6 pages
APA
SOURCES:4
Analysis of Financial Statements ProjectTarget Corporation vs. Wal-Mart Stores Inc.Discount Retail I
Written Report
1. Perform the quantitative analysis of profitability and risk ratios.2.Compare two companies in the same industry based on the financial ratios you calculateabove. Interpret your main findings for the analysis of the financial ratios.
(1)Do atime-series analysis for each firm first. Analyze trends in firms’ performance interms of profitability and risk. Explain those financial ratios that have changedsignificantly over time. It’s helpful to read the Management Discussion and Analysissection of the annual report to shareholders or the Form 10-K to find explanations forthe time-series changes.
(2)Docross-section comparisons across two firms over time. Compare two firms’performance in terms of profitability and risk. Explain those financial ratios thatdiffer significantly across firms.
3.Identify the financial problems that may have impact on the sustainability of profits
4.Make investment recommendations to potential investors based on your analysis andcomparisons.
Grading rubic
(1)Composition (40 points): The project report is well organized and clearly written and includes appropriate citations for quoted materials based on the project guidelines posted online.
(2)Content (40 points):The project report demonstrates complete time-series analysis and cross-section comparisons in terms of profitability and risk based on your supporting documents including Excel spreadsheets and financial annual reports.
(3)Conclusion (20 points): The project report has a logical conclusion supported by
analyses and provides insight into the firms’ financial performance and investment
recommendation.