What are the primary lines of business of these two companies as shown in their notes to the financial statement?

Assignment Content

  1. For your Final Project in the course, assume the role of financial analyst and create a full analysis between two different companies in the same industry (for example, Coca Cola and Pepsi). Please ensure that you fully explain all calculations and that you answer every question thoroughly. You will need to locate information about the two companies’ annual financial statements for the most recent year available. To do so, go to one of the many financial sites on the Internet to download their reports.
    Your analysis should address the following items:
    1. What are the primary lines of business of these two companies as shown in their notes to the financial statement?
    2. Which company has the dominant position in their industry?
    3. What are the gross profits, operating profits, and net income for these two companies?
    4. Compute both companies’ cash coverage ratio, current ratio, and free cash flow.
    5. What ratios do each of these companies use in the Management’s Discussion and Analysis section of the annual report to explain their financial condition related to debt financing (meaning you MUST find each of the two firms’ annual reports)?
    6. What are the gross profits, net income, EBIT, EBITDA and free cash flow (FCF) for these two companies?
    7. For both companies, compute:
    • current ratio;
    • quick ratio;
    • total debt ratio;
    • debt-equity ratio;
    • total asset turnover;
    • inventory turnover;
    • day’s sales in inventory;
    • profit margin on sales;
    • return on assets; and
    • return on equity.
    • Fully explain what each ratio is telling you (NOT just a definition), but relevant to your firms.

    Complete your study with a full DuPont Model.Specifically, after calculating the ratios, explain what each tells you about the company and compare/contrast with the other company. For example, when discussing the day’s sales in inventory and inventory turnover, indicate where and why there might be a significant difference between the two companies you have selected.
    Finally, using two of the several valuation models we have studied in this course, demonstrate whether the stock is overvalued, undervalued, or correctly valued by the market. They might include CAPM, Dividend Discount, Free Cash Flow, or Earnings Multiplier, your choice, but be prepared to defend your answer in your final presentation.
    The paper must follow APA writing style guidelines for citation (both in-text and reference), structure, grammar, spelling, and punctuation. Include your analytical comments and add charts or graphs if they help to prove your point more clearly.
    Click the Grading rubric link to see the criteria I will use to assess your work and to compare your work to the rubric before submitting it.
Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
The price is based on these factors:
Academic level
Number of pages
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our Guarantees

Money-back Guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism Guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision Policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy Policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation Guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more