Instructions attached. Only needs to be 1-2 pages in length (single spaced) and your excel file with the ratios.
FINANCIAL ANALYSIS CASE STUDY Please complete the financial analysis detailed in the document below: Competing Firms Case Study X02.docx Actions The below file link has the list of the ratios that need to be calculated for each firm: Ratio Formulas v2.xlsx Below is a video example of doing financial ratio analysis: Case Study 1 Help Please use the following rubric when writing your report. COS Rubric for Effective Business Writing--2017.docx Actions You will need to submit a written report 1 to 2 pages in length (single spaced) and your excel file with the ratios you calculated. COS Rubric for Effective Business Writing (Content, Organization, and Style) Effective business writing “gets work done.” An effective business writer accommodates the reading style of busy, working readers and facilitates their reading purposes (generally and specifically). Business readers read to gather information for evaluation and decision making. They skim and scan documents to identify and “harvest” information they need. Well-written documents make this kind of reading easy for their audiences. Excellent Adequate Marginal Content “What is said.” · Demonstrates thorough and focused understanding of context and audience. · Clearly expresses and carries out the document’s purpose. · Employs sound logic supported by complete, accurate, and useful data, definitions, examples, and illustrations. · Demonstrates adequate understanding of context and audience. · Adequately expresses and executes the document’s purpose. · Employs good logic, using some relevant data, examples, and illustrations supportive of the audience and purpose. · Demonstrates minimal understanding of context and audience. · Has unclear expression and execution of the document’s purpose. · Has weaknesses in logic; is vague and unclear · Uses few effective and appropriate examples and illustrations. Organization “When and where it is said.” · Clearly states the document’s organization and purpose in an appropriate location. · Uses effective and appropriately ordered headings and subheadings as needed to guide readers through the document. · Applies emphasis techniques, topic sentences, and reader cues to lead readers quickly and easily to critical ideas and data. · Employs carefully organized sentences and paragraphs; uses transitions effectively. · Adequately states the document’s purpose and organization, but may not do so in the most-appropriate location or sequence. · Uses some headings to help readers find their way through the document. · Applies some emphasis techniques to help important ideas and data stand out to some degree for the reader. · Uses adequately organized paragraphs and some transitions between paragraphs and sections. · Doesn’t adequately present the document’s purpose and organization in an appropriate location. · Uses no headings when needed. · Doesn’t emphasize important information and fails to subordinate lesser ideas in sentences or paragraphs. · Presents ideas and information in a confusing order; ideas are not tied together well in paragraphs or in the overall document. Style (language usage, mechanics, and formatting) “How it is said.” · Uses language that is unbiased and concise, creates an appropriate tone, and draws the reader into the message. · Uses the most appropriate words for the context and audience. · Has no errors or only very minor errors in grammar and punctuation and in capitalization, number usage, spelling, and other mechanics. · Has a consistent point of view and mood. · Is formatted appropriately for the audience and for the document’s purpose. · Uses only some biased, wordy language or ineffective language; generally has appropriate tone. · Has some errors in grammar, punctuation, capitalization, number usage, and spelling. · Is generally formatted appropriately for the audience and the document’s purpose. · Has some inconsistencies in point of view and mood. · Has some formatting errors that don’t significantly distract the reader. · Frequently uses wordy, ineffective or biased language, including clichés and idioms. · Lacks reader focus and appropriate tone; has inconsistent point of view and mood. · Demonstrates only a little mastery of or concern for appropriate parallelism, number usage, and capitalization. · Misspells and misuses words and has frequent errors in punctuation and grammar. · Has errors in formatting that decrease the effectiveness of the document. Case Study FIN 3100Principals of Finance Financial Ratio Analysis Case Study (30 Points Possible) For this case study, you will choose two publicly traded firms that compete in the same industry and complete financial ratio analysis on both. Based on the ratios you calculate, you will compose a detailed memo addressed to the instructor summarizing your analysis and recommendation for which company would be the better stock pick long term. The deliverables for this assignment are a spreadsheet with your financial ratio calculations and a written memo. Spreadsheet (15 points possible) Your spreadsheet should include the following items: · 5 years of Balance Sheet and Income Statement data for both companies (financial information can be pulled from www.zacks.com or other financial websites) · Prepare a common size income statement and balance sheet for each · Calculate five years of financial ratios for both companies (must calculate sales and net income growth rates from year to year and all the ratios on the Ratio Formulas document on canvas under Files) Detailed Memo 1-2 pages long, single spaced (15 points possible) Your memo should include the following items: · A brief description of the two companies and the industry they operate in · Compare the financial results of each company and identify areas of strengths and weaknesses of each · Using the DuPont model, analyze the return on equity of each company (what factors and trends are affecting each company’s return on equity) · Given your analysis, which company would you recommend as the better investment option (must explain why)