Overview
Overview In this class, we study the valuation and disclosure of financial statement accounts. Individual account values provide important information about a firm’s financial health. However, there is often greater value when these account values are used to calculate financial ratios. Many financial statement users rely on financial ratios to estimate a firms’ underlying value and make significant investing and financing decisions based on financial ratio analysis. In this case study, we assume you are analysts that have been asked to recommend a food company for investment. Specifically, your manager has asked your group to prepare a report that analyzes and compares the relative value of Domino’s vs Papa John’s. The report should provide a recommendation of which company to invest in and provide relevant financial facts to support your decision. Ratio Analysis In this case study, we will analyze the following characteristics using financial ratios: • Liquidity: measures the company's short-term ability to pay its maturing obligations • Solvency: measures the degree of protection for long-term creditors and investors • Profitability: measures the degree of success of a given company for a given period of time Learning Objectives At the end of this case study, students should be able to: 1. Compute and interpret liquidity, solvency, and profitability ratios. 2. Manipulate data within Excel across tabs and different workbooks. 3. Apply visualization technology to communicate results of analyses. 4. Create an analyst report that is informative and professional. Data/Resources Provided ● Domino’s Financial Statements (Excel Spreadsheet) ● Papa John’s Financial Statements (Excel Spreadsheet) ● Report Template (Microsoft Word) You should incorporate information gathered from at least two other resources (i.e., footnote
disclosures, Seeking Alpha reports, WSJ articles, etc.). Please cite your sources.
I also attached an example he had posted.
My part to answer is the following:
● Basic information about Domino’s and Papa John’s organized as an easy-to-read table:
▪ Ticker symbol and stock exchange ▪ Number of employees ▪ Number of stores ▪ Size (total assets as of most recent fiscal year end) ▪ Net income or loss (as of most recent fiscal year end)