-Choose a publicly traded company and two competitors and determine its industry. For example: Company: Target; Competitors: Kohl’s and Walmart; Industry: Retail.
-Provide an introduction about the company and its competitors including product information, current news, and an overall company background.
-Evaluate the company versus its competitors and industry in terms for each of the following categories: liquidity, profitability, solvency, and market ratios. Pick
two ratios per category
. Prepare ratio analysis for the most current
two
most recent years available. For example, for liquidity: current ratio and quick ratio.
-Prepare a common size analysis for the balance sheet and income statement for the company and its competitors for
two most recent years
.
-Lastly, would you invest in your company based on the ratio analysis and common size analysis?
Note: There are websites that you can download financial statements. There are also websites that contain financial ratios already calculated. You would just need to cite the website used, and download the ratios from the website and attach as an exhibit. Any calculations that you do in excel would be an exhibit as well. You would refer to these exhibits in your paper.
The purpose of this exercise to analyze the ratios, not necessarily calculate the ratios. The group will prepare a paper that is approximately 3-4 pages in length (this does not include exhibits). The group is also required to prepare a 10-15 minute PowerPoint presentation that will be presented in front of class.