Costco and Sam’s Club- Financial Statements Analysis

Costco and Sam’s Club- Financial Statements Analysis

As a financial statement analyst, you will compare the financial statements of Costco and Sam’s Club over a period of time.  The financial analysis period must be, at a minimum, the three most recent years.  The Form 10-K reports, which the organizations filed with the SEC, may be the best place to learn about a particular industry, organization, and organizational strategy, and to obtain reported financial statements. You can also find current stock valuation and other relevant stock information from financial portals such as Yahoo finance, Google finance, and Reuters.

Your Portfolio Project must include the following for Costco and Sam’s Club (see below for more detail):

• Executive Summary

• Ratio Calculation

• Ratio Analysis

• Projected financial statements including income statements, balance sheets, and statements of cash flows

• Your opinion on the overall financial health of each company

*The executive summary should include an explanation of the business itself, background information on each company, including product lines, geographical locations and the company’s position in the industry.

The Ratio Calculations should be done in a table in Excel and included with your submission. The following ratios must be included for each company for most recent 2-year period:

• Working Capital
• Current Ratio
• Total Debt to Total Equity Ratio
• Times Interest Earned
• RNOA
• ROCE

The ratio analysis should include an explanation of the importance of each ratio, what the ratio tells you about each company, how the ratio changes from year to year, and which company appears better based on each ratio.

The Projected financial statements should be done in Excel and included with your submission. * You will need to make necessary adjustments for material non-recurring or unusual income or expenses as well as off-balance sheet assets or liabilities, among others as covered in the course. The adjustment will improve comparability and ensure accurate representation of the organization’s’ economic performance. Be sure to identify important assumptions regarding the companies, industry and business environment, and other important assumptions for estimates and forecasts, including their business strategies.

Your opinion of the overall financial health of the company should reflect everything you have learned throughout the course as to the analysis of financial reporting. Please be sure to incorporate key concepts and learnings from the textbook whenever possible.

Your paper must include:

• The financial statements from the companies you analyzed
• The Excel Ratio Table Calculations
• The Excel Projected Financial Statements
•  8-10 page paper covering the information listed above, APA format, not including the title and reference which are required.
• Include the financial statements you analyzed and other information used as exhibits after the reference page.

• Be sure to cite all outside sources included in your research, including the textbook. Provide at least 6 citations other than the textbook and incorporate key learnings from textbook whenever possible.

A PDF version of this text has been uploaded for your reference:

Subramanyam, K. R. (2014). Financial statement analysis (11th ed.). New York, NY: McGraw Hill. ISBN13: 9780078110962 has been uploaded.