part 1 financial; ratio analysis

Overview

Part 1: Financial Ratio Analysis

1. Select two publicly traded companies that operate within the same industry (e.g., Apple vs. Microsoft, Coca-Cola vs. Pepsi, Starbucks vs. Dunkin').
2. Perform a ratio analysis for each company by calculating at least two ratios from each of the following categories:

• Profitability Ratios (e.g., Net Profit Margin, Return on Assets)
• Liquidity Ratios (e.g., Current Ratio, Quick Ratio)
• Leverage Ratios (e.g., Debt-to-Equity Ratio, Interest Coverage Ratio)

Ensure your calculations are accurate and properly labeled in two tabs in an Excel workbook.

Include links to the financial statements used for your analysis.

Part 2: Investment Recommendation Paper

Using the ratio analysis from Part 1, write an argument paper persuading investors to choose one company over the other. Your paper should include:

• Introduction: Briefly introduce the two companies and the purpose of the analysis.
• Thesis Statement: Clearly state which company is the better investment choice and why.
• Analysis and Justification: Compare the ratios, highlighting key strengths and weaknesses. Support your argument with financial insights.
• Conclusion: Summarize your findings and reinforce your investment recommendation.

Deliverables:

1. Excel Workbook

• Properly labeled and calculated ratios
• Links to the financial statements of the selected companies

Word Document (Argument Paper)

• Well-structured analysis with clear reasoning and supporting evidence

Your paper should be three to five pages in length and conform to APA guidelines. Include at least three credible references in addition to the course textbook.