Analyzing Financial Statements: Improving the Financial Health of a Publicly Held Company

Overview of Financial Statements

Financial statements are reports that summarize all the accounting transactions that have taken place during a specific period of time.Choose a publicly held company and, using the Internet, review its most current annual report. Evaluate the health of the corporation you picked based upon your analysis of its financial statements: balance sheets, income statements, cash flow statements, and statements of shareholders' equity. Then, research a similar sized competitor for comparison.

Instructions

Write a report suggesting ways to improve the company's financial health.

1. Conduct a vertical, horizontal, and ratio analysis on four financial statements.
2. Compare the ratio, which includes liquidity, profitability, and solvency, with the industry benchmark and one other comparable competitor.
3. Synthesize the results of the three financial analysis tests to determine the overall health of the organization.
4. Present an accurate interpretation of the company's current financial health, including risks. Support your conclusions.
5. Recommend three ways to improve the company’s financial health, including one example for each that has been used in the industry.

Use three sources to support your writing, including the web address of your chosen company. Choose sources that are credible, relevant, and appropriate. Cite each source listed on your source page at least one time within your assignment.