Financial statement analysis report, Financial Management

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Financial statement analysis report:

1. Perform a comparative analysis (horizontal analysis). Analyze two items on the balance sheet and two items on the income statement for the two companies that would be important information to an investor. Discuss the trend of the selected items  (improving, deteriorating, or remaining stable) over the period 2010-2011. Justify your answer.
 
2. Perform a common size analysis (vertical analysis). Analyze and compare the results for the two shipping companies.
 
3. Perform a detailed financial ratio analysis for the years 2010-2011, using relevant ratios  (profitability ratios, liquidity ratios, leverage ratios, efficiency ratios, stock market ratios) for both companies and compare the results.
 
4. If you were making a decision to invest in one of the two companies, which company would you choose (based on the financial  statement analysis you have already performed)? What other factors (not included in the financial statements) are important when considering investment in a company? You should compare the two companies, comment on your results and always justify your answers, taking into consideration the current economic conditions and the shipping industry trends.


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