Financial Analysis: Comparing Company A and Company B

by | Jul 3, 2024 | finance

Public companies regularly disclose helpful financial information to the public, providing a plethora of quantitative data for analysis.

Financial statements provide a statistical road map to the inner workings of a company. Prepare a PowerPoint presentation of a financial analysis that includes the balance sheet, income statement, and statement of cash flows of your two firms. Your analysis should also accomplish the following:

Include the last three years of data, and evaluate the trends in the data.
Summarize the footnotes on each of the statements.
Compute the earnings per share for the three years.
Compare the two companies and determine the insights gathered from the trend analysis.
Read the following article for a guide on financial statement analysis:

The Beginners’ Guide to Reading and Understanding Financial Statements

Deliverable Requirements: Your financial analysis presentation should have at least 15 slides. Limit the text on each slide, and use visuals to help engage your audience. The Notes section of the presentation should provide your analysis of the data presented. APA references must be included within the presentation.

Sample Answer

Sample Answer

 

Financial Analysis: Comparing Company A and Company B

Slide 1: Introduction

– Title: Financial Analysis of Company A and Company B
– Introduction to the importance of financial statement analysis

Slide 2: Company Overview

– Brief overview of Company A
– Brief overview of Company B

Slide 3-5: Balance Sheet Analysis

– Present the balance sheets for the last three years for both companies
– Evaluate trends in assets, liabilities, and equity
– Include footnotes summary for each balance sheet

Slide 6-8: Income Statement Analysis

– Present the income statements for the last three years for both companies
– Analyze revenue, expenses, and net income trends
– Summarize footnotes related to the income statement

Slide 9-11: Statement of Cash Flows Analysis

– Display the statement of cash flows for the last three years for both companies
– Evaluate cash flow from operating, investing, and financing activities
– Summarize footnotes related to the statement of cash flows

Slide 12: Earnings Per Share (EPS) Calculation

– Compute the earnings per share for each of the three years for both companies
– Interpret the EPS trends and implications

Slide 13-14: Comparison and Insights

– Compare the financial performance of Company A and Company B based on the trend analysis
– Determine key insights and implications from the comparison

Slide 15: Conclusion

– Summarize the key findings from the financial analysis
– Highlight any significant differences or similarities between Company A and Company B

Notes Section

– Provide detailed analysis and explanations for each slide in the presentation
– Include APA references for any external sources used in the analysis

By following these guidelines and structuring your presentation accordingly, you will be able to create a comprehensive financial analysis that effectively compares Company A and Company B based on their financial statements.

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