OVS BAT4M Summative Project Financial Statement Analysis

Overview

In this project you will select an industry, develop and implement a research plan, and organize a report that both verbally and visually expresses the results of your research.

Scenario

Imagine that you have a significant sum of money that you wish to invest. You have several options; you can choose a relatively safe investment, such as a GIC, which offers you a lower rate of return, or you can choose to take on some investment risk in the hopes of earning a higher rate of return by investing in stocks.

Requirements

You first need to select a company that is listed on the Toronto Stock Exchange (TSX). You will then prepare a report that analyzes the historic success of the company, the economic conditions of the industry, and the probable future success of the company. Your report must include the following components:

• A copy of a current Annual Report for the company you selected

• A description of the industry that the company operates in, for example; retail, mining, auto

  parts, etc., and an economic overview of where that industry is heading

• Visuals of the company and its results as compared to the industry as a whole, including graphs, tables, etc., if readily available on the internet

• An analysis of the companys annual report, including;

  • a horizontal analysis of at least one item from the companys financial reports

  • a vertical analysis of this company within this industry as a whole or as compared to a

    competitor

  • a ratios analysis involving at least one liquidity ratio, at least one profitability ratio, and

    at least one solvency ratio.

• An overview of the historic success of the company and a forecast about its future

• A final conclusion as to whether this company would be a good investment for your hard earned savings as opposed to a safer option with a lower return

• A Works Cited page in MLA format. Note that a minimum of three different sources must be used for your report.