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Horizontal Analysis with the following information

I. Choice of Companies and an Overview of Their Operations and Industry – Briefly outline what each company does and its industry. (5 points)

II. Discussion of Current Issues Impacting Financial Statements – Include any relevant current event information, news that has affected financial statements, or world events that could impact the businesses. Research will have to be done on this. Some good sources of information include the most recent annual reports for each company (these can be found online for all publicly-traded companies; utilize the most current year-end annual reports available), Yahoo! Finance, the MSN Money website (this will provide current information on your company and some ratio information), and various business magazines. You can find the websites suggested under the Webliography tab in the course. (5 points)

III. Relevant Ratios and Discussion – List what ratios you think are relevant to your companies and industry. Go to the Excel spreadsheet in Doc Sharing, review the ratios listed under the ratio tab, and pick what you think may be relevant. In one to two paragraphs, briefly discuss ten ratios you think may be important, and include ratios from the different categories. The ratios will be automatically calculated on the spreadsheet (please see section IV regarding this). (10 points)

IV. Excel Spreadsheet FinSAS.xls – Manually input the financial data for your company under the input tab on the spreadsheet. You should insert numbers highlighted only in blue. These numbers should be found in the company’s most recent year-end annual reports (utilize the most year-end numbers; the spreadsheet has it starting at 2008, but change the year to 2009 and go five years historically from there to 2005), which can be obtained online under your company choice. Complete a separate spreadsheet for each company. Write that you completed the input for the spreadsheet for both companies and that the spreadsheet works. To check this, once you input the data in the input tab only, check the other tabs (ratio, vertical analysis) to ensure that you see the automated calculations. (20 points)
2. Vertical Analysis with the following information

I. Identification of Significant Asset Items, Liability Items, and Comments on Revenue and Profitability – List specific issues that you think affect these items. For example, economic factors, new product launches, and recent news developments can affect the items. Information can be obtained from annual report write-ups, financial notes, and the Internet. Briefly comment on how they affect financial numbers such as sales, profitability, costs, revenue, and so forth. (10 points)

II. Relevant Ratios and Discussion of Your Findings of Vertical Analysis – Discuss briefly your vertical analysis findings, which are calculated automatically on the spreadsheet under the vertical analysis tab. Then, identify any key ratios that you think impact vertical analysis. (10 points)

III. Excel Spreadsheet FinSAS.xlsx, Calculations of Vertical Ratio Analysis – This is a separate tab under the project spreadsheet and will calculate automatically, based on what you inserted in the input tab during Week 2. Ensure that it has calculated, and provide a brief analysis of your findings. The spreadsheet does not need to be submitted this week; just state that the spreadsheet is calculating correctly for each company. (20 points)
3. Final Ratio Analysis with the following information

I. Explaining Business Objectives and the Effect of the Objectives on the Ratios – Briefly highlight if the ratios meet the criteria of the business objectives. These objectives can be found in the annual reports under CEO comments and business summaries. (10 points)

II. Identification of the Three Most Important Ratios for Your Companies and Support – Include why you think these ratios are the most important; what do they indicate about the financial health of each company? All ratios should be automatically calculated based on your input sheet from Week 2. (10 points)

III. Computation of Relevant Ratios and Comparison to Industry Data – Verify that all ratios have been automatically calculated on the spreadsheet. On a separate document, list the ratios in comparison to the industry. Industry ratios can be found on various financial websites. The list should be in a table format, showing Company A, Company B, and then the industry ratio. (20 points)

a. Bibliography b. Other back material, as needed: detailed tables, extended quotations from which shorter quotes are taken, and so forth.
General Expectations from this assignment