Financial Statement Analysis Project

For this project, each student will select a publicly-traded company (e.g. NSE listed). Financial
data of the selected company and its peers should be downloaded from capital line database.
Description
In this project report and presentation, you will prepare a complete financial ratio analysis for
three companies that operate within the same industry. Using the ratios, you will summarize
your findings and make recommendations about investing/ lending etc. in/to each company.
Requirements
 Infographics are to be used in the presentation and the report
 Type the content of the report using double-spacing
 You may use an Excel spreadsheet to calculate these ratios/ making graphs or you
may create a Word document showing the calculations and results.
 Next, compute the industry averages for these same ratios
 Complete a ratio analysis for the three companies for the most recent fiscal year
o Current Ratio
o Quick Ratio
o Inventory Turnover
o Average Collection
Period
o Total Asset Turnover
o Debt Ratio
o Times Interest Earned
o Gross Profit Margin
o Operating Profit Margin
o Net Profit Margin
o Earnings per Share
o Return on Total Assets
o Return on Common
Equity
o Price/Earnings Ratio
o Market/Book Ratio
 Analyze the companies’ performance in the five key areas relative to
each another
o Liquidity
o Activity
o Debt
o Profitability
o Market

 Make a recommendation as to which company represents the best

investment

 Your final project should contain:

o A ratio analysis for each company

o A report comparing the companies in the five key areas and
providing an overall recommendation