The Project Is An Exercise Of Fundamental Analysis Of A Firm

The Project Is An Exercise Of Fundamental Analysis Of A Firm Using Rat The project is an exercise of fundamental analysis of a firm using ratios. You are expected to calculate a number of ratios for a firm and analyze its financial condition. As the main outcomes of the project, upload 2 files on Canvas: Project Report (word/pdf) and Calculation (excel). Pick a prominent non-financial public firm (EXCEPT WALMART) from any industry. Calculate the following ratios for your chosen firm for 2019 and 2020 (if data for 2021 is available, use 2020 and 2021 data): Liquidity Ratios : Current Ratio, Quick Ratio, Cash Ratio Solvency Ratios : Total Debt Ratio, Debt-equity Ratio, Times Interest Earned Ratio Turnover Ratios : Inventory Turnover, Receivables Turnover, Total Asset Turnover Profitability Ratios : Profit Margin, Return on Assets (ROA), Return on Equity (ROE) Market values Ratios : Price-earnings Ratio, Price-sales Ratio, Market-to-book Ratio Investigate the firm’s financial condition in 2020 by comparing it with 2019 in terms of liquidity, solvency, turnover, profitability, and market values through the analysis of the calculated ratios. Comment on how the firm’s performance changed over time and discuss the future prospects of the firm from an investor’s viewpoint.

Ensure your submission is original, in accordance with university academic integrity policy. Show all calculations in an Excel file, including the financial statements (Income Statement and Balance Sheet).

Calculate all ratios using Excel formulas from this data. Use a Word/PDF document for the analysis report.

There is no page limit; the length should reflect the depth of analysis and work involved.

For both calculations and analysis, extensively use content from Chapter 3: Working with Financial Statements. Utilize reliable web sources such as Bloomberg, Yahoo Finance, Edgar, etc., for obtaining financial statements. The project grade depends on accuracy, analysis quality, completeness, organization, writing clarity, and relevance.

Paper For Above instruction The purpose of this project is to conduct a comprehensive fundamental analysis of a non-financial, publicly traded firm by calculating key financial ratios and interpreting their implications for the firm’s financial health and future outlook. This analysis provides valuable insights from an investor’s perspective

regarding the firm’s performance over time and its potential investment viability.

The initial step involves selecting a suitable firm that is publicly listed and non-financial, excluding Walmart. Reliable sources such as Yahoo Finance, Bloomberg, or Edgar are recommended to access accurate financial statements for the years 2019, 2020, and possibly 2021 if available. This ensures robust and current data vital for meaningful ratio calculations and trend analysis.

Next, the financial data from the firm’s income statement and balance sheet must be compiled into an Excel file. All ratios—liquidity, solvency, turnover, profitability, and market value—are then calculated using Excel formulas to ensure precision and repeatability. These ratios include, but are not limited to, current ratio, quick ratio, total debt ratio, debt-equity ratio, inventory turnover, ROA, ROE, P/E ratio, and market-to-book ratio.

Once the ratios are computed for 2019 and 2020, a detailed analysis compares the two years to identify any significant changes in financial performance. For example, improvements in liquidity ratios may suggest better short-term financial stability, while increases in leverage ratios could raise concerns about financial risk. Turnover ratios inform about operational efficiency, and profitability ratios indicate overall financial health and profitability trends. Market value ratios reveal investor perceptions and valuation changes.

The analysis should contextualize these ratios, linking changes to possible internal or external factors such as industry trends, economic conditions, or firm-specific events. For example, a decline in receivables turnover may suggest collection issues, while a rising Price/Earnings ratio could reflect growing investor optimism.

Finally, the paper concludes with an investment perspective, discussing whether the firm’s financial trend signals positive future prospects or potential risks. Recommendations based on the ratios and their implications can guide investor decisions, considering the firm’s strengths and vulnerabilities highlighted through the analysis.

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