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Select 2 publicly traded companies of your choosing. These companies MUST be: Competitors In the same Industry Have financial statements presented in English ( does
Select publicly traded companies of your choosing. These companies MUST be:
Competitors
In the same Industry
Have financial statements presented in English does NOT need to be a USbased company though AND
must be registered with and posted on the SEC search database EDGAR :
You MUST use the MOST RECENT annual K filing
Do NOT use a Q quarterly filing because you must compare ANNUAL K financial
statements of two companies
Select a combination of at least Ratiosfinancial statement line items specific lines in the financial
statement like cash or income to analyze from BOTH these companies items for each company
These ratios must include AT LEAST one ratio from THREE OR MORE of the below categories you
cannot ONLY analyze based on the Profitability Ratios for example, you must diversify your analysis:
Profitability Ratios ratios total to choose from
Asset Turnover Ratios ratios total to choose from
Liquidity Ratios ratios total to choose from
Solvency Ratios ratios total to choose from
Market Ratios ratios total to choose from
Up to of the items you're analyzing can be specific financial statement line items depreciation R&D
expense, etc.
I recommend you think of what ADDS VALUE, not what is the easiest to calculate if your analysis
doesn't add value, you won't receive a good score.
Deliver your analysis in the form of a Report with the following criteria:
Times New Roman or Arial font
This can be either single or doublespaced, but should not exceed pg
Your goal should be to answer the below questions:
As an investor, what company would you recommend investing in and why the
analysisjustification is most important
What recommendations do you have for the management of one of or both of the companies?
On the subsequent pages of the report after your analysis, please show:
Links to your financial statements in EDGAR
Write out and show your calculations for ALL of your ratio calculations FOR BOTH companies and
CLEARLY SEPARATE THE COMPANIES so I can tell which numbers go with which companies.
Include screenshots of the Balance Sheet & Income Statement for BOTH companies or at least
screenshots of the relevant portions where you're pulling your numbers from for your calculations
If you want additional guidance you can view this guided video where I walk you through searching
companies in EDGAR, etc.
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