Accounting professionals are often asked to provide financial statement analysis for a variety of reasons and audiences. Internally, such evaluations of a company’s health and value may be used to inform decisions regarding redeployment of assets or improved operational performance. Externally, they may be used in making credit or investment decisions. In this project, you will put course concepts into practice by preparing a financial analysis and valuation report on a company you selected from an abbreviated list of the S&P 500 and compare it to a chief competitor. In the report, you will evaluate the financial health of the company, its future prospects, and its current value based on the public financial statements required by the Securities and Exchange Commission. You will also identify opportunities for enhancing operational performance and discuss whether you would recommend investing in the company based on your analysis of the statements.
In this assignment, you will demonstrate your mastery of the following course outcomes:
ACC-345-01: Analyze financial statements to determine the financial health of a company
ACC-345-02: Perform a valuation calculation of a company to address the needs of various audiences and purposes
ACC-345-03: Perform an economic and industry analysis to project a company’s future performance
Prompt For this project: you will produce a financial statement analysis and valuation report that summarizes the financial health, projected future performance, and estimated value of the publicly traded (S&P 500) company that you selected at the beginning of the course. As an independent financial accounting analyst working for a major trade journal, your report is intended to inform a general audience about the overall financial well-being of the company and how it compares to a major competitor. Your report should cover information of interest to both internal and external stakeholders—summarizing major findings, suggesting ways to improve operational performance, and assessing investment potential. Keep in mind that brief, clear communications are essential in effectively reaching business and media audiences.