Financial Statement Analysis Update/Test (for HomeworkHelp1234)

Company Analysis project – BSAD 245 – Fall 2013

Presentation guidelines:

1. Company information: A short paragraph or two about your company. Include what they produce, their business model, their industry and anything noteworthy about their company. Major shareholders, their headquarters, etc.

2. Include the financial statements (balance sheet, income statement, and statement of cash flows). You may want to common size the financial statements (turn the numbers into percentages as in a vertical analysis) to allow comparison with your industry group. Preparing a trend analysis at this point would be helpful.

Select financial data for each company. This is a high level snapshot of the organization’s financial situation over the last few years. It might include sales, operating income, net income, cash flows, assets, liabilities, equity, share prices, number of shares outstanding etc. This is meant to give the user a macro level observation of the organization; not a micro level. Comment on any items you find that are questionable or require additional research.

3. Ratio analysis. Calculate the ratios found on page 86-87; if you do not have the financial information to calculate some of the ratios skip them and focus on the remaining ratios. You should give a written analysis of each of the sections (liquidity, activity, debt, profitability, and market). Note any trends (positive or negative), compare your results to the industry averages for similar ratios and suggest any improvements.

4. Conclusion. Review all of the data that you have generated. You will probably find that there is a mix of positive and negative results. Answer the following question: “Based on everything I know about this company and its strategies, the industry and the competitors, and the external factors that will influence the company in the future, do I think this company is worth investing in for the long term?”

On the day of the presentations, you will meet with your group and each one of you will present your company. Then as a group you will discuss what you discovered about your industry and how the companies fit within that industry.

You will then have two days to finalize your report and then submit it on Canvas.