Financial Statement Analysis Project & Rubric
Purpose: Students will assume the role of senior management or the board in analyzing the
current financial performance of the firm using peer and trend ratio analysis and the Statement of
Cash Flows.
Deliverable: The final product will be a typed report that includes financial and ratio data and
analysis. Ratio calculations should be calculated in Excel using formulas. The analysis portion
of the report may be completed in Excel or Word.
Steps:
1. Choose a publicly traded firm to analyze. Choices must be approved by the instructor
and only one student may choose each firm.
2. Obtain three years of financial information, including the balance sheet, income
statement, and statement of cash flows.
3. Compile financial information in Excel in such a way that ratios may be easily calculated
for each of the three years.
4. Calculate the ratios discussed in Chapter 17 of the textbook.
5. Conduct peer and trend analysis for each ratio or groups of ratios. Find industry
information or specific firm information to conduct the peer analysis.
6. Conduct trend analysis of the Statement of Cash Flows. Assess this year’s statement for
noteworthy events or activities.
7. Provide an overall assessment of the firm’s financial performance.
Rubric:
Category
Financial Information
Financial statements provided and analyzed
Ratio calculations provided and analyzed
Accurate use of financial statements
Analysis
Accurate peer and trend analysis
Appropriate consideration of the statement
of cash flows
Report Format
Overall appearance
Use of appropriate tables, graphs, etc.
Necessary citations
Ease of use and reading
Grammar, punctuation, spelling, etc.
Overall Summary Analysis
Maximum Points Possible
40
80
40
40
Strong financial support for the summary
Pertinent peer and trend information
included in the final analysis
TOTAL
200
