The 2019 financial summaries of each company are attached.
Introduction of each company (Shell and Exxon)
Business and Industry Environment: Include an analysis of the industry environment.
Discuss/include Porters Five Forces that confront both companies, and the strategies both companies have
implemented to address them.
Include a SWOT analysis. Is the industry competitive, is the industry impacted by the global economy or recent
government regulation, is there a high threat of substitution for the products, etc.
Ratio analysis: Complete an analysis of both companies from the perspective of a financial analyst.
2 liquidity ratios
2 solvency and/or leverage ratios
3 profitability and/or coverage ratios
Provide a written analysis/summary of each ratio and your findings
what similarities and differences do you see in the ratios
what do the ratios mean
based on the ratios, which company is in better financial condition and why
Choose a minimum of 9 ratios you think are most relevant. You must include the following types of ratios:
To ensure an accurate comparison, if your IFRS company does not report in US Dollars, YOU WILL NEED TO
CONVERT THE NUMBERS TO U.S. DOLLARS!!
Make sure you include a TABLE or CHART to provide the comparison of the ratios for both companies. In the
table there should be a side-by-side comparison of the ratios of both companies.
Include a summary or condensed Common-size Income Statements and Balance Sheets for both companies:
Use the statements for the most recent year available!
Provide a analysis of the financial reports.
Identity and explain the differences you found in the two accounting methods and standards: You will likely
come across differences in accounting reports and methods. Identify them and tell me what a financial analyst
would do with that information.
Identify and Explain any Issues or roadblocks: The two companies probably do not display their information the
same way, so you may face challenges comparing the data. Let me know what obstacles you ran into and how
you addressed them.
In your conclusion, tell me which company you feel is more viable and financial sound, and why. (Which
company would you invest in or provide a loan to.)