Discuss the overall financial performance of company

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Reference no: EM132752803

Problem 1: An investor has approached you about whether purchasing stock in the company would be a wise investment. Using your financial analysis of the company, you will send a letter to the investor summarizing your findings and explaining whether you recommend a stock purchase at this time. Refer to the "Annual Reports for Approved Companies" located in the course materials. You will use information in the Form 10-K. Using the correct formulas and a separate tab for each analysis, calculate the following ratios using

Three liquidity ratios for the past 2 years
Three solvency ratios for the past 2 years
Three profitability ratios for the past 2 years

Problem 2: In addition, conduct research about a competitor company within the same sector using IBIS World and other topic resources. Competitor analysis that includes a minimum of three ratios and compares your company to a competitor company using these ratios to determine financial performance as well as how the company compares to overall industry averages. Justify your analysis by explaining your findings.

Problem 3: Discuss the overall financial performance of your company in relation to industry averages and a specific competitor. Explain whether the company performed better or worse than the competition using specific numbers and providing an explanation of what the numbers illustrate.

Problem 4: Recommend whether the potential investor should purchase stock in your company and justify your recommendation based upon your research and analysis of the company ratios and industry competition.

Reference no: EM132752803

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