This course requires an individual financial analysis project. This is really a continuation of material from FIN 305 as I am asking you to analyze a company using the traditional tools of ratios and a common size Income Statement. For those who may no longer have access to their FIN 305 text, I will be posting the sample Income Statement, Balance Sheet, Common Size Income Statement, and ratio analysis that was in the FIN 305 text in Course Documents no later than week 3. Additionally, in item III G. on the outline included in this module you will see that I have asked you to evaluate the firm’s capital structure (the proportion of debt vs. equity).
Your report must be a PowerPoint presentation – use as many slides as necessary, but please don’t get carried away. Also remember that PowerPoints are not meant to be “paragraph after paragraph” of writing, but rather the highlights of your findings which will be mostly in bullet-point format. You may need to explain some of your findings in more detail of course and I am looking for an analysis that would include the “so what” of your findings.
All ratios must be calculated and the common-size income statement must be created by you, not copied and pasted from anywhere. You must show your calculations (either in the powerpoint slides with the numbers or at the end as an appendix). I would like to see the formulas you used and the numbers.
What you should do by week 2 is select the two publicly-traded companies you will be using for your project. Note that they should NOT be financial institutions. Also please do not use Amazon, Wal-Mart, K-mart, Coke or Pepsi. I’ve seen too many of these! You will use their 10-k annual reports to analyze a minimum of the last three years (five is preferred). They must be recent years. Anything prior to 2018 will NOT be accepted.
********Companies chosen are Home Depot and Lowes******
