Financial Statement Analysis

FINAL ASSIGNMENT:

Follow three public companies traded in the NYSE that you would like to invest in, different from the ones analyzed in the Mid-Term Assignment. Analyze the last financial statements available of each company (income statements, cash flow statements and balance sheets), and answer the following questions:

1. At a first sight through the income statement, how are the results of each company (profits vs losses)?
2. How do you think, in your opinion, that the P&L results of each company could be improved after analyzing its income
   statement, taking into account the net sales and all costs and expenses incurred by the company?
3. Have a look on the three financial statements available for each company. Analyze and answer the following questions:
   1. The liquidity of each company through the liquidity ratios and explain your findings.
   2. The profitability of each company through the profitability ratios and explain your findings.
   3. The market value of each company through the market ratios and explain your findings.
4. Explain your conclusions of each one of the three chosen companies taking into account the analysis made above.
5. Would you invest in each one of these companies? Why?
6. Finally, have a look on the main financial journals. Which investment/s would you like to make and why?

Submission: deadline is Sunday 18th July, 2021 at 23:59 CET – Via Moodle (Turnitin).

Weight: 60% of your total grade for this subject.

Details and Formalities:

• The Assignment is an individual task.
• It shall be submitted in a word document format. If you need to attach some graphics or calculations you can do it as an appendix.
• Wordcount: 3,000 words.
• Cover, Table of Contents, References and Appendix are excluded of the total wordcount.
• Font: Arial 11 pts.
• Text alignment: Justified.
• The in-text References and the Bibliography have to be in Harvard’s citation style.