Assignment #1

Your grade will be based on:

1. Doing research (10K, online) and applying the course material.
2. Detail and depth in the quality of the submission.
3. Format and quality of the submission.
4. Meeting the deadline.

Format your written submission as follows

Write up a financial statement analysis using Word. The maximum length is 3 pages for the Word document - plus cover page and reference page. The cover page needs to have the title of the assignment, your name, the professors name, the course title, and the date. The submission needs to include headings and subheadings (to identify main topics and subtopics). References must be included with the appropriate information that enables the reader to locate the original source.

Background

For this assignment, you will compare Steel Dynamics INC to Arcelor Mittal.

Assignment

Download the latest 10-K for Arcelor Mittal. Create a table with the latest data for the last two years for Steel Dymnamics and Arcelor Mittal - Income Statement, Balance Sheet, Statement of Cash Flows. Write up a comparative analysis of the financial results answering the following questions.

You can add additional rows, columns and other data needed to explain your analysis.

	Comp A	Comp A	Change %	Comp B	Comp B	Change %
	Year 1	Year 2		Year 1	Year 2
Sales
Gross margin
Net Income
Cash from operating activities
Cash from investing activities
Cash from financing activities
Net Cash Flows

1. Find, reference, and discuss a recent article that describes why Arcelor Mittal and Steel Dynamics (a more recent article or analysis than earlier in the course) had such solid financial results (or not) in 2022.
2. How do the net incomes of the two companies compare? What does the trend appear to be? How do their margins compare?
3. How do the two companies cash flows compare? What does the trend appear to be? Do their operating cash flows cover their investing activities or did they have to finance their investing/operations with additional borrowing?
4. How has the stock of the two companies performed for the past year? Why do you think the two stocks have performed so different?
5. How does your company's P/E ratio compare to the competition and why?