{"id":22805,"date":"2023-07-03T02:13:50","date_gmt":"2023-07-03T02:13:50","guid":{"rendered":"https:\/\/www.goodacademic.com\/blog\/questions\/review-the-financial-health-of-two-assigned-companies-with-the-ultimate-goal-of-recommending-one-of-the-companies-to-an-investor\/"},"modified":"2023-07-03T02:13:50","modified_gmt":"2023-07-03T02:13:50","slug":"review-the-financial-health-of-two-assigned-companies-with-the-ultimate-goal-of-recommending-one-of-the-companies-to-an-investor","status":"publish","type":"questions","link":"https:\/\/www.goodacademic.com\/blog\/questions\/review-the-financial-health-of-two-assigned-companies-with-the-ultimate-goal-of-recommending-one-of-the-companies-to-an-investor\/","title":{"rendered":"Review the financial health of two assigned companies with the ultimate goal of recommending one of the companies to an investor."},"content":{"rendered":"<p style=\"cursor: auto; color: inherit;\"><b style=\"cursor: auto; color: inherit;\"><span style=\"font-size: 11pt; cursor: auto; color: inherit;\">Project Goal:<\/span><\/b><span style=\"font-size: 11pt; cursor: auto; color: inherit;\"><span style=\"cursor: auto; color: inherit;\">&nbsp; <\/span>Review the<br \/>\nfinancial health of two assigned companies with the ultimate goal of<br \/>\nrecommending one of the companies to an investor. <\/span><\/p>\n<p style=\"cursor: auto; color: inherit;\"><span style=\"font-size: 11pt; cursor: auto; color: inherit;\"><br \/><\/span><\/p>\n<p style=\"cursor: auto; color: inherit;\"><span style=\"font-size: 11pt; cursor: auto; color: inherit;\">I do not need an intro and conclusion. just need the below.<\/span><\/p>\n<p style=\"cursor: auto; color: inherit;\"><span style=\"font-size: 11pt; cursor: auto; color: inherit;\">&nbsp;<\/span><\/p>\n<p style=\"cursor: auto; color: inherit;\"><b style=\"cursor: auto; color: inherit;\"><span style=\"font-size: 11pt; cursor: auto; color: inherit;\">Vertical and Horizontal<br \/>\nAnalysis of Income Statement and Balance Sheet: (6 page)<\/span><\/b><\/p>\n<p style=\"cursor: auto; color: inherit;\"><b style=\"cursor: auto; color: inherit;\"><span style=\"font-size: 11pt; cursor: auto; color: inherit;\">&nbsp;<\/span><\/b><\/p>\n<table style=\"cursor: auto; color: inherit;\">\n<tbody style=\"cursor: auto; color: inherit;\">\n<tr style=\"cursor: auto; color: inherit;\">\n<td style=\"padding: 0cm 5.4pt; cursor: auto; color: inherit;\">\n<p style=\"cursor: auto; color: inherit;\"><span style=\"font-size: 10.5pt; cursor: auto; color: inherit;\">Horizontal analysis of income statement of Magna<\/span><\/p>\n<\/td>\n<\/tr>\n<tr style=\"cursor: auto; color: inherit;\">\n<td style=\"padding: 0cm 5.4pt; cursor: auto; color: inherit;\">\n<p style=\"cursor: auto; color: inherit;\"><span style=\"font-size: 10.5pt; cursor: auto; color: inherit;\">Horizontal analysis of Balance sheet of Linarma<\/span><\/p>\n<\/td>\n<\/tr>\n<tr style=\"cursor: auto; color: inherit;\">\n<td style=\"padding: 0cm 5.4pt; cursor: auto; color: inherit;\">\n<p style=\"cursor: auto; color: inherit;\"><span style=\"font-size: 10.5pt; cursor: auto; color: inherit;\">Vertical analysis of income statement of Magna<\/span><\/p>\n<\/td>\n<\/tr>\n<tr style=\"cursor: auto; color: inherit;\">\n<td style=\"padding: 0cm 5.4pt; cursor: auto; color: inherit;\">\n<p style=\"cursor: auto; color: inherit;\"><span style=\"font-size: 10.5pt; cursor: auto; color: inherit;\">Vertical analysis of Balance sheet of Linarma<\/span><\/p>\n<\/td>\n<\/tr>\n<tr style=\"cursor: auto; color: inherit;\">\n<td style=\"padding: 0cm 5.4pt; cursor: auto; color: inherit;\">\n<p