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To obtain financial statement information, go to the website of your selected

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To obtain financial statement information, go to the website of your selected;company and download the most recent annual report, including the balance sheet and;income statement. Select one of the company?s main competitors and download the;respective annual report (balance sheet & income statement). In your analysis, follow the;below outline. For part 1), submit your calculations in an Excel file and for part 2);submit your write-up in a Word file.;1) Calculations (4 points);a. Common size statements: Do a common size balance sheet and common size;income statement for both companies.;b. Ratio analysis: For both companies, calculate the;? Liquidity ratios (current ratio, acid test ratio);? Leverage ratios (debt ratio, interest coverage ratio, cash coverage ratio);? Turnover ratios (inventory turnover, receivables turnover, total asset turnover);? Profitability measures (net profit margin, ROA, ROE);? Market value ratios (PE ratio, market to book value);2) Write-up (6 points): BA303 ? Business Finance;2;Your write-up should be at least 2 pages (size: 12, space: 1.5pt, excluding the questions);covering the below questions.;a. With regard to the common size balance sheet and income statement, can you identify;any (potential) problems the company you selected may be facing? Why are these;problems a threat to the financial health of the company? Comparing the common;size statements of your company with its competitor, what is your selected company;doing better/worse than its competitor?;b. With regards to the liquidity, leverage, turnover and profitability ratios, can you;identify any problems for your company? If yes, elaborate why these are problems.;Compared to its competitor, what is your company doing better/worse?;c. With regards to potential problems identified in a and b, what strategies would you;recommend the company to pursue in order to improve its situation? Your answer;may cover marketing, supply chain, inventory, finance, operations, HRM or any other;strategies you consider appropriate.;d. With regard to the market value ratios, what can you conclude about the expectations;of stock market investors for your selected company and its competitor? If there are;any differences between the two companies, where could they come from? Finally;looking back to your financial statement analysis overall, would you invest in this;company? Why/why not?;Additional Requirements;Other Requirements: all original work please

 

Paper#27832 | Written in 18-Jul-2015

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