Two publicly-traded U.S. companies for this project will be Amazon & Google.1 The two companies must prepare
Question:
Two publicly-traded U.S. companies for this project will be Amazon & Google.1
The two companies must prepare the financial statements denominated in U.S Dollar in accordance with U.S. GAAP and have non-zero, identifiable amounts of accounts receivable, inventory, cost of goods sold, operating income, and interest expense in the most recent annual reports.
The annual reports must be for a fiscal year beginning no earlier than June 1, 2020.
Perform the following:
1. Provide a brief (1-3 sentences) summary of the business of each company and a brief (one paragraph at most) description of the similarities and differences in the businesses of the two companies.
2. For each company, tabulate the 16 ratios indicated on pages 860-861 in the textbook using the financial results for the most recent fiscal year. Show your computations.
3. Evaluate the relative performance of the two companies using your findings from the vertical, horizontal (including an analysis of trend in various income measures over a period of a minimum of 3 years), and ratio analyses.
4. Report which of the two companies you would pick if you are to invest $100,000 cash on the stock of one of the two companies and hold the investment for a year or longer. Justify your choice.
Financial Reporting and Analysis
ISBN: 978-0078025679
6th edition
Authors: Flawrence Revsine, Daniel Collins, Bruce, Mittelstaedt, Leon