Based on the problem(s) identified in Part 1: Problem Identification Based on Financial Reports, conduct a
financial analysis and write a summary report that discusses the company’s financial performance.
Perform any calculations using Google sheets, Google Docs, or other spreadsheet software. Address the
following prompts below.
- Identify the company’s short-term and long-term financial sustainability that may exist based on at
least 10 financial ratios. Include ratios from areas of profitability, operations, liquidity, and leverage.
• Using the two competitors researched in Part 1: Problem Identification Based on Financial
Reports, compare the company’s financial ratios and describe the company’s strategic
position. - Identify additional areas where there is a misalignment between the financial performance
measurements and the organization’s mission and goals. Explain how the areas may contribute to
the company’s financial instability. Some examples of areas to consider include:
• Major inflows and outflows on the Cash Flow statement
3
• Decrease in revenue on the Income Statement
• Increase in expenses on the Income Statement
• New or on-going Capital projects
• New product development
Requirements
• Identification and analysis of financial ratios
• Comparison of financial performance to competitors
• Identification and explanation of other misalignments