Assignment:
Discussion-Financial Analysis
You have conducted a significant amount of research about how to analyze the financial health of a company. Now you are going to put all of your research and discussion into practice. Choose three ratios from each category (liquidity, solvency, and profitability). Calculate the financial ratios for each of your companies. Describe what the results of your calculations reveal about each of your three companies when compared with one another. Answer the following questions with clear explanations as to how you arrived at the answers:
1. Which company is more liquid?
2. Which company has the strongest net income?
3. Which company has the strongest solvency?
4. Which company is most profitable?
5. Which company would be the most solid financial investment? Why?
Be sure to cite any sources using APA style
Overview
You will assume the role of a financial analyst asked to evaluate three companies to decide which would be the best investment opportunity. You will use what you have learned about the financial statements, ratio analysis, and an understanding of what each account represents to make this decision. You will be using real financial statements, which are much longer and more detailed than what you have seen in your textbook. This project will take you past the numbers on the balance sheet and give you the opportunity to analyze what the relationship between the accounts tells financial statement users about companies' financial health.
Create a three page paper analyzing the financial strength of the three companies and discussing which company would be the most solid financial investment. You will answer questions about your analysis and then summarize your observations. Your paper must be in APA format, with correct in-text citations of quoted and paraphrased material with full citations on a references page