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Investment Recommendations The purpose ofthis assignment is to analyze the financial performance of a company to make recommendations to potential investors about the purchase of

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Investment Recommendations The purpose ofthis assignment is to analyze the financial performance of a company to make recommendations to potential investors about the purchase of stock. Studying all aspects of a company's financial statements is necessary in order to understand the nancial performance and health ofa company. This is particularly important for investors trying to determine whether or not to buy stock in the company. An investor has approached you about whether or not purchasing stock in the company would be a wise investment Using your financial analysis of the company. you will send a letter to the investor summarizing your ndings and explaining whether you recommend a stock purchase at this time. You will use information in the Form 10-Khttps://ww.sec.gov/edgar.shtml for the company you selected in the Topic 1 (Amazon) to complete this assignment Using the correct formulas and a separate tab for each analysis. calculate the following ratios using Excel: 1. Three liquidity ratios for the past 3 years 2. Three solvency ratios for the past 3 years 3. Three profitability ratios for the past 3 years Conduct research about a competitor company within the same sector using IBIS World and other topic resources. Complete a competitor analysis that includes a minimum of three ratios and compares your company to a competitor company using these ratios to determine financial performance as well as how the company rates compared to overall industry averages. Be prepared to justify your analysis by explaining your ndings. Using your research findings and analysis of company performance in relation to industry competitors, construct a 250-500 word letter making stock purchase recommendations for a potential investor. in the letter. address the following, referencing specic ratios and comparative numbers as appropriate. 1. Discuss the overall financial performance of your company in relation to industry averages and a specific competitor. Explain whether the company performed better or worse than the competition using specific numbers and providing an explanation of what the numbers illustrate. 2. Recommend whether the potential investor should purchase stock in your company and justify your recommendation based upon your research and analysis of the company ratios and industry competition. Submit the Excel le that contains your ratios and the Word file letter to your instructor. While APA style is not required for the body of this assignment. solid academic writing is expected, and documentation of sources should be presented using APA formatting guidelines. which can be found in the APA Style Guide. located in the Student Success Center. This assignment uses a rubric. Please review the rubric prior to beginning the assignment

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