Financial Analysis: Investing in Companies
companies in which to invest.
Select a U.S. publically-traded company you think might be a
good investment and perform a financial analysis. Your analysis should include
the following:
– Company Overview. Conduct research and describe the
company, its operations, locations, markets, and lines of business. Collect
financial statements for the past three (3) years, fiscal or calendar (please
insert these in the appendix). These financial statements must include at least
the income statement and the balance sheet.
– Evaluate the company’s vulnerability to current financial
threats such as a recession, higher interest rates, and global competition.
– Financial Performance. Based on the financial trends of
the company, predict how these trends will impact financial performance in
future periods. Explain your rationale for this prediction.
– Stock Price Analysis. Given the performance of the stock
in the periods presented on the company’s financial statements, discuss how the
stock is likely to perform in the future, what type of investor would be drawn
to this stock, and make a recommendation to management to improve stock
performance.
Submit analysis in which you:
1. Provide a detailed overview of a U.S. publicly traded
company. This should be one to two (1-2) pages.
2. Evaluate the company’s vulnerability to current financial
threats such as a recession, higher interest rates, and global competition.
3. Based on the financial trends of the company, predict how
these trends will impact financial performance in future periods. Explain your
rationale for this prediction.
4. Cite at least five (5) quality references.





