Examine the four primary financial statements for each firm and address the following:
- Statement of Cash Flows:
- Compare the statement of cash flows for the two firms, noting the major inflows and outflows of cash.
- Income Statement:
- Compare the income statements for the two firms, noting the issues each one faces regarding sales projections.
- Balance Sheet:
- Compare the balance sheets for the two firms, noting any issues each
firm may want to address regarding liability, and how each firm might
be impacted by increasing interest rates.
- Compare the balance sheets for the two firms, noting any issues each
- Shareholder Equity:
- Calculate the shareholder equity for each firm.
- Calculate the following ratios and trend analyses on each company:
- ROI analysis
- Ratio analysis, to include the following ratios:
- Profit Margin
- Return on Assets
- Return on equity
- Receivable Turnover
- Average Collection period
- Inventory turnover
- Current ratio
- Working Capital
- Debt to total assets
- Debt to equity
- Earnings per share
- Price to Earnings ratio
- Horizontal, vertical, and trend analysis of financial statements
- Compare and contrast the two firms in the context of the global
economy, noting which types of cultural differences might impact each
firm as it does business in other countries.- Include examples to illustrate your point.
- Compare and contrast each firm’s global strategic plan based on the information in the annual report from two years ago.
- Propose which company would be better to invest in, based on the
above comparisons. Your proposal should include the key metrics you used
to make your decision.