FINC 3441 Term Project
Instructor: Feng Jiao
Overview You have just started an internship at Workshire Bathaway (or “WB”), a large and very successful conglomerate in New York. You cannot believe your good fortune at working and learning at such a prestigious firm, and in fact have the opportunity to work directly with its President and CEO Ms. Wren Baker. In order to assess your understanding of financial reporting and financial analysis Ms. Baker has tasked you with identifying a company that WB may want to purchase. Given the almost unlimited resources of WB it does not matter how big the potential target is, what industry it is in, whether it is public or private, where it is located globally, etc. Seeing the perplexed look on your face, Ms. Baker has provided some more specific instructions below.
To make an investment recommendation Ms. Baker asks that you select two similar companies for analysis, use data from public sources, prepare an extensive financial analysis, then communicate the results of your analysis in a detailed written report, and highlight the results in a short presentation. The goal is to provide an investment recommendation to Ms. Baker. Ms. Baker notes that this project will build your critical thinking, software usage, and communication skills.
Part 1: A written report that includes the following:
A. Company profile: An overview of the companies that includes a description of the business operations, the industry in which they operate, their products, their markets, and competitors. This is very important to provide Ms. Baker with an understanding of the potential business purchase.
B. Company news: summarize at least 1 major event that have affected each company or their industry over the past two years.
C. Financial statement analysis: prepare and analyze condensed, trend and common size financial statements for each company.
D. Ratio analysis: prepare a comprehensive analysis of financial ratios for the companies focused on its profitability, efficiency, liquidity, and solvency. Where applicable compare to industry or competitor information and norms.
E. Research summary: Answer the following question in written form: Which of these two companies do you recommend WB to purchase? Prepare a written summary of your analysis and supported investment recommendation.
