Pick a publicly traded company of your choosing. Identify their major publicly traded competitor. For both companies download the last three years of their financial statements. Using the financial statements calculate the following ratios for each company for each of the last three years. In total you will calculate each ratio 6 times.
Current Ratio
Debt to Equity
Inventory Turnover
Profit Margin
Price to Earnings Ratio (You will need to use a finance website to locate historical stock prices that match the statement date)
Return on Assets
Return on Equity (Including DuPont method)
Once you have the ratios format them in a professional table that you will use in your final paper. The paper should be a minimum of 1500 words in APA format and use the following outline.
Introduction to your company (Min 250 words)
Introduction to your competitor (Min 150 words)
Ratio and trend analysis (Min 100 words per ratio)
ROE and DuPont Analysis (Min 200 words)
Conclusion and recommendation (Min 300 words)
Your conclusion should summarize the companies performance, include what you think is the intrinsic value per share, and a discussion if you think the stock is a Buy, Hold, or Sell.