style=\"cursor: auto; color: inherit;\"><span style=\"font-size: 10.5pt; cursor: auto; color: inherit;\">Discussion on importance of horizontal and vertical analysis<\/span><\/p>\n<\/td>\n<\/tr>\n<tr style=\"cursor: auto; color: inherit;\">\n<td style=\"padding: 0cm 5.4pt; cursor: auto; color: inherit;\">\n<p style=\"cursor: auto; color: inherit;\"><span style=\"font-size: 10.5pt; cursor: auto; color: inherit;\">Discussion on negative and positive trends<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p style=\"cursor: auto; color: inherit;\"><span style=\"font-size: 11pt; cursor: auto; color: inherit;\">&nbsp;<\/span><\/p>\n<p style=\"cursor: auto; color: inherit;\"><b style=\"cursor: auto; color: inherit;\"><span style=\"font-size: 11pt; cursor: auto; color: inherit;\">Ratio analysis (7 page)<\/span><\/b><\/p>\n<p style=\"cursor: auto; color: inherit;\"><span style=\"font-size: 11pt; cursor: auto; color: inherit;\">Calculate the: <\/span><\/p>\n<table style=\"cursor: auto; color: inherit;\">\n<tbody style=\"cursor: auto; color: inherit;\">\n<tr style=\"cursor: auto; color: inherit;\">\n<td style=\"padding: 0cm 5.4pt; cursor: auto; color: inherit;\">\n<p style=\"cursor: auto; color: inherit;\"><span style=\"font-size: 10.5pt; cursor: auto; color: inherit;\"><span style=\"cursor: auto; color: inherit;\">\u00b7<span style=\"font-size: 7pt; line-height: normal; cursor: auto; color: inherit;\">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<br \/>\n  <\/span><\/span><\/span><span style=\"font-size: 10.5pt; cursor: auto; color: inherit;\">Current ratio<\/span><\/p>\n<\/td>\n<\/tr>\n<tr style=\"cursor: auto; color: inherit;\">\n<td style=\"padding: 0cm 5.4pt; cursor: auto; color: inherit;\">\n<p style=\"cursor: auto; color: inherit;\"><span style=\"font-size: 10.5pt; cursor: auto; color: inherit;\"><span style=\"cursor: auto; color: inherit;\">\u00b7<span style=\"font-size: 7pt; line-height: normal; cursor: auto; color: inherit;\">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<br \/>\n  <\/span><\/span><\/span><span style=\"font-size: 10.5pt; cursor: auto; color: inherit;\">Quick ratio<\/span><\/p>\n<\/td>\n<\/tr>\n<tr style=\"cursor: auto; color: inherit;\">\n<td style=\"padding: 0cm 5.4pt; cursor: auto; color: inherit;\">\n<p style=\"cursor: auto; color: inherit;\"><span style=\"font-size: 10.5pt; cursor: auto; color: inherit;\"><span style=\"cursor: auto; color: inherit;\">\u00b7<span style=\"font-size: 7pt; line-height: normal; cursor: auto; color: inherit;\">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<br \/>\n  <\/span><\/span><\/span><span style=\"font-size: 10.5pt; cursor: auto; color: inherit;\">Net working capital<\/span><\/p>\n<\/td>\n<\/tr>\n<tr style=\"cursor: auto; color: inherit;\">\n<td style=\"padding: 0cm 5.4pt; cursor: auto; color: inherit;\">\n<p style=\"cursor: auto; color: inherit;\"><span style=\"font-size: 10.5pt; cursor: auto; color: inherit;\"><span style=\"cursor: auto; color: inherit;\">\u00b7<span style=\"font-size: 7pt; line-height: normal; cursor: auto; color: inherit;\">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<br \/>\n  <\/span><\/span><\/span><span style=\"font-size: 10.5pt; cursor: auto; color: inherit;\">Debt-to-equity ratio<\/span><\/p>\n<\/td>\n<\/tr>\n<tr style=\"cursor: auto; color: inherit;\">\n<td style=\"padding: 0cm 5.4pt; cursor: auto; color: inherit;\">\n<p style=\"cursor: auto; color: inherit;\"><span style=\"font-size: 10.5pt; cursor: auto; color: inherit;\"><span style=\"cursor: auto; color: inherit;\">\u00b7<span style=\"font-size: 7pt; line-height: