or this assignment, anniversary of you should accept two companies. When you accept two companies, you should accomplish abiding that two companies are from the aforementioned industry. One aggregation is advised your aggregation and the alternative is advised competitor. Once you accomplish a accommodation about two companies, you should let me apperceive what your choices are via email afore you proceed.
Companies called are: Southwest Airlines and United Airlines. My aggregation is Southwest Airlines... My adversary is Unites Airways.
The afterward are the questions you should answer. You can acquisition 2015 & 2016 Antithesis Area and Assets Account at finance.yahoo.com.
1. (Common-size Antithesis Area & Common-size Assets Account Analysis)
1) With 2015 & 2016 antithesis area & Assets account for anniversary company, actualize accepted -size antithesis bedding and common-size assets statements.
2) Using 2016 common-size antithesis area and assets statement, analyze your aggregation with the criterion and call how your aggregation is agnate to or altered from the benchmark.
3) Using 2015 & 2016 common-size antithesis area and assets account of anniversary company, do the time trend assay and call how anniversary aggregation changes over time.
2. (Financial Arrangement Analysis) Using 2015 & 2016 Balance area & Assets account for anniversary company, compute the afterward banking ratios for anniversary company:
1) Current ratio
2) Quick ratio
3) Debt-to-equity ratio
4) Times absorption becoming arrangement (Interest advantage ratio)
5) Inventory Turnover
6) Receivable turnover
7) Total asset turnover
8) Profit margin
9) Return on Asset (ROA)
10) Return on Equity (ROE)
11) Price-earnings ratio
12) Market-to-book ratio
3. (Financial Arrangement Analysis) Select the criterion for associate accumulation analysis. You'll use two kinds of benchmarks in this assignment. One is your competitor's ratios and the alternative is industry averages (you can acquisition industry averages from finance.yahoo.com or www.reuters.com or investing.money.msn.com). Accomplish abiding that you adduce the antecedent of industry averages.
1) Using the 2016 ratios from Question 2, analyze your company's ratios to both competitor's and industry averages. Then call how acceptable or bad ratios of your aggregation are considered.
2) Using 2015 & 2016 ratios for your company, analyze your company's 2015 ratios with 2016 ratios and call the similarities and differences.
4. (DuPont Identity)
1) Using the DuPont Identity equation, analyze your company’s 2016 ROE with competitor’s 2016 ROE. Acquisition out what makes aberration in ROEs amid your aggregation and competitor.
2) Using the DuPont Identity equation, analyze your company’s 2015 ROE with 2016 ROE. Acquisition out what makes aberration in ROE amid two periods if there is any difference.
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