Choose an industry and select two companies in that industry to analyze. Explain in 1-3 sentences why you made this choice.

Complete the following:
1. Choose an industry and select two companies in that industry to analyze. Explain in 1-3 sentences why you made this choice.
2. Obtain financial information for your companies. You can find financial information from the companies’ websites. Also, sites like https://finance.yahoo.com/ and https://www.readyratios.com/sec/ have basic financial statement data and analyses.
3. Using Excel, prepare a table computing the following ratios for the most recent fiscal year for both of your selected companies: return on equity, return on assets, net profit margin, current ratio, and the debt-to-equity ratio.
4. Select and calculate two additional ratios or analyses of your choice from the material. Explain in 1-2 sentences why you chose these two additional ratios.
5. Obtain industry averages or medians for all of the ratios and include these in your Excel table. Note common industry financial ratios are readily available with a Google search.
6. Which company is outperforming the industry? Explain in 2-4 sentences.
7. Which company would you be interested in further investigating (from a financial performance point of view)? Explain why in 1-3 sentences.
* Notes:
– Formatting is as important as the correct answer for this project. Your spreadsheet should be in good form, presented clearly, and labeled appropriately.
– In your spreadsheet, you MUST use formulas to calculate the company ratios. Projects submitted without formulas will receive NO credit.

Leave a comment

Your email address will not be published. Required fields are marked *