This assignment has three parts. Make sure to complete all parts.

Students will be studying two publicly traded firms, that would be considered competitors. $($Examples: Fed Ex and UPS, GM and Ford, Wal$-$Mart and Target, etc.$)$

All necessary information can be accessed using the "Data Mining" procedure using msn$.$com or some other site with similar industry average information.

PART A: Horizontal and Vertical Analysis

After accessing financial statements for both firms, the most recent two years of BOTH income statements and balance sheets will be used to perform vertical AND horizontal analysis, and answer these questions.

INCLUDE tables of both horizontal and vertical analysis.

For EACH company how would you assess changes$/$progress$/$deterioration using vertical analysis

For EACH company how would you assess changes$/$progress$/$deterioration using horizontal analysis

PART B: Ratio Analysis

For EACH of the two firms select TWO ratios from each of the following $6$ groups of ratios $($for a total of $12$ for EACH firm$),$ found on the msn site, and analyze both of them: profitability, management effectiveness, financial condition, growth, price, trading statistics

$1.$ Explain the formula to get the ratio $[$in words$]....$ not just a math formula; what does the ratio mean?

$2.$ Show the actual calculation by accessing the balance sheet and income statement on the same site.

$3.$ Compare to the firms industry average $[$see below$].$

$4.$ Make an assessment $[$good$/$bad$/$better$/$worse than industry average$].$

$5.$ Regardless of #$4$ above, what spe.cific management actions could the firm take to make the ratio better

$6.$ RISKS of management actions in #$5$ above.

PART C: Overall conclusion about EACH firms year to year progress AND about which of the two firms appears to be financially stronger and why? Which of the $2$ firms would you suggest investing in$?$