Financial & Managerial Accounting
Company analysis
Purpose: The purpose of the assignment is to assess your ability to analyze a company for its investment potential.
Overview: Read chapter thirteen from Wild, J. & Shaw, K. (2019). Financial & managerial accounting: Information for decisions (8th ed.). McGraw-Hill Education. ISBN: 978-1-26024785-5
Action Items
Read chapter 13 and read about the four building blocks of analysis from chapter 13.
Choose a company in the USA from an industry and acquire its financial statement then use this financial statement to analyze the company in detail including at least one ratio from each of the four building blocks of analysis. When necessary, use the financial press to determine the market price of its stock.
Your analysis will consist of four sections:
• Brief overview, about the company, industry, and the economy.
• Evidential matter, which includes the financial statement, information used in the analysis including ratios, ratios analysis, trends, and all analytical measures used.
• Key factors, list of favorable and unfavorable factors, both quantitative and qualitative, for company performance usually organized by areas of analysis.
• Inference, estimates, interpretations, forecasts, conclusions of the analysis report, and recommendations.
