Select a company and a primary competitor of that company (Target and Walmart). View their most recent
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Select a company and a primary competitor of that company (Target and Walmart). View their most recent annual report on their websites in the investor relations area.
- Assess the nature of the operation of each company. Describe each company's risks as it strives for higher profitability and valuation in the financial markets.
- Present the past two years of financial statements (balance sheet and income statements) for each company in a table. Discuss the trends in the key metrics and the comparisons you can make between the companies from these statements.
- Recommend relevant financial ratios and compare these ratios across the two companies. Present the ratios calculations in a table format using Excel, and then copy and paste that table into your PowerPoint document. The ratios should include profitability, liquidity or short-term solvency, debt management, inventory management, accounts receivable management, and the decomposition of the ROE.
- Evaluate each ratio category and conclude which company appears to be healthier in the category. Be sure to spend meaningful effort to assess and discuss the ROE decomposition and the meanings you take from it.
Related Book For
Corporate Financial Accounting
ISBN: 978-1305653535
14th edition
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac
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