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Choose two companies operating in the same industry. For example, Ross and TJ Maxx. You will answer the following: Perform FIVE (5) ratio analyses for
Choose two companies operating in the same industry. For example, Ross and TJ Maxx. You will answer the following:
Perform FIVE (5) ratio analyses for the recent two years of financial statements (Example: 2018 and 2017). Select two ratios from each liquidity and profitability and
- Perform five (5) ratio analyses for the last audited year’s financial statements (use the website provided in the last assignment). Select two ratios from each liquidity and profitability and one ratio from solvency ratios.
- Explain and interpret each ratio for both companies.
- Compare and comment on the performance of each of the companies for the year.
- Provide your overall opinion/assessment on the liquidity, profitability, and solvency of the companies.
- Perform a risk analysis of each company that discusses potential issues that could negatively affect key business initiatives or projects. Assess changes in the financial markets, legal liabilities, or any event that can disrupt business operations.
- 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.
- Indicate which of the companies a potential investor should invest in.
- 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.
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