Financial Statement Analysis

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Group Project: Financial Statement Analysis

Your final presentation deliverables include:

- PPT

- Coding links (copy the links and describe them in a word document) for RAG and Agentic AI

- Document (about 3 pages, 1.5 spaced, 11 font, API style including any references) that summarizes how AI assists the group’s financial statement analysis such as, the lessons and tips learned, the challenges remained, the reflection of AI tools in financial statement analysis, good and bad.

- All ratios must be supported either by supplementary files such as excel worksheet to show the steps of calculation, or by the results of RAG and Agentic AI. Formulas used need to be provided clearly.

One submission per group is sufficient. Please submit it using the Canvas homework submission link.

Overview of the Assignment

Select a S&P 500 company, conduct financial statement analysis and provide recommendations to the investors. Specifically, investors seek to answer two questions:

1) Has the firm become more or less financially efficient in the past 10 years? 

2) Should the investors buy, hold or sell the firm’s stock?

The Presentation

Organize your analysis of the issues into the following aspects to answer the above two questions:

· A conclusion that is clear about the recommendations to the investors. Present it at the beginning and the end of the presentation.

· Discuss the economic trend industry economic attributes.

· Conduct peer comparisons (note: picking comparable peer(s) will help).

· What is the firm’s strategy during the time period?

· Conduct the first level of ROA and ROE (trend analysis). Conduct the second level of analysis by using DuPont system to break down ROA/ROE into profit margin, asset turnover, and/or financial leverage. Conduct the third level analysis to understand the specific source of the observed performance trend.

· How did the firm finance its growth?

· Given the firm’s strategy, provide your readings of its performance during the period and provide investment recommendations, specifically, strong buy, buy, hold, sell or strong sell.

Make sure your analysis is data driven and evidence supported. Make sure you provide references at the end of the presentation.

Due Dates

This assignment should be submitted by the last day of the class.