In: Finance
Select 2 corporations that compete in the same industry. You will review their financial reports for the last available 2 years and compare and contrast the financing choices of the two companies. You should present your findings in a PowerPoint presentation (with completed Notes section providing details of your analysis. You must also provide a slide of exhibits of financial reports analyzed for the Presentation).
There are different Industries like Garments Industry, Steel Industry, FMCG Industry, Pharmaceutical Industry etc. Choose any Industry of your interest.
Then find the top companies of that Industry. Suppose you are taking Pharma Industry. Choose 2 company which are doing great business in Pharma Sector.
See their financial reports of previous 2 years. Financial Report means the statements which gives an idea of the overall financial health of the company. Financial Report includes Balance Sheet, Income Statement, Cash Flow Statement, Fund Flow Statement etc.
Review these reports which means you have to analyse these reports of both the companies. Tools for Comparison and Analysis are Ratio Analysis, Comparative Balance Sheet, Comparative Income Statement, Common size Balance Sheet etc.
Whatever be your findings, for example, the ideal debt equity ratio is 2:1. Suppose Company A has debt equity ratio of 1.5:1 and Company B has debt equity ratio of 1.9:1. This means Company B is close to the ideal debt equity ratio, which means it is in a better position than Company A.
Likewise you can interpret different ratios. You can write all your findings and make a power point presentation for the same.