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Financial Analysis of a Firm Using Ratios

to start this assignment, please select two public companies that are similar in nature… Say Coke/Pepsi or Ford/General Motors or McDonald’s/Burger King. Then, go to…

to start this assignment, please select two public companies that are similar in nature… Say Coke/Pepsi or Ford/General Motors or McDonald’s/Burger King. Then, go to a financial web site such as Yahoo Finance or MSN Money and find their most recent financial statements; be sure to use financial statements from the same period (for example, FY 2019, or Quarter 1 2020) so that you can compare the same periods for each company. Refer to the required ratio list in the assignment and calculate all of these (sites like https://cpaclass.com/fsa/ratio-01a.htm, https://www.readyratios.com/reference/analysis/most_important_financial_ratios.html, and https://corporatefinanceinstitute.com/resources/knowledge/finance/financial-ratios/ may help with this). Finally, analyze each company in terms of these ratios and submit a report of your findings in PowerPoint format.
To complete this project, you must complete the following four steps:
Identify a company and one of its primary competitors to perform the financial analysis onComplete a full ratio calculation for both firmsAssess, interpret, and compare the financial ratios calculated for both firmsCreate PowerPoint slide show of your presentation
Overview of the firmIn this section, you will conduct research to provide a summary of the following:
Overview of the selected firms product & industryOverview of current financial health of the selected firmOverview of industry & any current trends potentially impacting the selected firmIdentified competitor and brief summary of that competitors products
Ratio CalculationIn this section, you must gather the most recent set of  financial statements on their selected firm and competitor firm and calculate the following ratios for each firm (Note: All calculations must be shown for credit):
Profitability ratios: operating margin, profit margin, return on total assets, basic earning power, return on common equityAsset management ratios: inventory turnover ratio, days sales outstanding, fixed asset turnover ratio, total asset turnover ratioLiquidity ratios: current ratio, quick ratioDebt management ratios: total debt to total assets, times interest earned ratioMarket value ratios: price to earnings ratio, market to book ratio
Financial AssessmentIn this section, you must assess, interpret, and compare the financial ratios calculated for both firms in step 2. you will perform a side-by-side analysis and address the following questions:
Which firm has better profitability ratios? Why?Which firm has better asset management ratios? Why?Which firm has better liquidity ratios? Why?Which firm has better debt management ratios? Why?Which firm has better market value ratios? Why?Based upon the ratio comparison, which is a better investment choice- the originally selected firm or its competitor? Why?
Presentation GuidelinesAll calculations must be shown for credit- calculations can either be embedded in the presentation or submitted as a separate Excel filePresentations must be in Power PointPresentations should be 15 slides maxAPA format must be used for all referencesanalyze each company in terms of these ratios and submit a report of your findings in PowerPoint format.

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