normal; cursor: auto; color: inherit;\">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<br \/>\n  <\/span><\/span><\/span><span style=\"font-size: 10.5pt; cursor: auto; color: inherit;\">Times interest earned<\/span><\/p>\n<\/td>\n<\/tr>\n<tr style=\"cursor: auto; color: inherit;\">\n<td style=\"padding: 0cm 5.4pt; cursor: auto; color: inherit;\">\n<p style=\"cursor: auto; color: inherit;\"><span style=\"font-size: 10.5pt; cursor: auto; color: inherit;\"><span style=\"cursor: auto; color: inherit;\">\u00b7<span style=\"font-size: 7pt; line-height: normal; cursor: auto; color: inherit;\">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<br \/>\n  <\/span><\/span><\/span><span style=\"font-size: 10.5pt; cursor: auto; color: inherit;\">Financial Leverage<\/span><\/p>\n<\/td>\n<\/tr>\n<tr style=\"cursor: auto; color: inherit;\">\n<td style=\"padding: 0cm 5.4pt; cursor: auto; color: inherit;\">\n<p style=\"cursor: auto; color: inherit;\"><span style=\"font-size: 10.5pt; cursor: auto; color: inherit;\"><span style=\"cursor: auto; color: inherit;\">\u00b7<span style=\"font-size: 7pt; line-height: normal; cursor: auto; color: inherit;\">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<br \/>\n  <\/span><\/span><\/span><span style=\"font-size: 10.5pt; cursor: auto; color: inherit;\">Asset Turnover<\/span><\/p>\n<\/td>\n<\/tr>\n<tr style=\"cursor: auto; color: inherit;\">\n<td style=\"padding: 0cm 5.4pt; cursor: auto; color: inherit;\">\n<p style=\"cursor: auto; color: inherit;\"><span style=\"font-size: 10.5pt; cursor: auto; color: inherit;\"><span style=\"cursor: auto; color: inherit;\">\u00b7<span style=\"font-size: 7pt; line-height: normal; cursor: auto; color: inherit;\">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<br \/>\n  <\/span><\/span><\/span><span style=\"font-size: 10.5pt; cursor: auto; color: inherit;\">Receivables Turnover<\/span><\/p>\n<\/td>\n<\/tr>\n<tr style=\"cursor: auto; color: inherit;\">\n<td style=\"padding: 0cm 5.4pt; cursor: auto; color: inherit;\">\n<p style=\"cursor: auto; color: inherit;\"><span style=\"font-size: 10.5pt; cursor: auto; color: inherit;\"><span style=\"cursor: auto; color: inherit;\">\u00b7<span style=\"font-size: 7pt; line-height: normal; cursor: auto; color: inherit;\">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<br \/>\n  <\/span><\/span><\/span><span style=\"font-size: 10.5pt; cursor: auto; color: inherit;\">Average Collection Period<\/span><\/p>\n<\/td>\n<\/tr>\n<tr style=\"cursor: auto; color: inherit;\">\n<td style=\"padding: 0cm 5.4pt; cursor: auto; color: inherit;\">\n<p style=\"cursor: auto; color: inherit;\"><span style=\"font-size: 10.5pt; cursor: auto; color: inherit;\"><span style=\"cursor: auto; color: inherit;\">\u00b7<span style=\"font-size: 7pt; line-height: normal; cursor: auto; color: inherit;\">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<br \/>\n  <\/span><\/span><\/span><span style=\"font-size: 10.5pt; cursor: auto; color: inherit;\">Inventory Turnover<\/span><\/p>\n<\/td>\n<\/tr>\n<tr style=\"cursor: auto; color: inherit;\">\n<td style=\"padding: 0cm 5.4pt; cursor: auto; color: inherit;\">\n<p style=\"cursor: auto; color: inherit;\"><span style=\"font-size: 10.5pt; cursor: auto; color: inherit;\"><span style=\"cursor: auto; color: inherit;\">\u00b7<span style=\"font-size: 7pt; line-height: normal; cursor: auto; color: inherit;\">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<br \/>\n  <\/span><\/span><\/span><span style=\"font-size: 10.5pt; cursor: auto; color: inherit;\">Average days in Inventory<\/span><\/p>\n<\/td>\n<\/tr>\n<tr style=\"cursor: