Project Goal: Review the
financial health of two assigned companies with the ultimate goal of
recommending one of the companies to an investor.
I do not need an intro and conclusion. just need the below.
Vertical and Horizontal
Analysis of Income Statement and Balance Sheet: (6 page)
Horizontal analysis of income statement of Magna |
Horizontal analysis of Balance sheet of Linarma |
Vertical analysis of income statement of Magna |
Vertical analysis of Balance sheet of Linarma |
Discussion on importance of horizontal and vertical analysis |
Discussion on negative and positive trends |
Ratio analysis (7 page)
Calculate the:
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· Discuss and interpret the ratios that you calculated
and compare the liquidity, efficiency and productivity of PPE and Total assets,
receivables and inventory management and solvency of the two companies.
· Discuss any potential weak performance and risk based
on your calculations of the ratios for the two companies.
· Use the Dupont framework to analyze any difference in
the ROE of the two companies.
· Are there any factors that could be erroneously
influencing the results of the ratios you have calculated?
Recommendation & Conclusion (1
page)
· Based on your analysis, which of the two companies
would you recommend as an investment to a prospective investor?
· You must provide justification for your recommendation
based on your analysis of the 2 companies and any other relevant publicly
available information.