BUS329 : The two Firms are Google and Tesla Ranking firms From the Viewpoints of a Credit Rating Agency and a Stock Market Analyst Guidelines: Investment Analysis Assignment, MU, Singapore

The two firms are Google and Tesla Ranking firms from the viewpoints of a credit rating agency and a stock market analyst Guidelines: Select any two firms of your choice (two firms may be taken from any market; however, guidelines on how to download data related to Australian market) Download at least five years’ financial statements (yearly data) and conduct the following analyses:

(1) Use ratios in which credit rating agencies would be most interested in and rank the firms in terms of their creditworthiness.

(2) Use ratios in which a stock market analyst would be most interested in and rank the firms in terms of their attractiveness for investment purposes.

You need to analyze the ratios in detail to assign an appropriate ranking of your selected firms. The firm that exhibits better creditworthiness should be ranked 1 followed by the second firm.

Similarly, the firm that is relatively more attractive from a stock market analyst’s point of view should rank 1 followed by the second firm. The assignment is as follows:

(a) Executive summary: Summarise the whole report to reflect the problem and findings of the report.

(b) Introduction: In this section briefly discuss the importance/significance of financial statement analysis for investment purpose and introduce the case.

(c) Data description: This section should include the following:

(i) Names and descriptions of the selected firms. This also should include the nature of the businesses of the selected firms.

(ii) Names of the ratios selected for (1) and (2) above

(iii) Data period (for example, “this assignment/report uses 10 years’ financial statements from 2010 to 2020”)

(d) Financial analysis: This section includes your analysis of two types of ratios: ratios credit rating agencies are interested in and ratios stock market analysts are interested in. You should include various statistical parameters (such as mean, standard deviation, etc.) and graphical representations of data in your analysis.

(e) Recommendations: In this section make your recommendation based on the analyses made in section (d) above. Recommendations must be supported by appropriate arguments derived from the financial analysis in section (d) above.

(f) Conclusion: This section should summarise your analysis and findings and also discuss their implications for investments.