auto; color: inherit;\">\n<td style=\"padding: 0cm 5.4pt; cursor: auto; color: inherit;\">\n<p style=\"cursor: auto; color: inherit;\"><span style=\"font-size: 10.5pt; cursor: auto; color: inherit;\"><span style=\"cursor: auto; color: inherit;\">\u00b7<span style=\"font-size: 7pt; line-height: normal; cursor: auto; color: inherit;\">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<br \/>\n  <\/span><\/span><\/span><span style=\"font-size: 10.5pt; cursor: auto; color: inherit;\">Profit Margin<\/span><\/p>\n<\/td>\n<\/tr>\n<tr style=\"cursor: auto; color: inherit;\">\n<td style=\"padding: 0cm 5.4pt; cursor: auto; color: inherit;\">\n<p style=\"cursor: auto; color: inherit;\"><span style=\"font-size: 10.5pt; cursor: auto; color: inherit;\"><span style=\"cursor: auto; color: inherit;\">\u00b7<span style=\"font-size: 7pt; line-height: normal; cursor: auto; color: inherit;\">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<br \/>\n  <\/span><\/span><\/span><span style=\"font-size: 10.5pt; cursor: auto; color: inherit;\">Return on Assets<\/span><\/p>\n<\/td>\n<\/tr>\n<tr style=\"cursor: auto; color: inherit;\">\n<td style=\"padding: 0cm 5.4pt; cursor: auto; color: inherit;\">\n<p style=\"cursor: auto; color: inherit;\"><span style=\"font-size: 10.5pt; cursor: auto; color: inherit;\"><span style=\"cursor: auto; color: inherit;\">\u00b7<span style=\"font-size: 7pt; line-height: normal; cursor: auto; color: inherit;\">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<br \/>\n  <\/span><\/span><\/span><span style=\"font-size: 10.5pt; cursor: auto; color: inherit;\">Return on Equity<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p style=\"cursor: auto; color: inherit;\"><span style=\"font-size: 11pt; cursor: auto; color: inherit;\"><span style=\"cursor: auto; color: inherit;\">\u00b7<span style=\"font-size: 7pt; line-height: normal; cursor: auto; color: inherit;\">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <\/span><\/span><\/span><span style=\"font-size: 11pt; cursor: auto; color: inherit;\">Discuss and interpret the ratios that you calculated<br \/>\nand compare the liquidity, efficiency and productivity of PPE and Total assets,<br \/>\nreceivables and inventory management and solvency of the two companies. <\/span><\/p>\n<p style=\"cursor: auto; color: inherit;\"><span style=\"font-size: 11pt; cursor: auto; color: inherit;\"><span style=\"cursor: auto; color: inherit;\">\u00b7<span style=\"font-size: 7pt; line-height: normal; cursor: auto; color: inherit;\">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <\/span><\/span><\/span><span style=\"font-size: 11pt; cursor: auto; color: inherit;\">Discuss any potential weak performance and risk based<br \/>\non your calculations of the ratios for the two companies. <\/span><\/p>\n<p style=\"cursor: auto; color: inherit;\"><span style=\"font-size: 11pt; cursor: auto; color: inherit;\"><span style=\"cursor: auto; color: inherit;\">\u00b7<span style=\"font-size: 7pt; line-height: normal; cursor: auto; color: inherit;\">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <\/span><\/span><\/span><span style=\"font-size: 11pt; cursor: auto; color: inherit;\">Use the Dupont framework to analyze any difference in<br \/>\nthe ROE of the two companies. <\/span><\/p>\n<p style=\"cursor: auto; color: inherit;\"><span style=\"font-size: 11pt; cursor: auto; color: inherit;\"><span style=\"cursor: auto; color: inherit;\">\u00b7<span style=\"font-size: 7pt; line-height: normal; cursor: auto; color: inherit;\">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <\/span><\/span><\/span><span style=\"font-size: 11pt; cursor: auto; color: inherit;\">Are there any factors that could be erroneously<br \/>\ninfluencing the results of the ratios you have calculated?