1. Historical Financial Statements (Income Statement, Balance Sheet and Statement of
Cash Flows) from the 3 most current years for the firm. These should be downloaded
from the SEC website. The financial statements must include horizontal (shown
between the years) and vertical analysis (shown to the right of the last year of
historical data).
2. Ratio analysis for the ratios shown on Table 1 in the Guide to Case Analysis (CA) of
the textbook:
a. Profitability ratios
b. Liquidity ratios
c. Leverage ratios
d. Activity ratios
e. Price-to-earnings ratio
f. The changes between years are included in the calculations.
3. Competitor ratios to compare with the ratios that were calculated in item 2. These
should be included on the same tab as the ratio analysis for the firm.
4. Financial analysis should include comparisons to the firm’s main competitor as well
as to the industry. How does the financial position of the firm influence the strategic
direction of the company? This section should not be used to define what each ratio
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1. The firm’s historical financial statements (Income Statement, Balance Sheet, and Statement of Cash Flows) for the last three years. These can be found on the SEC’s website and should be downloaded. Horizontal (between the years) and vertical (to the right of the last year of historical data) analysis must be included in the financial statements.
2. Ratio analysis for the ratios listed in Table 1 of the textbook’s Guide to Case Analysis (CA):
Profitability ratios, liquidity ratios, leverage ratios, activity ratios, and price-to-earnings ratios are all examples of ratios.
f. The calculations take into account year-to-year variations.
3. Competitor ratios, which should be compared to the ratios calculated in item 2. On the same tab as the ratio analysis, these should be included.
