Financial analysis | Business & Finance homework help

Category: Business & Finance

Requirement:

Review the assigned company’s financial statements from the past three years.

 

Calculate the financial ratios for the assigned company’s (I will send it via homework market email once handshake is completed) financial statements, and then interpret those results against company historical data as well as industry benchmarks: 

 

  • Compare the financial ratios with each of the preceding three (3) years (e.g. 2014 with 2013; 2013 with 2012; and 2012 with 2011).
  • Compare the calculated financial ratios against the industry benchmarks for the industry of your assigned company.

Write not more than 750 words summary of your analysis.

Show financial calculations where appropriate.

 

 

Instructions:

 

The paper should include a ratio analysis of either your assigned US Corporation or your assigned International Corporation.  <I WILL PROVIDE THE COMPANY DETAILS IN THE HAND SHAKE>

Compare one of your assigned companies to a similar competitor: Pick a competitor that is the same size (in sales or assets) or in the same market as direct competitors.    

 

 

You don’t need to analyze all 30 ratios. You should select a few (say 2-3 max), some from each category – liquidity, leverage, turnover, debt service coverage, profitability/ROA/ROE and market value.  

 

For example, a service company (e.g. FedEx, Yahoo) doesn’t produce a product, so there is no inventory, thus an inventory turnover ratio would be meaningless. A company with little or no debt would have a debt-to-equity ratio that might not change much from year to year but might be interesting when compared to a company that is in the same industry and has lots of debt.   

 

 

Put small tables for each category in the paper and discuss each set.  Like this:

Debt Service Ratios

Debt Service

Debt to Worth

Coverage Ratio

NBR

DO

NBR

DO

2014

1.75

0.99

1.60

0.92

2013

2.10

3.62

1.94

3.55

2012

2.77

4.30

2.55

4.19

2011

1.72

4.49

1.57

4.37

Average

2.08

3.35

1.91

3.26

Industry

1.2

0.72

 

Or this:

 

 

Liquidity ratios

 

2010

2009

 

2008

Current ratio

Current Assets / Current liabilities

1.43

1.78

1.60

Quick ratio

Current asset – inventories / Current liabilities

1.37

1.73

1.65

Competitor

Current Assets / Current liabilities

1.34

1.36

1.38

 

 

 

DO NOT put huge tables in your paper as it is too hard to read and will cause you to lose points. 

 

You do need to compare the company to its peers.  If you don’t compare to a peer, you’ll lose points.  To find a competitor, type “Sony competitors” into Google: You’ll likely get results from Hoovers or Yahoo!Finance or similar sites.  

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