QUESTION: Select an industry you are interested in and select two companies within that industry. Obtain their annual reports by going to each company's website and downloading the report for the most recent year. (On many companies' websites, you will need to visit the Investor Relations section to obtain the company's financial statements.)
For the two companies you selected , address the following:
- Calculate two ratios that measure the ability to pay current liabilities.
- Calculate at least two ratios that measure the ability to sell inventory and collect receivables.
- Calculate at least two ratios that measure the ability to pay long-term debt.
- Calculate at least two ratios that measure profitability.
- Calculate at least two ratios that help to analyze the stock as an investment.
Now that you have crunched the numbers, interpret the ratios. What can you tell about each company and its financial position? Is one company superior in terms of its financial position, or are both companies similar to each other?
The paper should be at least 1000 words written in APA format. Below is a suggested outline.
Introduction: Thesis Statement, Purpose, and Overview of the paper
Body: A summary of the article with the link to the site. Highlight the relevant elements. Relate to learning objectives.
Critique the article in terms of relevance to your learning objectives.
Conclusion: State what you learned. Recommend a course of action.