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Question

Instructions for this assignment:

Pick any two U.S. public companies in the same industry.

One of the two companies can be the same company you used in Week 2.(Wal Mart was used in Week 2) Look at my previous writing.

Create an Excel file that follows the format of the example 2016 July DMBA R Sample Week 3 Answer for 2 airlines, using the “Compare” worksheet. This file is also separately posted in this week's content module.
Select at least 10 of the most important financial ratios for the two companies and calculate each for the last 2 fiscal years using Excel. All calculations should be shown in the Excel file.

1. Of the 10 required ratios, calculate the 4 ratios of the DuPont Analysis . These ratios are ROE, Profit Margin on Sales, TATO and the Equity Multiplier. Select at least 4 others:

2. Evaluate short-term solvency ratios

3. Evaluate profitability in relation to revenues

4. Evaluate profitability in relation to equity

5. Evaluate long-term solvency

6. Evaluate market value ratios (not just book value ratios)


Add notes in the Excel file, that explain in your own words how each ratio was calculated and what it means for your analysis.
Prepare an 8-10 page written report to the CEO, in which you detail:
What are the strengths and weaknesses of each company?
Which is the stronger competitor?
Is one firm the better opportunity?
Is one or both outperforming or underperforming in the industry?.
Is long term or short term investment better?
summarize your findings as detailed in the Excel file,
explain why these particular ratios were selected for comparison (their importance),
explain the significance of the comparative analysis.
Recommend investment actions to the CEO that are well supported by the data and your analysis.
Cite all sources

Format requirements for the written report are
Meaningful report title including your name
Short Executive summary of no more than one page
Introduction with report purpose
Section headings helpful to the reader
Conclusion with key "take-away" points repeated from report body
Reference list in APA format
Page numbers on all pages
submit both the Excel file and written report into your Assignment folder by the due date..