Assignment 1: Financial Statement Analysis and Interpretation of the Results • Select two different corporations (from the same industry) publicly traded in the US Stock Exchange Markets. (NYSE, NASDAQ) o Make sure the companies you select are traded in same currency (USD, Euro, GBP) o Please get the approval for the names of the firm before you start your work. • The analysis of same company by different students will not be graded • Download the necessary financial statements for the companies for 2021 and 2020 o For data collection you can use: finance.yahoo.com or finance.google.com Part 1: Apply the financial analysis for the last two years using ratios covered in Chapter 3. Use excel formulas for calculation of the ratios on a separate sheet (manual calculations will not be graded!) You are not responsible for Part 5 (V. Market Value) ratios Some companies may not have all the data due to their variations in industries. If you face missing data just skip that ratio (mention as "no available data") TABLE 35 Common financial ratios L Short-term vency, orqaty, ratios Current ass Currentritio Current bes Currents-entury Quick ratio- Cash Curent Totaldobtrato- Long term solvency, or financial leverage rates Total assets-Tots equity Total Debt-equityrato-Total duct/Total equy Equity muloqty Times interest earned . Payabios turmover Cument Cash ERIT ESIT. Deprec Interest Cash coverage ratio- Asset utilization, or turnoveratos inventory tumor Cost of goods said Evertory 365 Gays Inventory tumover Accounts receivable Cot of goods sold Accounts payabia Day sales in rece 265 days Day sin pys Sumover Totalt tumover Capty N Proty ratio Pice-mings at Net Income Ram on ts (ROA) Pices te Sales Total as Total Buton tyROE) ROE Market Ma to book a EBITDA- Sols 305-days Total assuts income Tatal aguty Price per share Langs per shars Price per share Ses per share Book ve per she Enterprise value ERITOA Part 2: Analyze the "profitability ratios" of the companies you selected. (only profitability ratios!) Prepare a report on the selected companies: 1. Comment on profitability ratios for the firms separately (one by one) Compare year 2021 vs 2020 for each firm. What was the position of the company by the end of 2021 and what happened in 2020. o What could be the probable causes of the changes 2. Compare the two companies' profitability ratios for the year of 2021. (only 2021) How you can interpret the differences of profitability ratios of these two companies. Please upload your ratio analysis in MS Excel (xlsx) and interpretations of ratios in Portable Document Format .pdf format. Submit both files for your assignment to this section (excel calculations and interpretation) please do not print or send as e-mail

Assignment 1: Financial Statement Analysis and Interpretation of the Results • Select two different corporations (from the same industry) publicly traded in the US Stock Exchange Markets. (NYSE, NASDAQ) o Make sure the companies you select are traded in same currency (USD, Euro, GBP) o Please get the approval for the names of the firm before you start your work. • The analysis of same company by different students will not be graded • Download the necessary financial statements for the companies for 2021 and 2020 o For data collection you can use: finance.yahoo.com or finance.google.com Part 1: Apply the financial analysis for the last two years using ratios covered in Chapter 3. Use excel formulas for calculation of the ratios on a separate sheet (manual calculations will not be graded!) You are not responsible for Part 5 (V. Market Value) ratios Some companies may not have all the data due to their variations in industries. If you face missing data just skip that ratio (mention as "no available data") TABLE 35 Common financial ratios L Short-term vency, orqaty, ratios Current ass Currentritio Current bes Currents-entury Quick ratio- Cash Curent Totaldobtrato- Long term solvency, or financial leverage rates Total assets-Tots equity Total Debt-equityrato-Total duct/Total equy Equity muloqty Times interest earned . Payabios turmover Cument Cash ERIT ESIT. Deprec Interest Cash coverage ratio- Asset utilization, or turnoveratos inventory tumor Cost of goods said Evertory 365 Gays Inventory tumover Accounts receivable Cot of goods sold Accounts payabia Day sales in rece 265 days Day sin pys Sumover Totalt tumover Capty N Proty ratio Pice-mings at Net Income Ram on ts (ROA) Pices te Sales Total as Total Buton tyROE) ROE Market Ma to book a EBITDA- Sols 305-days Total assuts income Tatal aguty Price per share Langs per shars Price per share Ses per share Book ve per she Enterprise value ERITOA Part 2: Analyze the "profitability ratios" of the companies you selected. (only profitability ratios!) Prepare a report on the selected companies: 1. Comment on profitability ratios for the firms separately (one by one) Compare year 2021 vs 2020 for each firm. What was the position of the company by the end of 2021 and what happened in 2020. o What could be the probable causes of the changes 2. Compare the two companies' profitability ratios for the year of 2021. (only 2021) How you can interpret the differences of profitability ratios of these two companies. Please upload your ratio analysis in MS Excel (xlsx) and interpretations of ratios in Portable Document Format .pdf format. Submit both files for your assignment to this section (excel calculations and interpretation) please do not print or send as e-mail

Century 21 Accounting Multicolumn Journal

11th Edition

ISBN:9781337679503

Author:Gilbertson

Publisher:Gilbertson

Chapter7: Financial Statements For A Proprietorship

Section: Chapter Questions

Problem 1CS

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