Students will obtain a public company’s most recent Form 10-K filing with the SEC and, using a team approach, prepare an analysis of business risks affecting the financial reporting process and develop an audit plan (overview level) for the company selected.

Analyze the company’s financial strength and compare it with two major competitors.

• Assess the financial strength of the company. Include the following ratios: liquidity ratios, leverage ratios, efficiency ratios, market value ratios, profitability ratios. You will need to show the calculations for these and interpret what they mean.
• How is the financial strength likely to change in the next year or so? Examples: Expansion or downsizing plans? Economic projections? COVID-19 concerns? Change in Value of stock?
• What are its sources of capital, and what is the value of the company’s capital?
• How have capital markets responded to the company in the last year? Explain.
• What is the quality of earnings?

Answer rating: 100% (QA)

Analyzing a Public Companys Financial Strength A Guide Analyzing a public companys financial strength is a complex task requiring careful examination ... View the full answer