Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Important Notes: The answer must meet all requirements. I will not accept a plagiarism or a copy of any student in any way. Qualityisveryimportant. You

Important Notes:

  • The answer must meet all requirements.
  • I will not accept a plagiarism or a copy of any student in any way.
  • Qualityisveryimportant.
  • You will get good tip.

The question:

Select a company of interest to you and a primary competitor of that company. The companies must be publicly traded and they should not be financial institutions such as banks, insurance companies, or securities firms. They also must not be non-profit organizations. You might access www.hoovers.com and/or http://finance.yahoo.com for ideas about potential companies and competitor firms. After selecting a company of interest and a competitor, go to the investor relations area of the companies' websites and view their most recent annual report.

Write a typical analysis of a report in which you address the following:

  1. Assess the nature of the operation of each company. Describe the risks that each company seems to face as it strives for higher profitability and valuation in the financial markets.
  2. Present the past 2 years of financial statements (balance sheet and income statements) for each company in a single table. Discuss the trends you see in the key metrics as well as the comparisons you can make between the companies from these statements.
  3. Recommend relevant financial ratios and compare these ratios across the two companies. Present the ratios calculations in a table format using Excel, and then copy and paste that table into your report. The ratios should include profitability, liquidity or short-term solvency, debt management, inventory management, accounts receivable management, and the decomposition of the ROE.
  4. Evaluate each ratio category and form a conclusion regarding which company appears to be healthier for each category as well as overall. Be sure to spend meaningful effort to assess and discuss the ROE decomposition and the meanings you take from it.

Support your assessment with at least three resources. In addition to these specified resources, other appropriate scholarly resources, including older articles, may be included.

Your report should demonstrate thoughtful consideration of the ideas and concepts. Your response should reflect scholarly writing and current APA standards.

Support your report with at least three scholarly resources. In addition to these specified resources, other appropriate scholarly resources may be included.

Length: 10 pages (not including title and reference pages) And each page must have: 150 word at least.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Analysis for Financial Management

Authors: Robert C. Higgins

12th edition

1259918963, 9781260140729 , 978-1259918964

More Books

Students also viewed these Finance questions

Question

How does behavior-blocking software work?

Answered: 1 week ago