To Prof. Tirimaba Obonyo
Phase 2: Collect data
To complete this project, I would retrieve financial data and information from 10Ks that provided by the SEC Edgar system and companies’ official websites. Balance sheets and income statements in the most recent three years are required. Besides, those statements are helpful for me to analyze and compare financial status of the two companies. Only analyzing financial data is not enough, I should also pay attention on big events and management’s analysis in the two companies and industry of building construction so that I can understand their financial status better.
Phase 3: Process data
I will process data from phase two to generate all ratios. Excel would be the best tool to exhibit data, results and differences between the two companies. To highlight the differences, constructing graphs or diagrams in Excel is helpful. Furthermore, I need to adjust financial statements and set up common-size statements, which are useful to make forecasts. Overall those data, I can learn about financial situation of the two companies in the last three years, such as their profitability, liquidity, solvency and leverage, and I would predict those ratios for next few years.
Phase 4: Analyze/interpret the processed data
I will interpret my output by establishing graphs that display how ratios changes during the most recent three years and analyzing reasons for the ratios. Also, the forecasts that depend on data would be interpreted so that investors can make better decisions.
Phase 5: Develop and communicate conclusions and recommendations
I will generate a project that answer questions in phase one. It states adjusted financial statements, common-size statements, ratios and forecasts of the two assigned companies. Moreover, comparison of the two companies would be shown and explained. I would give my recommendation relies on conclusions, such as whether to make an investment or grant credit.