Industry Financial Analysis

This final project assignment will consist of two requirements. The first requirement of this project focuses on fundamental financial analysis of five publicly traded companies in the same industry. Analyzing companies from a financial perspective is a critical skill and will allow you to gain a deeper understanding of the financial performance of a business from a variety of perspectives. Throughout this project assignment, you should focus on understanding the financial condition of a company, the environment that creates these conditions, and the impact of these conditions on future performance. This assignment will allow you to evaluate and compare companies within the context of a particular industry and global perspective. The second requirement will require that the learner further evaluate the strongest and weakest of the companies based on fundamental economic and external analysis. Learners will conduct a comparative analysis with respect to financial markets, global economics and the overall value proposition. PROJECT ASSIGNMENT: Select five publicly traded companies within a specific industry, including one company that is a global competitor. Use the following outline of requirements to help guide your written financial and comparative analysis. Using a financial database, access financial data for each of the firms in your chosen industry, and complete the following requirements for the project assignment: I. Industry Financial Analysis a. Provide a comparative financial analysis for each of the five companies for the past year for the following categories of financial ratios: i. Liquidity ii. Asset Management iii. Debt Management iv. Profitability v. Market Value b. Create a table in which you rank each of the five companies based on financial ratio performance (row) and company name (column). Rank each of the companies 1 through 5 (where 1 is strongest and 5 weakest). c. Use the results of this quantitative analysis to interpret and identify the strongest and the weakest company from a financial analysis perspective. Support this decision with solid arguments, analysis and key data in a summarized format. II. Comparative Analysis a. Prepare an external industry analysis on how major social, legal, economic, political and technological (SLEPT) trends have impacted the industry and the two firms, both nationally and internationally. b. Discuss how macroeconomic conditions and policies have impacted the strategic and competitive position of the two firms (e.g. strongest and weakest). c. Describe how major financial assets and markets have impacted the competitive strategy of the two firms. d. Evaluate each firms competitive advantages based on your economic and external analysis. e. Summarize and discuss each firm’s overall value proposition to stakeholders.