7. Indicate which of the companies a potential investor should invest.

8. Based on the opinion/assessment that you have provided, suggest and explain two ways to improve the current condition of the company that the investor should not invest.