Financial Analysis Project
Perform a financial analysis of your employer or if you are unemployed or not in the labor market, for a firm listed in the S&P 500. Select the latter if financial data for the firm you work for is unavailable. Topics for discussion will include:
(50 pts) Use financial ratios to determine the firm’s liquidity, asset management, debt management, profitability and market value. Analyze the ratios of the firm over a three-year horizon and compare them with that of the industry. You are to calculate the ratios and compare them to the published ratios. Once that is done,interpret the ratios to describe in words the state of the firm relative to the five areas of performance identified above.
2. (25 pts) If your company uses long-term debt, what is its bond rating? How does this rating relate to the performance of your firm’s debt management in problem 1 above? Do the numbers justify the ratings of the ratings firm? Why or why not?
3. (25 pts) Discuss the various financial and business risks faced by investors. Use Annual report or 10K report found the SEC website. (You may access this link from Yahoo!Finance.com
Below are some suggested reference sources for your project:
? Your company’s annual report