2nd version – Analysis of Two Companies Operating in the Same Industry

Choose two profitable, publicly traded companies in same industry. 1. Analyze firms’ financial statements and conduct comparative performance analysis using ratios.
Initial Steps:
1. Peruse annual reports at companies’ websites.
2. Use annual report to assess the companies’ business environment and performance
3. SWOT Analysis
2 Parts Are Required:
Part One:
1. Common-size balance sheet.
2. Common-size income statement.
3. Statement of Cash Flows Analysis
Part Two: Based upon your comprehensive financial analysis of the two companies, express your opinion as to:
1. Company with the better financial performance? Why?
2. Positioning of each company in the industry? Why?
3. Effectiveness of the companies’ management teams Why?
4. Each company’s position in the industry in 5 years
5. Two recommendations for each company to improve its performance.

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