• Minimum of 4,000 words (DO NOT including the cover page, table of content, and reference page in your word count)
  • In past semesters, some students have complained about having a word count requirement. However, Ive tried having a page count requirement and too many students submit projects with a lot of charts, graphs and exhibits, and very little written analysis. Therefore, I moved to a word count requirement. Given all the items you need to include in this project, you will find it very easy to meet the word requirement.
• Must be single spaced
• Use 12-point Times New Roman font for the body of the project (you can use either 10- or 12-point font for the exhibits and tables)
• Must be a Word document
• Must have at least 5 sources (APA format) listed on your reference page.

Project Summary:

You will be analyzing and comparing the financial information (industry, corporate environment, ratios, financials, annual reports, etc.) for your two companies Adidas and Sketchers to determine which company is in a better financial position and/or is more viable, and why.

The project requirements are as follows:

• Cover page (do not include in your word count)
• Table of content (do not include in your word count)
• Reference page - A minimum of 5 references in APA format (do not include in your word count)
• Introduction of each company
• Business and Industry Environment: Include an analysis of the industry environment.
  • Discuss/include Porters Five Forces that confront both companies, and the strategies both companies have implemented to address them. Since both companies are in the same industry, the five forces they face should be the same or very similar.
  • Include a SWOT analysis for both companies. Even though the companies are in the same industry, their SWOT analysis should not be identical.
• Ratio analysis: Complete an analysis of both companies from the perspective of a financial analyst.
  • You may need to convert the financial data to US dollars to complete your ratio comparison. Please disclose this in your report and let me know what tool/method you used for your conversion process.
  • Choose a minimum of 7 ratios you feel are most relevant. PLEASE NOTE: You can use more than seven ratios, but 7 of the ratios you select MUST BE ratios covered in this course!
  • You can use Gross Profit, Gross Profit Margin, Net Profit, and Net Profit Margin in your ratio analysis; HOWEVER, they CAN NOT count toward your 7 ratios. If you use them, they must be in addition to the 7 other ratios you selected from this course. Gross profit and net profit are important metrics, so you should incorporate them in your analysis, but they are not new metrics that have been introduced to you in this class.
  • Your ratio analysis must include the following types of ratios:
    • 2 liquidity ratios
    • 2 solvency and/or leverage ratios
    • 3 profitability and/or coverage ratios
  • Make sure you include a RATIO TABLE or CHART to provide a comparison of the ratios for both companies.
    • The table should be a side-by-side comparison of the ratios of both companies.
    • The table should include the formula and your calculation for each ratio.
    • Some students list the side-by-side ratio comparison s in one table, and then show their calculations in another table, and that is fine. Select the format that works best for you, but you do need to provide both the ratio and your calculations!

• Provide a written analysis/summary of each ratio and your findings
  • What similarities and differences do you see in the ratios?
  • What do the ratios mean?
  • What is the industry average?
  • Which company is performing better?

• Include a summary or condensed Common-size Income Statement and Balance Sheet for both companies:
  • Use the statements for the most recent year available. Most companies should have 2020 available, and some will have 2021.
  • Provide a brief written analysis of the financial reports (Income Statement and Balance Sheet) for both companies
• Based on your research, tell me which company you feel is more viable and financially sound, and why. Are there any trends or current issues that are concerning to you or promising to you? Which company would you invest in or provide a loan to?