financial Statement Analysis project

by / On July 1, 2021 / In Business and Management, Undergraduate

A. Key Items
Points: 70 Points

PowerPoint file for your presentation

Excel file to show your work and computations

B. Companies
First, pick 2 public companies within the same industry from the U.S. Fortune 500 Company List. See link below. These two companies need to be competitors of each other.

List of Fortune 500 Companies (Links to an external site.)

Second, choose one out of the following 3 types of analysis:

Horizontal/comparative analysis
Vertical/common-size analysis
Ratio analysis

https://www.zyxware.com/articles/4344/list-of-fortune-500-companies-and-their-websites
Website with list of the top 500 companies in America

Investors Relations
Then click on SEC Filings
Then filter for Annual Reports/10K (this is what you are looking for!)
Then download the PDF file and the XLS files
Read Item 7 and Item 8 from the 10K PDF file
Format and compute a)$ and % changes or b)common size % or C) ratios from the XLS file
Then copy and paste the excel work into PowerPoint for your presentation
Create charts/graphs that are applicable and complementary to your analysis
Dont make your slides too busy. Focus on key points, conclusions and take-aways
The slides should be polished, professional and succinct
C. Analysis
Things to consider while you are analyzing the financial statements:

1. Balance Sheet Analysis
In your comparative balance sheet analysis, some of the things you want to look at are:

How are the assets financed? How much by debt and how much by equity?
What are the major % increases on the balance sheet and why?
If there is a major change in cash, take a look at the statement of cash flows to explain the movement.
Did debt increase? Did equity increase? Whats causing these major changes?

2. Income Statement Analysis
Why is net income up or down? Is it related to lower or higher cost of sales/revenues and/or higher or lower operating expenses?
What is the % of net income for both companies? Which company has a higher % of net income and why?

3. Ratio Analysis
In your ratio analysis, you must calculate and explain for both companies: current ratio, working capital, debt ratio, equity ratio, gross margin, and profit margin and PE ratio. If the company has account receivables and inventory, then you must also include AR turnover and Inventory turnover.

For all analysis, first perform INTRACOMPANY analysis, then INTERCOMPANY OR COMPETITOR analysis. Lastly, summarize your findings and form conclusions and recommendations.

I have a sample of the presentation below, I just need the powerpoint.