Excel project financial statement analysis | ACCT 370 – Financial Statement Analysis | Liberty University

Excel Project: Competitor Analysis Assignment Instructions

Overview

Competitor #1 Income Statement (Tab 5), Competitor #1 Balance Sheet (Tab 6), Competitor #1 Cash Flows (Tab 7), Competitor #2 Income Statement (Tab 8), Competitor #2 Balance Sheet (Tab 9), Competitor #2 Cash Flows (Tab 10), Historical and Competitor Ratios (Tab 11)

Instructions

· Continue in the same Excel workbook prepared in Module 2: Week 2, adding the following tabs:

· The

5th tab and 8th tabs
in your Financial Statement Analysis Template must be labeled
(Competitor Company Name) Income Statements. (Replace “Competitor Company Name” with the name of the competitor.)

· Include the latest

three years
of income statements for your competitor based on SEC filings.

· Ensure that the worksheet includes a header with:

· Company Name

· Financial Statement Name (Income Statements)

· Financial Statement Dates

· Denomination level ($s in millions or thousands, etc.)

· The

6th and 9th tabs
in your Financial Statement Analysis Template must be labeled
(Competitor Company Name) Balance Sheets. (Replace “Competitor Company Name” with the name of the competitor.)

· Include the latest

three years
of balance sheets for your first competitor based on SEC (10-K) filings. (
Note: Some 10-Ks only provided 2 years of balance sheet data. You may need to download the second most recent 10-K for your company in order to obtain 3 years of balance sheet data.)

· Ensure that the worksheet includes a header with:

· Company Name

· Financial Statement Name

· Financial Statement Dates

· Denomination level ($s in millions or thousands, etc.)

· The

7th and 10th tabs
in your Financial Statement Analysis Template must be labeled
(Competitor Company Name) Cash Flows. (Replace “Competitor Company Name” with the name of the competitor.)

· Include the latest

three years
based on SEC (10-K) filings.

· Make sure that the Income Statement, Balance Sheet, and Cash Flows Statement tie in as follows:

· Net Income from Income statement agrees with Net Income on the Statement of Cash Flows

· Ending Cash Balance from Statement of Cash Flows agrees with Cash in the Balance Sheet

· The

11th tab
in your Financial Statement Analysis Template must be labeled Historical and Competitor Ratios

· The list of ratios to be included are as follows. They should be grouped under the headings, as shown:

·
Liquidity Ratios

· Current Ratio

· Quick Ratio

·
Leverage Ratios

· Debt to Total Assets Ratio

· Debt Equity Ratio

· Long-Term Debt to Equity

· Times Interest Earned Ratio

·
Activity Ratios

· Inventory Turnover

· Fixed Assets Turnover

· Total Assets Turnover

· Accounts Receivable Turnover

· Average Collection Period

·
Profitability Ratios

· Gross Profit Margin

· Operating Profit Margin

· Net Profit Margin

· Return on Total Assets (ROA)

· Return on Stockholders’ Equity (ROE)

· Earnings Per Share (EPS)

· Price Earnings Ratio

· Calculate the ratios for your chosen company
for the last three years, linking the ratio calculations back to the historical financial statement tabs (Tabs 2-4) using formulas.

· Calculate the ratios for each of your company’s competitors (most recent year only), linking the ratio calculations to the competitor financial statements shown in Tabs 5-10 using formulas.

· Using the internet, locate the industry averages for the ratios listed above, and include them in the final column of the ratio tab. Include a footnote on the tab to identify the source of the industry averages.

· Other instructions:

· The Excel workbook should be professionally formatted. Professional formatting includes:

· All numbers are formatted similarly. The use of decimals, commas for thousands, and other formatting is consistent.

· Dollar signs are included in the first and last numbers of each column.

· Subtotals and totals are preceded by a single underline. Totals are followed by a double underline.

· Line descriptions are indented/bolded in a manner that makes the spreadsheet easy to read.

·
All totals and subtotals in the competitor financial statements as well as the ratio calculations should be calculated using formulas

Note: Your assignment will be checked for originality via the Turnitin plagiarism tool.

ACCT 370

Page 2 of 2

Exhibit A: Example Historical and Competitor Ratios (Tab 11)

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