Assignment #1 – Financial Comparison Paper
Prepare a 3-page paper using ratios and techniques learned in chapters 5 (Basics of Analysis, 6 (Liquidity of Short-Term Assets; Related Debt-Paying Ability, and 9 (For the Investor). Use the company Apple Inc. (AAPL) and Samsung Electronics Co. Ltd. (SSNLF) as the competitor.
Required Textbook Reference:
Gibson, C. H. (2013). Financial Reporting and Analysis (13th ed.). Mason, OH: South-Western Cengage Learning.
The paper must over the following:
1. Discuss the importance of ratio analysis
2. Calculate 6 ratios for both the company and one of its competitors for 2 years each (24 total ratios).
3. Select 4 industry average ratios to compare the company for the previous year.
4. For each of the ratios explain what the ratio may indicate about the company (compared to the previous year) and why the company may have done better or worse that its competitor.
Example:
| Company | Competitor | ||||
| 2014 | 2015 | 2014 | 2015 | ||
| Ratio 1 | |||||
| Ratio 2 | |||||
| Ratio 3 | |||||
| Ratio 4 | |||||
| Ratio 5 | |||||
| Ratio 6 | |||||
| Company | Industry | ||||
| 2015 | 2015 | ||||
| Ratio 1 | |||||
| Ratio 2 | |||||
| Ratio 3 | |||||
| Ratio 4 |
The paper will be graded on the ability to cite examples from the text or websites (except Wikipedia). HNT: Two websites that are very useful for ratios are Yahoo Finance (finance.yahoo.com) and MSN Money (https://www.msn.com/en-us/money). Follow the strict guidelines for papers (which means all papers will have three sections: Introduction, Analysis, and Conclusion). All papers are to use APA standards and to have at least three (3) citations.
Paper guideline:
Introduction
· Provides an interesting introduction to the work. Clearly states the purpose of the work.
Analysis
· Clearly and fully states the problem and the recommendation. Makes a clear recommendation for the future. Connects to concepts presented in the texts and citations.
Conclusion
· Connects to the introduction in an interesting way. Is short and encompasses all of the main points in the paper.
Grammar, Speech Patterns, Punctuation and APA
· Clearly uses proper grammar, APA format in text citations and for all references. The paper is interesting and easy to read.