Nalysis of a companys financial standing
The assignment is to research the financial standing of your company by using information attained via financial statements, notes to the financial statements and other credible business publications or websites to take a stand on the pros and cons of the company from an unbiased and objective view. You will then prepare a comparative analysis for both the income statement and the balance sheet. This information should be based on the most recent quarters. Per chapter 14m to be used as a guide, the analysis will compare to a total of 3 quarters. You will first compare the most recent to the previous; then the previous quarter to the prior quarter. For example, if the 3rd qtr. is the most recent, you will compare the 3rd qtr. To the 2nd qtr. and the 2nd qtr. to the 1st qtr. The analysis shall be placed on an excel worksheet. There shall also be a 5 page double spaced type report of your findings. Included in your report, you shall discuss pros and cons of both the income statement and the balance sheet analysis. You shall take a position as to the companyas standing, where itas allocating resources, debt, revenues, expenses, R & D, etc., and support it.
1. Choose a NYSE publicly traded company of your choice and prepare a vertical and horizontal analysis for the three most recent quarters (ex: 1st and 2nd qtrs.; 1st qtr. of this year to the 4th qtr. of last year. Many may not have published 2nd qtr. statements yet).
Income statement Horizontal Analysis
Balance sheet Vertical analysis
2. Prepare a 5 page written analysis of pros and cons based upon information provided from the companyas management via the notes to the financial statements, your vertical and horizontal analysis and other credible business publication or websites.
3. Determine the following ratios (be sure to give specific dates when necessary):
Ratio of Fixed Assets to Long-Term Liabilities
Price Earning (P/E) ratio (specific date)
Earnings Per Share (EPS)