Analyzing various financial statements

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Reference no: EM133210649

Question:

One critical component of financial analysis involves comparing a firm's financial statements with other firms in the industry. Through such a comparison, financial managers can reveal useful information about risks, investment opportunities, market indicators, and economic factors.

Throughout this course, you have been researching and analyzing various financial statements for Deere & Company. For this Final Paper, you will culminate your analysis with an in-depth comparison of Deere & Company and Caterpillar Inc.

Q2-2021

In your project, you will complete the following items based on the files you downloaded above:

Examine the four primary financial statements for each firm and address the following:
- Statement of Cash Flows:
  - Compare the statement of cash flows for the two firms, noting the major inflows and outflows of cash.
- Income Statement:
  - Compare the income statements for the two firms, noting the issues each one faces regarding sales projections.
- Balance Sheet:
  - Compare the balance sheets for the two firms, noting any issues each firm may want to address regarding liability, and how each firm might be impacted by increasing interest rates.
- Shareholder Equity:
  - Calculate the shareholder equity for each firm.
- Calculate the following ratios and trend analyses on each company:
  - ROI analysis
  - Ratio analysis, to include the following ratios:
    - Profit Margin
    - Return on Assets
    - Return on equity
    - Receivable Turnover
    - Average Collection period
    - Inventory turnover
    - Current ratio
    - Working Capital
    - Debt to total assets
    - Debt to equity
    - Earnings per share
    - Price to Earnings ratio
  - Horizontal, vertical, and trend analysis of financial statements

Reference no: EM133210649

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