Financial Statement Analysis
Financial Statement Analysis Select two companies and perform an in-depth financial statement analysis using annual data for the past 5 years. One must be a blue chip company listed in the Dow Jones Industrial Average. Data can be found at http://finance.yahoo.com (Links to an external site.) and/or https://www.sec.gov/edgar/searchedgar/companysearch.html (Links to an external site.). Your discussion and analysis of each company should include: · Company background · Industry outlook · Analysts’ forecasts · Revenue, price, and income trend analysis · Financial ratio analysis (use the Ratio Analysis Table; note that you will need to complete two charts, one for each company) · Altman’s Z-score calculation for at least three years · Discussion of any ethical concerns about this and explanation of what could be done to improve or promote ethical behavior Analyze the financial health of each company and make recommendations to Mr. Smith on whether or not each company would be a good buy and why. Your well-written draft should meet the following requirements: · Be two or three pages in length for the analysis and explanations · Be formatted according to the CSU Global Writing Center (Links to an external site.) · Include Excel spreadsheets with computations, using clearly labeled separate worksheets for each analysis (i.e. ratio analysis, trend analysis, Altman’s Z-score, etc.); these spreadsheets should be embedded in the Word document as an appendix after your analysis and explanations · Include a minimum of three credible references.