Financial Statement Analysis Project

Objectives: Analyze financial statements using vertical analysis and calculate and use financialstatement ratios to evaluate a company.Overview of Assignment: You are required to work in groups for this assignment. I will not acceptindividual projects. Working in groups of 2 or 3, prepare a financial statement analysis on selectedpublically traded companies. Include a balance sheet, an income statement, and a statement of changes instockholders equityfor the companies selected. Prepare a vertical analysis of the income statement onlyfor each company represented in your group. Select one ratio from each category of ratios as noted belowand prepare each ratio selected for each company represented. Include in your analysis the inputs used inthe ratios. Do not just present final ratio results. If a particular ratio category is not applicable for acompany selected, state that the ratio is not applicable and explain why. However, you should bechoosing ratios that will work for the companies selected. Prepare a summary document detailing theresults of your analysis, including information on your observations based on the results of your verticalanalysis and ratio analysis. Include comparisons between the companies selected as part of yoursummary analysis. I expect this summary document to be approximately one page. Each group membershould be represented by a separate company, i.e. if there are two individuals in your group, you shouldhave two companies; if there are three individuals in your group, you should have three companies. Turnin one complete package with the deliverables noted below per group. This can be a paper document oran Excel document. The grade for each group member will be based on the complete package that isturned in.

Project Deliverables

1.Cover sheet listing each team member and companies selected.2.Balance sheet, income statement, and stockholders equity statementfor each company selected.3.Vertical analysis for each company selected for the most recent year.4.Ratios prepared for each company selected with detail as to the calculations for the most recent

year.5.Summary results document.

Ratio Categories (see page 802 in your textbook for full listing of ratios to select from):

Liquidity RatiosProfitability RatiosSolvency Ratios