Company Analysis: CANON (a Japanese company)
2. Ensure there are at least five (5) years of audited financial statements
(2021,20,19,18,17).
3. Discuss the major products this firm sells.
4. Discuss the markets (e.g. Countries) in which firm participates.
5. Identify and discuss the following risk factors and how they presently, and in the future, might impact the firm:
a. Political Risk
b. Economic Risk
c. Social Risk
d. Technological Risk
e. Cultural Risk
6. Describe what the firm is doing to reduce or mitigate these risk factors.
7. Conduct ratio analysis of the financials (per the hand out of the CFA).
a. Create a spreadsheet with the financial statements for the five years
b. Create a spreadsheet with the ratios for the five years
8. Analyze and comment on the results of your analysis (be sure to reference the data).
Break your analysis into the following categories:
a. Common size analysis
b. Liquidity
c. Activity
d. Solvency
e. Profitability
9. Comment and analyze the firm’s major accounting policies regarding the following (be sure to read the footnotes) (also note what accounting standards were followed in preparing the financial statements (US GAAP or IFRS)):
a. Inventory
b. Plant Property and Equipment
c. Liabilities
d. Leases
e. Revenue Recognition
f. Investments
10. Comment on the audit opinion of the firm
a. What type of opinion did it receive over the five years?
b. What standards were followed in conducting the audit
c. Comment on the quality of the audit firm
11. Compare and contrast the overall market return versus this firm’s return (Create a graph with comparisons)
a. What is your prediction of the short term return for this firm? Will it outperform the market?
b. What is your prediction for the long term return for this firm? Will it outperform the market?
12. How would you assess the risk return prospects of this firm?
13. What are the future prospects for this firm?
a. Would you recommend an investment in this firm? (Why/Why Not)
b. Would you want to work for this firm? (Why/Why Not)
14. Why would you want to invest in this company/Why would you want to invest in this company?
