Assignment: Financial Performance Comparison
Throughout this course, you will prepare an evaluation that compares the financial performance of two companies of your choice. Be sure the selected companies are in the same industry. The more information available, the easier it will be to compare the financial performance of each organization.
This six-part assignment provides an opportunity to evaluate financial performance through three different lenses-manager, investor, and creditor. This evaluation uses multiple accounting methods, including vertical common-size analysis and ratio analysis, for each company. You will be asked speculate on horizontal and trend analysis in Topic 8.
Part 1: Liquidity Ratios
Review the ratios related to the liquidity of short-term assets and short-term debt-paying ability.
Select which liquidity ratios would be beneficial for a manager, investor, and creditor. Be sure to consider that a financial analyst uses multiple calculations to evaluate financial performance. Typically, one source of data is not reliable research. Compute the selected ratios. For each lens, provide a 250-500 word summary as to why these selected ratios are beneficial and what they reveal about both companies performance. Provide copies of financial statements using a link.Show your work.Explain any discrepancies, difficulties with data, or other relevant issues.
Prepare this assignment according to the guidelines found in the APA Style Guide, located in the Student Success Center. An abstract is not required.
Prepare your responses in Excel with each ratio on a separate tab. Include your summary on a separate tab in Excel.
You are required to submit this assignment to Turnitin. Please refer to the directions in the Student Success Center.
Part 2: Debt-Paying Ratios
Review the ratios related to debt.
Select which debt ratios would be beneficial for a manager, investor, and creditor. Be sure to consider that a financial analyst uses multiple calculations to evaluate financial performance. Typically, one source of data is not reliable research. Compute the selected ratios. For each lens(manager, investor, and creditor), provide a 250-500 word summary as to why these selected ratios are beneficial and what they reveal about both companies performance.. Provide copies of financial statements using a link.Show your work.Explain any discrepancies, difficulties with data, or other relevant issues.
Part 3: Profitability Ratios
Review the ratios related to profitability.
Select which profitability ratios would be beneficial for a manager, investor, and creditor. Be sure to consider that a financial analyst uses multiple calculations to evaluate financial performance. Typically, one source of data is not reliable research. Compute the selected ratios. For each lens (manager, investor, and creditor), provide a 250-500 word summary as to why these selected ratios are beneficial and what they reveal about both companies performance.. Provide copies of financial statements using a link. Show your work. Explain any discrepancies, difficulties with data, or other relevant issues.
Part 4: Investor Ratios
Review the ratios related to investors.
Select which investor ratios would be beneficial for a manager, investor, and creditor. Be sure to consider that a financial analyst uses multiple calculations to evaluate financial performance. Typically, one source of data is not reliable research. Compute the selected ratios. For each lens (manager, investor, and creditor), provide a 250-500 word summary as to why these selected ratios are beneficial and what they reveal about both companies performance.. Provide copies of financial statements using a link.Show your work.Explain any discrepancies, difficulties with data, or other relevant issues.
Part 5: Cash Flows
Review the ratios related to the liquidity of short-term assets and short-term debt-paying ability.
Select which cash flow ratios would be beneficial for a manager, investor, and creditor. Be sure to consider that a financial analyst uses multiple calculations to evaluate financial performance. Typically, one source of data is not reliable research. Compute the selected ratios. For each lens (manager, investor, and creditor), provide a 250-500 word summary as to why these selected ratios are beneficial and what they reveal about both companies performance.. Provide copies of financial statements using a link.Show your work.Explain any discrepancies, difficulties with data, or other relevant issues.
Part 6: Conclusions
Write a 500-750 word financial performance evaluation in which you explain how you rated and compared each company. Consider the three different lenses and how they influenced your overall opinion, specifying how your ratio comparisons informed each decision as a manager, investor, and creditor. Discuss which company is more appealing to you from the perspective of each lens. Do you feel that additional data are needed to form an informed opinion? What other information would you request to make your decision and why?What type of accounting methods would you use to make your decision? For example, why might a trend analysis for each company be helpful, and how would a trend analysis be used by each lens? Why might a horizontal analysis for each company be helpful and how would a horizontal analysis be used by each lens? Provide rationale.
Format your assignment according to the following formatting requirements:
1. The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also include a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
3. Also Include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.