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:
1. Company Selection: Identify two publicly traded firms in the same industry.
2. Data Collection: Gather annual reports, financial statements, and press releases for the past
five years for each company.
3. Individual Analysis: Analyze each company's financial performance, focusing on:
4.
o Liquidity
o Asset management
• Debt management
• Profitability
• Market value
4. Comparative Analysis: Compare and contrast the two companies, highlighting key differences
and similarities.
5. 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).
1. 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.
2. 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.
3. 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.
4. Industry Factors: Analyze relevant industry trends that could impact both companies.
5. Informed Opinion: The report should conclude with an informed opinion regarding which
company would be chosen.
6. Financial Justification: Use financial data and analysis to support your decision.
7. External Research: Cite any outside sources used in your analysis.
Essential Activities:
1.
2. Reviewing "Chapter 1: Interpreting Financial Statements (~20 pages) (LO1) (LO2)" will assist you
in completing the course project.
, 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:
1. Company Selection: Identify two publicly traded firms in the same industry.
2. Data Collection: Gather annual reports, financial statements, and press releases for the past
five years for each company.
3. Individual Analysis: Analyze each company's financial performance, focusing on:
4.
o Liquidity
o Asset management
• Debt management
• Profitability
• Market value
4. Comparative Analysis: Compare and contrast the two companies, highlighting key differences
and similarities.
5. 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).
1. 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.
2. 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.
3. 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.
4. Industry Factors: Analyze relevant industry trends that could impact both companies.
5. Informed Opinion: The report should conclude with an informed opinion regarding which
company would be chosen.
6. Financial Justification: Use financial data and analysis to support your decision.
7. External Research: Cite any outside sources used in your analysis.
Essential Activities:
1.
2. Reviewing "Chapter 1: Interpreting Financial Statements (~20 pages) (LO1) (LO2)" will assist you
in completing the course project.