<\/span><\/p>\n<p style=\"cursor: auto; color: inherit;\"><b style=\"cursor: auto; color: inherit;\"><span style=\"font-size: 11pt; cursor: auto; color: inherit;\">&nbsp;<\/span><\/b><\/p>\n<p style=\"margin-left: 54pt; cursor: auto; color: inherit;\"><span style=\"font-size: 11pt; cursor: auto; color: inherit;\">&nbsp;<\/span><\/p>\n<p style=\"margin-left: 54pt; cursor: auto; color: inherit;\"><b style=\"cursor: auto; color: inherit;\"><span style=\"font-size: 11pt; cursor: auto; color: inherit;\">Recommendation &amp; Conclusion (1<br \/>\npage)<\/span><\/b><span style=\"font-size: 11pt; cursor: auto; color: inherit;\"><\/span><\/p>\n<p style=\"margin-left: 90pt; cursor: auto; color: inherit;\"><span style=\"font-size: 11pt; cursor: auto; color: inherit;\"><span style=\"cursor: auto; color: inherit;\">\u00b7<span style=\"font-size: 7pt; line-height: normal; cursor: auto; color: inherit;\">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <\/span><\/span><\/span><span style=\"font-size: 11pt; cursor: auto; color: inherit;\">Based on your analysis, which of the two companies<br \/>\nwould you recommend as an investment to a prospective investor? <\/span><\/p>\n<p style=\"margin-left: 90pt; cursor: auto; color: inherit;\"><span style=\"font-size: 11pt; cursor: auto; color: inherit;\"><span style=\"cursor: auto; color: inherit;\">\u00b7<span style=\"font-size: 7pt; line-height: normal; cursor: auto; color: inherit;\">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <\/span><\/span><\/span><span style=\"font-size: 11pt; cursor: auto; color: inherit;\">You must provide justification for your recommendation<br \/>\nbased on your analysis of the 2 companies and any other relevant publicly<br \/>\navailable information.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Project Goal:&nbsp; Review the financial health of two assigned companies with the ultimate goal of recommending one of the companies to an investor. I do not need an intro and conclusion. just need the below. &nbsp; Vertical and Horizontal Analysis of Income Statement and Balance Sheet: (6 page) &nbsp; Horizontal analysis of income statement of [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"closed","template":"","meta":[],"disciplines":[676],"paper_types":[],"tagged":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.goodacademic.com\/blog\/wp-json\/wp\/v2\/questions\/22805"}],"collection":[{"href":"https:\/\/www.goodacademic.com\/blog\/wp-json\/wp\/v2\/questions"}],"about":[{"href":"https:\/\/www.goodacademic.com\/blog\/wp-json\/wp\/v2\/types\/questions"}],"author":[{"embeddable":true,"href":"https:\/\/www.goodacademic.com\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.goodacademic.com\/blog\/wp-json\/wp\/v2\/comments?post=22805"}],"version-history":[{"count":0,"href":"https:\/\/www.goodacademic.com\/blog\/wp-json\/wp\/v2\/questions\/22805\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.goodacademic.com\/blog\/wp-json\/wp\/v2\/media?parent=22805"}],"wp:term":[{"taxonomy":"disciplines","embeddable":true,"href":"https:\/\/www.goodacademic.com\/blog\/wp-json\/wp\/v2\/disciplines?post=22805"},{"taxonomy":"paper_types","embeddable":true,"href":"https:\/\/www.goodacademic.com\/blog\/wp-json\/wp\/v2\/paper_types?post=22805"},{"taxonomy":"tagged","embeddable":true,"href":"https:\/\/www.goodacademic.com\/blog\/wp-json\/wp\/v2\/tagged?post=22805"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}