Financial Statement Analysis
Consider the annual reports of Nike and Adidas for a period of 4 years. Using the different financial ratios, we covered in this course you are required to 1) critically evaluate the financial statements individually across the 4-year period and cross-sectionally and identify their main strengths and weaknesses, and 2) make recommendations for future improvement.
Note: Students are expected to comment on the change of company financial performance (income statement) and position (balance sheet) during the 4-year period of examination by looking at the main accounts and how they have changed (information may be taken from the notes to the accounts). The aim of this assignment is to familiarize students with the information content of annual reports
some terms in class notes: Earnings per Share (EPS), cash and stock dividends, comprehensive income, FIFO, LIFO, Just-in-time, the gross profit method, Direct Method: Interest and Dividends Received, the indirect method, Quick ratio, debt equity ratio, income per share, ROA, ROE
Tips to achieve the highest success
· The answers should be clear and well presented
· There should be no mathematical errors, you have adequate time to do this properly.
· Show real understanding in any open questions.
· There are marks for presentation
