Ratio analysis project

Financial Analysis Project

Perform a financial analysis of your employer or if you are unemployed or not in the labor market, for a firm listed in the S&P 500. Select the latter if financial data for the firm you work for is unavailable. Topics for discussion will include:

1. (50 pts) Construct financial ratios to determine the firms liquidity, asset management, debt management, profitability, and market value. Analyze the ratios of the firm over a three-year horizon and compare them with that of the industry for the most current year available. You are to interpret the ratios to describe, in words, the state of the firm relative to the five areas of performance identified above. The analysis above is the critical component of this assignment.
2. (25 pts) If your company uses long-term debt, what is it's bond rating? How does this rating relate to the performance of your firms debt management in problem 1 above? In your opinion, do the numbers justify the ratings of the rating firm? Why or why not?
3. (15 pts) Read the annual report and the information available on FINRA and discuss the various financial and business risks faced by investors.
4. (10 pts) Attach the financial statements used as an appendix. (A hyperlink is sufficient)

Sources

Below are some suggested reference sources for your project:

• FINRA website (Refer to Moodle website for URL)
• Your companys annual report
• www.financialweb.com
• www.reuters.com
• http://finance.yahoo.com/