Computer Science homework help. Financial Statement Analysis CONCLUSION
Your conclusion is the final piece of the financial statement analysis. you will make two recommendations:
- Is this a company you would recommend investing in?
- Is this a company you would recommend lending money to?
Your conclusion will give me both of your recommendations – investing and lending – along with the data to support your conclusion.
When analyzing whether to invest in a company, here are some things to look at:
- Profitability ratio – Is this improving or declining?
- Earning per share (from the Income Statement) – Is this improving or declining?
- Income Statement – Gross Profit, Operating Income and Net Income – Is the company operating a profit or loss? Is the net income increasing or decreasing over time?
- Other ratios – are they improving or declining?
- Stock research – how does your company look? Do they pay dividends?
When analyzing whether to lend to a company, here are some things to look at:
- Z-Score – Is the company bankruptcy prone or not?
- Debt ratio – Is the company improving or declining
- Statement of Cash Flows – Look at Operating Activities. Is the company operating with positive cash flows?
- Long-term debt – Does the company have a lot of debt already on their books?
- Current ratio – Is the company in a position to pay the debt that is due in one year?
This list is just an example, you should incorporate other information you have found as well.
If you have data from the recent COVID-19 virus, that is also important. In this case, you will provide all the information from data you have collected and analyzed but you will also include the facts/data that have occurred over the last couple of months.