Simulate the Role of a Credit Analyst

Task:$$Develop a written report. Choose two publicly traded companies within the same industry and conduct a thorough financial analysis to determine which is a more suitable investment based on an analysis of the firm's financial statements, financial ratios, and current industry and firm events.$$

Research Steps:

Company Selection: Identify two publicly traded firms in the same industry.

Data Collection: Gather annual reports, financial statements, and press releases for the past five years for each company.$$

Individual Analysis: Analyze each company's financial performance, focusing on:

LiquidityAsset managementDebt managementProfitabilityMarket value

Comparative Analysis: Compare and contrast the two companies, highlighting key differences and similarities.$$

Investment Recommendation: Determine which company is a better investment based on your analysis. Provide an extensive report on your findings $($as discussed above$).$

Written Report should include the following$($This report should be written as if you were working for an investment client.$$Use of outside analysis or information should be fully cited.$$You may use this information, but should justify why it was used and whether you concur with the findings$).$

Comprehensive Analysis: A thorough analysis of each financial area discussed in class: liquidity, asset management, debt management, profitability, and market value.$$You should dig deeper than the ratios.$$In other words, if leverage significantly increased, there should be an explanation of why.$$

Trend and Peer Analysis: Consider historical trends and compare performance to industry peers. It is anticipated this analysis will consider both trend and peer information.

Strategic Considerations: Discussion of planned expansions, acquisitions, mergers, or product changes should be discussed.$$ This information may be obtained through the firm's annual reports, news releases, or analyst opinions.

Industry Factors:$$Analyze relevant industry trends that could impact both companies.

Informed Opinion: The report should conclude with an informed opinion regarding which company would be chosen.$$

Financial Justification: Use financial data and analysis to support your decision.

External Research: Cite any outside sources used in your analysis.