Financial Statement Analysis
QUESTION
1. Use the same company selected for your Case Study 1 (amazon) project and a second company that is a direct competitor.
2. Obtain the basic financial statements for the two companies. Company annual reports are normally posted under the “Investor Relations” tab of their web sites. Alternatively, you can obtain annual reports of publicly traded companies through the Security and Exchange Commission (SEC) website—www.sec.gov. If you use the SEC site, go to Fillings/Company Fillings and search there. Annual reports are listed under the “10K” category.
3. Chapter 13 covers financial statement analysis. Read the chapter and become familiar with the different ways financial statements are evaluated and analyzed.
4. Complete the following analysis. Submit your analysis as a PowerPoint file and be ready to present your findings at the next class.
A. Provide a brief explanation of the reasons you selected these two companies.
B. Provide a brief summary of the history of these companies, their industry and what these companies do?
C. Select 6 different financial statement ratios and perform (demonstrate) calculations for each company. Be sure to include the calculation details, e.g. the financial statement amounts you used for your ratio calculations.
D. Describe what each ratio means. Compare the different types of ratios, and determine which company is in a better financial condition.
E. Look up and document the stock prices the date of the 10-K date and as of the current day. What change ($ and %) has occurred for each company?
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