1. Develop a Table of Contents for your final paper that reflects the flow, logic, and structure of the research paper.
2. Obtain the following information for both the selected company and the benchmark company:

The steps in preparation of financial analysis report include the following:

1. Obtain the balance sheet, income statement, and statement of cash flows for the past 2 years for both Walmart Inc, and Amazon. Download or read the firms’ annual report.
2. Conduct a comparative analysis, focusing on liquidity of Short-Term Assets, Long-term Debt paying Ability, Profitability, Asset Utilization/Management Efficiency and Market measures. ◾Review the 3 years of ratios for the selected company, compared to the benchmark company’s ratios, and determine what the ratios reveal about the financial health of the selected company.
3. Utilizing the information from the reports obtained in step #4 above:
4. Calculate 2-3 ratios per “financial diagnostic category" given in the table below.
5. Place your ratio calculations in the table for your selected companies—primary company and benchmark competitor.
6. The table below can be used and modified as needed. It is only offered as an illustration.

Following is the expected minimum content of the financial analysis report.

1. An overview of the corporation.
   • Provide general information regarding the type of business, products and/or services, location of headquarters, name of CEO, number of employees, and countries of operation, etc.
2. The latest fiscal year financial statements for both the chosen company and the benchmark company.
   • Insert the income statement, balance sheet, and statement of cash flows (as retrieved above from the SEC or company’s website) into the report.
3. Discussion/Overview of each of the latest fiscal year financial statements.
   • Discuss the overall financial results of the company as the financial statements indicate for the selected company.
4. Analysis of the company’s financial operations and status.
   • Utilize the ratios calculated and information gathered above to analyze and discuss the financial operations and status of the company as revealed by, or inferred from, the ratios.
   • Compare and discuss the selected company’s ratios to the benchmark company’s ratios.
   • Provide/compare “Industry Averages” for each ratio calculated for the selected and benchmark company.
5. Conclusions/Recommendations regarding the current and future operations of the company.
   • Summarize the key and specific financial conclusions for the selected company, utilizing the findings from the analysis above.
   • Provide any recommendations for the future that might be offered the company, based on the ratio analysis and conclusions.
   • Indicate if you would, or would not, invest your financial capital in the selected firm as a shareholder. You must provide support for your decision by using the numerical data and conclusions from your analysis.
   • Indicate if you would, or would not, invest your human and intellectual capital in the firm as an employee. You must provide support for your decision by using the numerical data and conclusions from your analysis.

Financial Diagnostic Categories	Walmart vs.	Amazon
1. Liquidity of Short-Term Assets	Current Ratio Cash Ratio Quick Ratio	Current Ratio Cash Ratio Quick Ratio
2. Long-Term Debt-paying Ability	Debt Ratio Debt-equity Ratio Times Interest Earned	Debt Ratio Debt-equity Ratio Times Interest Earned
3. Profitability	Net Income / Sales (Profit Margin) Net Income / Assets (ROA) Net Income / Shareholder Equity (ROE)	Net Income / Sales (Profit Margin) Net Income / Assets (ROA) Net Income / Shareholder Equity (ROE)
4. Asset Utilization / Management Efficiency	Total Asset Turnover Inventory Turnover Measures Accounts Receivable Turnover	Total Asset Turnover Inventory Turnover Measures Accounts Receivable Turnover
5. Market Measures	Price / Earnings Ratio Earnings per Common Share Dividend Payout	Price / Earnings Ratio Earnings per Common Share Dividend Payout

Answer rating: 100% (QA)

Solution Table of Contents Introduction Overview of the corporation Financial statemen... View the full answer