Financial Analysis

VERTICAL ANALYSIS (COMMON SIZE)

A. BALANCE SHEET

Prepare a three-year vertical analysis* for the balance sheet items listed below for your company and its competitor.

*You may need to obtain previous years’ financial statements.

Suggested Format	2015	2014	2013
Cash & Cash Equivalents
Accounts Receivable
Inventory
Total Current Assets
PP&E
Intangible Assets
Total Assets
Accounts Payable
Total Current Liabilities
Total Long-term Liabilities
Total Liabilities
Retained Earnings
Total Stockholders’ Equity

Is the company improving or worsening over time? How does it compare to its competitor? Comment on any trends you observe. The comments should be at least ONE page.

B. INCOME STATEMENT

Prepare a three-year vertical analysis* for the income statement items listed below for your company and its competitor.

*You may need to obtain previous years’ financial statements.

Suggested Format	2015	2014	2013
Sales (Revenues)
Cost of Goods Sold
Selling, General & Administrative Expenses
Operating Income
Net Income
Dividends per Share

Is the company improving or worsening over time? How does it compare to its competitor? Comment on any trends you observe. The comments should be about ONE page.