Cаlсulаte, аnalyse and cоmpare the appropriate ratios and trends of these two companies, and write down the financial as well non-financial (if any) indicators of a distressed company that you get from this comparison.
Use the following guidance to structure your answer:
• Executive summary: In this section, briefly discuss the purpose of this report, and the key indicators of a distressed company you identify from your analysis. (Maximum 180 words)
• Introduction: In this section, state the purpose of this report, and provide a brief description of the two companies. Please cover the industry the companies are in, the industry segments, and their business models. (Maximum 270 words)
• Methodology: Briefly discuss the ratios, trends and any other indicators you use in this analysis. Please supply the rationale for your choice of these ratios, trends and indicators. (Maximum 270 words)
• Findings: Provide a detailed analysis of the financial performance, cash flows and overall financial condition of the two companies. Please use the relevant indicators (i.e., ratios and trends) calculated above to support your conclusions. Also, discuss any financial reporting quality issue you find relevant here. (Maximum 1000 words)
• Conclusion (maximum 170 words)
• In the Appendix, provide the accounting ratios used along with their calculations in two separate tables.