project with references and anaylsis

For this task, analyze the financial health of two competitors in the same industry based on their ratios, using the provided Excel spreadsheet template. Use your selected company and another company of your choice in the same industry. Then, complete your analysis by writing a short synopsis of your findings in the space provided with the analysis. Lastly, respond to the two questions listed below to complete the ratio analysis.

Prompt

Follow these steps to analyze the financial health of your selected company and one of its competitors. Use the Module One Activity Template to complete this task. Complete the spreadsheet by providing the following:

• Ratio Research: Use the Excel spreadsheet template to analyze the selected company ratios (profitability, financial strength, valuation, management effectiveness, dividends, and efficiency) for both of the competitors. To complete this part, you can use the websites CIS Market or Mergent INTELLECT to obtain the ratios. You can also use the SEC Edgar Company Filings resource to obtain the ratio from annual reports. Note: The ratios have to be from the same time period, the same year for both competitors. For training on how to use Excel, visit the SNHU Atomic Learning video training site or search YouTube to view appropriate Excel training videos.
• Industry Ratios: In order to analyze ratios for the companies, you need to obtain the ratios for the industry the competitors operate in. Industry values for the ratios can be found in the index column of the Morningstar Valuation page. If no index value is available, put the five-year averages for both companies in the industry column and use these figures for the industry comparison of your ratio analysis.
• Ratio Analysis: Compare the two companies based on their ratios. Use the last column in the template to detail how each company is doing in relation to the ratios. Explain the significance of how the company ratios compare to the industry and each other.
• Summary: Finish by answering the questions below the analysis section of your Excel spreadsheet.Briefly explain what a ratio analysis is in 1-2 paragraphs. Cite your resources.Based on the ratio analysis, in which company would you be willing to invest and why?

RATIO ANALYSIS
Note: change the column names to your industry and selected companies
RATIOS
[INDUSTRY/INDEX]
[COMPANY #1]
Profitability Ratios (%)
Gross Margin
EBITDA Margin
Operating Margin
Pre-Tax Margin
Effective Tax Rate
Financial Strength
Quick Ratio
Current Ratio
LT Debt to Equity
Total Debt to Equity
Interest Coverage
Valuation Ratios
Price/Earnings Ratio
Price to Sales P/S
Price to Book P/B
Free Cash Flow per Share
Management Effectiveness (%)
Return On Assets
Return On Investment
Return On Equity
Efficiency
Receivable Turnover
Inventory Turnover
Total Asset Turnover
Free Cash Flow/Net Income
What is Ratio Analysis? Briefly explain and cite your resources:
Based on the ratio analysis above, in which company would you be willing to invest and why?
Based on the ratio analysis above, in which company would you be willing to invest and why?
vest and why?
[COMPANY #2]
vest and why?
ANALYSIS
References