Annual Report Project

The Annual Report Project will be a financial analysis of either McDonald’s, Home Depot, or Kellogg. You will be using Chapter 17 to analyze these companies for two years. Use pages 855-857 as a guide for your analysis (for students with e-books, this is the Illustrative Problem at the end of Chapter 17). You should have eighteen (18) ratios for each of the two most recent years. At the end of the report, you will write a review of your work. You will indicate a couple of areas where your company is doing financially well and a couple of areas where the company could improve. You should conclude with your overall assessment of the financial condition of the company. This report is to be typed using Word or Excel. You will lose points for analyzing the wrong years.General Guidelines: Typically, this assignment is 3-4 pages long:1 page of financial ratios for two years (the most recent year audited AND the prior year)· Please be sure to show your work for each ratio. This includes displaying the equation and then representing each component with numbers for both years.2-3 pages explaining and interpreting the data and drawing conclusions as to the financial well-being of the company.· You should include an introduction to briefly describe your company and the objectives of your report.· Select six of the ratios you have performed and compare those to one or two competitors. You must include a variety of liquidity/solvency/profitability ratios. This will require you to look at the financial information of a competing company. Explain why you selected those particular ratios and what each one means.· Do NOT select working capital as one of your six ratios.· Be sure to present your findings in a meaningful way.It is not enough to say “The current ratio for 2017 was 2.5.” A statement like that has no meaning without the proper context. Add details such as answering the following:o What does this ratio measure?o What was that ratio last year?o What factors do you believe contributed to the increase or decrease in this ratio for your company?o Is a higher ________ ratio favorable to a company or is it unfavorable?o What was the ________ ratio for the competitor?o Did the competitor’s ________ ratio increase or decrease from the prior year?o What does this ratio say about the company’s financial position?· Your conclusion should explain your overall assessment of the company.· Checkpoint Deadlines: Feb 11th (18 ratios calculated for both years and competitor selected).Feb 25th (6 comparison ratios calculated; at least 2 ratios analyzed).
For McDonald’s – Please see the following:*Current (2018) Annual Report McDonald’s 2018 Annual Reporthttps://www.annualreports.com/HostedData/AnnualReportArchive/m/NYSE_MCD_2018.pdf*Prior Year (2017) Annual Report McDonald’s 2017 Annual Reporthttps://corporate.mcdonalds.com/content/dam/gwscorp/nfl/investor-relations-content/annual-reports/McDonald%27s%202017%20Annual%20Report.pdfLinks to an external site.For Home Depot – Please see the following:* Current (2018) Annual Report HD_AR_Soft-Copy (2018).pdf Download HD_AR_Soft-Copy (2018).pdf*Prior Year (2017) Annual Report HD_AR_Soft-Copy (2017).pdfFor Kellogg’s – Please see the following:* Current (2018) Annual Report Kelloggs – NYSE_K_ (2018).pdf*Prior Year (2017) Annual Report Kelloggs – NYSE_K_ (2017).pdf