analyze financial ratios

(MAXIMUM length {There is value in quality brevity}: 1 page writing single-spaced, 1 page of charts/graphs)

This goal for this part of the project is to analyze a public firm from a financial perspective and give some insights on the financial health of the firm. Choose any public company

(i.e. trades on a stock market) and look up their financial statement ratios. Look up their competitors.

Give me a very brief overview of what the firm does. Consider one scenario below to give context to your analysis (or another you create).

a. Pretend you are the financial manager… based on the ratios you chose, what is your assessment of the overall firm? Recommend your strengths, weaknesses, where to improve and how to?

b. Pretend that I am an uninformed investor that currently owns 10,000 shares of the company you choose. Then, perform an analysis to give a recommendation to me, the investor, on whether I should buy more shares of this firm or sell the shares I currently own based on your analysis.

i. In either case, I expect to see rational, and coherent, arguments as to why the company is “good” or “bad”; meaning you should be explaining the importance of the ratios and what they mean. Utilize financial statement ratios for the firm, the competitors, and any other relevant information you see fit.

(4 ratios; 4 competing firms).

Tips: Google Finance to find company and competitors

Morningstar to find ratios

0 replies

Leave a Reply

Want to join the discussion?
Feel free to contribute!

Leave a Reply

Your email address will not be published.