Week 2 Assignment – Case Study on Financials

Overview 

Financial statements are reports that summarize all the accounting  transactions that have taken place during a specific period of time.   

Choose a publicly held company and using the Internet, review its  most current annual report. Evaluate the health of the corporation you  picked based upon your analysis of its financial statements: balance  sheets; income statements; cash flow statements; and statements of  shareholders’ equity. Then, research a similar sized competitor for  comparison.

Instructions 

Write a 3–4 page report suggesting ways to improve the company’s financial health.  

1. Conduct a vertical, horizontal, and ratio analysis on four financial statements. 
2. Compare the ratio, which includes liquidity, profitability, and  solvency, with the industry benchmark and one other comparable  competitor.
3. Synthesize the results of the three financial analysis tests to determine the overall health of the organization. 
4. Present an accurate interpretation of the company’s current financial health, including risks. Support your conclusions. 
5. Recommend three ways to improve the company’s financial health,  including one example for each that has been used in the industry.
6. Use three sources to support your writing, including the web  address of your chosen company. Choose sources that are credible,  relevant, and appropriate. Cite each source listed on your source page  at least one time within your assignment. For help with research,  writing, and citation, access the library, or review library guides.

This course requires the use of Strayer Writing Standards. For  assistance and information, please refer to the Strayer Writing  Standards link in the left-hand menu of your course. Check with your  professor for any additional instructions.  

The specific course learning outcome associated with this assignment is: 

• Develop business recommendations based on the financial health of a company.