Introduction: Explain briefly the similarities and differences between your company and its competitor with focus on business activities. (10 points)
Income Statement: Prepare common size analysis for two companies. Compare the composition of their costs, operating expenses, EBIT and net income. Compare their dividend payout and retention ratios.
(20 points)
Balance Sheet: Prepare common size analysis for two companies. Compare the composition of their Assets (what part is Current Assets and what part is Non-Current Assets). Also compare their inventories, accounts receivable and accounts payable, short-term debt and long-term debt. Compare the capital structures of two companies.
(20 points)
Ratio Analysis: compare two companies in terms of liquidity, profitability, leverage and efficiency. Make meaningful conclusions related to the ratio results. Explain which company performs better in every area.
(20 points)
Research the industry performance in year 2022 and summarize the main tendencies. Relate the companies’ performance to the industry trends. Highlight strong and weak points for each company and suggest improvements. Explain how you see the leading company in this industry in the future.
(30 points)
Note that all comparisons should be performed in relative terms (i.e., percentages, ratios, etc.) and not in absolute (monetary) terms.
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