Financial Analysis and Recommendation Project: Course Name & Semester

This assignment presents a financial analysis of three companies using their income statements, balance sheets, and cash flow statements. The analysis focuses on key financial metrics such as the debt-equity ratio, cash flow from operations, liquidity, and profitability to assess the financial health and performance of each company. The student provides recommendations to a board of directors, suggesting which company is in the strongest financial shape and which is performing the best. The analysis highlights the strengths and weaknesses of each company, providing insights into their sustainability and suitability for potential investment or acquisition. The report concludes with a recommendation of which company to purchase, based on the overall assessment of the financial data.

Make Your Recommendation Course Project
In this project, you will review the financial statements for the three companies provided
in the course. Use the skills and concepts you covered in this course to analyze the
three and make some decisions about which is in the strongest financial health. Imagine
that you are serving as a consultant to your board of directors, and you’ve been asked
to give your opinion about which of the three companies is in the best financial health.
Be sure to cite specific information from the income statements, balance sheets,
and cash flow statements to strengthen your case.
Your goal is to demonstrate that you know how to read each of these statements and
can make some reasonable analysis from them.
Complete the grid below to make your brief recommendation to the board.
Make Your Recommendation
Which of the three
companies is in the
strongest financial shape?
Which of the three
businesses is performing
the best? How do you
know that?
Try to support your
answer with specific
financial information.
Considering the overall performances of all the
companies it is suggested that Astrobucks is in the
strongest financial shape. The reason behind that is the
debt equity ratio of the company is lowest among all that
signifies that its solvency position is best among 3.
Further, if the cash flows statement is considered it can
be identified that Astrobucks cash flow from operation is
highest among all that signifies that it is in best position
to meet the short term obligations from the cash available
from operations. However, if the business performance is
considered it can be stated that Krunchy Ksust is
performing the best. The reason behind the same is that
liquidity position measured through current ratio is best
for Krunchy Krust and moreover it has been improved
over the years. Further, considering the profitability ratio
it can be identified that Krinchy Krust is most efficient in
converting its sales revenue into net earnings after
meeting all the operating and tax expenses.
What can you infer about
these companies from
looking at their financial
statements? Try to show
Looking at their financial statement it can be stated that
though the liquidity position of and profitability position of
Astrobucks and Krunchy Krust has been improved over
the years, White Mountain has improved its solvency

that you can analyze the
financial statements.
position through reducing the debt equity ratio
significantly. Hence, considering the overall performance
it can be stated that all the companies are sustainable for
long term. However, one company is considered for
purchase Krunchy Ksust is best option to be purchased
among the three.