Financial Statement Analysis Executive Summary:

• Select two competing companies from the same industry (e.g., McDonalds vs. Burger King; Target vs. Walmart; etc.), and calculate the following financial ratios for them based on their most recent financial statements:
  1. Return on Equity
  2. Return on Assets
  3. Financial leverage
  4. Profit Margin Ratio
  5. Assets Turnover Ratio
  6. Current Ratio
  7. Quick (Acid-Test) Ratio
  8. Debt-to-Equity Ratio
  9. Cash Flow from Operations to Total Liabilities Ratio

• Discuss from an investors point-of-view which of the two companies you would rather invest. Please refer to the ratios/measures that you calculated. You may also include information and opinions about other factors (e.g., non-financial factors, market information) that influence your decision.