Financial statement analysis

Follow three public companies traded in the NYSE within the same industry. Analyze the last financial statements available of each company, focusing on the balance sheets, and answer the following questions:

i. How has each company been financed (debt vs equity)?

ii. Calculate each company’s debt-to-equity ratio.

iii. Compare the D/E ratios of the three companies and explain if you think that each company’s D/E ratio has been the best one in your opinion, or if it could be improved and how.

iv. Explain the advantages and risks that each company may have to face due to its D/E ratio.

v. Finally, have a look on the current stock price of each company. After the analysis made and considering the current stock

price, would you invest in each company or not? Explain why.