Choice of two companies for Comprehensive project:
NIKE AND ADIDAS
The course project consists of a comparative financial statement analysis using all of the tools, methodologies and concepts mastered during the Financial Statement Analysis course using two publicly traded companies (large cap and/or midcap stocks) competing in the same industry.
The final project paper must be well organized, coherent,
• with a cover sheet,
• abstract,
• table of contents,
• an introductory statement,
• statement of objective,
• description of companies,
• business models,
• strategy and relevant industry,
• quantitative and qualitative analysis,
• an appendix with exhibits,
• charts,
• footnotes and
• bibliography.
The project is both historical and forward looking and should at a minimum address the following questions:
1) Who has been and who is the superior competitor? Why?
2) Are the companies presently valued properly and why or why not?
3) What are the growth prospects for the companies and which company is a better investment to add to an investment portfolio and why?
4) Which company has superior qualitative and quantitative accounting metrics? Why?
5) What non-accounting factors influence your prediction and decision? Why?
6) Which company exhibits superior corporate governance metrics and corporate social responsibility and how did this influence your decision?
7) What recent activities did the companies undertake, e.g., Mergers & Acquisitions activity that influenced your decision?
Words from Professor: For your final project, please focus on the seven-step framework for financial analysis. Follow that framework through for the industries and companies that you are analyzing. This should involve analyzing at least the prior two years of financials and projecting a pro forma for the next year.
Please provide rationales for your assumptions, to build your valuation cases. Also, build an argument for which (if either) of the two companies you would recommend investment into, including an in-depth analysis showing your financial ratio calculations.
(Notes: Six Step framework below: more on attached document)
1. Identify the economic characteristics and competitive dynamics of the industry in which a particular firm participates.
2. Identify strategies the firm pursues to gain and sustain a competitive advantage.
3. Assess the quality of the firm’s financial statements and, if necessary, adjust them for such desirable characteristics as sustainability or comparability.
4. Analyze the current profitability and risk of the firm using information in the financial statements
5. Prepare forecasted financial statements.
6. Value the firm
Notes to the writer: Hello, there, thank you so much for helping me with this capstone assignment. My professor is very strict about plagiarism so please make sure to cite everything correctly. Please feel free to use MLA format.
