Steps in preparation of financial analysis report: Select a publicly held company Select a benchmark firm to compare your company against. The benchmark firm is typically the largest competitor. Obtain the firms balance sheet, income statement, and statement of cash flows for the past 5 years. Download or read the firms annual report. Go to: http://www.sec.gov/edgar/searchedgar/webusers.htm Research EDGARs database for additional SEC report filings: 8-k, 10-Q. The following table is the type of Excel or Word table that should be used to gather and report your ratio and financial performance data. Note the 5 financial diagnostic categories that should be used in your analysis. Use 2-3 ratios per diagnostic category. Place your ratio calculations in the table for your selected companiesprimary company and benchmark competitor. Using 5 diagnostic categories, and 3 ratios to assess each category, results in 15 ratio measures per company that will be compared side by side. To validate your research, 5 years of data are required. Financial analysis report template follows. Financial diagnostic categories Chosen company vs. Benchmark competitor _ _ _ 1.) Liquidity of short-term assets _ _ _ 2.) Long-term debt-paying ability _ _ _ 3.) Profitability _ _ _ 4.) Asset utilization/ management efficiency _ _ _ 5.) Market measures _ _ _ Financial Analysis Summary. Based on your research and ratio analyses and calculations, comment on the following questions: -How well has management added value? -Is the company's financial performance improving? -Would you invest your financial capital in the selected firm as a shareholder? Why or why not? -Would you invest your human and intellectual capital in the firm as an employee? Why or why not