you will be conducting an investor analysis

Briefly describe the company's industry, markets, products, and specific lines of business.Discuss its strategy for success and, most importantly, the sustainability of profits generated by the strategy.Refer especially to business description and risk factors of your company's most recent 10-K (MD & A Analysis).You may also use information from the company website.

Notes to the Financial Statements

Discuss key aspects of the information provided in the company Notes to the Financial Statements. Address the following three areas:

• Significant Accounting Policies
• Contingent Liabilities (if any)
• Other specific notes that stick out as interesting or potentially significant to the business and/or important to investorssuch as M&A, R&D, business reorganizations, etc.

Discuss how this information is helpful for assessing the financial health of the company.

Financial Analysis Techniques

Discuss at least 3 techniques of financial analysis (one must be ratio analysis). The techniques chosen can be either quantitative or qualitative. Comment on the pros and cons/limitations of each technique.

Ratio Analysis & Common Size Statements (Trends)

(1) Using Appendix 5: Summary of Financial Ratios, choose two ratios from each category (liquidity, activity, leverage, profitability, and market). You will have a total of 10 ratios for each of the three years presented. Display ratios in a chart as follows.

Use the three most recent completed years for which financial statements are available.

20XX (1)

20XX (2)

20XX (3)

Liquidity

Ratio 1

Ratio 2

Activity

Ratio 1

Ratio 2

Leverage

Ratio 1

Ratio 2

Profitability

Ratio 1

Ratio 2

Market

Ratio 1

Ratio 2

(2) Create a common size balance sheet and income statement for the same 3-year period.

(3) Discuss the overall results of the ratios and common size statements. Be specific and thorough. It's okay to speculate about what the numbers may mean and the potential impact on the company. What trends do you notice?

Industry Comparison

Search the company on the MSN Money website. Find the industry ratios for the following:

• Current Ratio
• Debt to Equity Ratio
• Return on Assets
• Return on Equity
• Inventory Turnover
• Asset Turnover

(1) Display the ratios in a chart as follows:

(Use the most recent year for which financial statements are available.)

Company

Industry

20XX

20XX

Ratio 1

Ratio 2

Ratio 3

Ratio 4

Ratio 5

Ratio 6

(2) Compare and contrast the company with the industry ratios.

Overall Assessment of Company