2. Prepare a report on these companies that includes:
a) The background to each company and its situation and relevance to the industry (or industries) it is associated with.
b) A comparative analysis of the companies that:
i) compares the companies across as many of the dimensions covered in this course as possible: book: Understanding Canadian Business, 8th Canadian Edition
ii) focuses significantly on the financial performance indicators as studied in Unit 6 readings:
Nickels, B., McHugh, J., McHugh, S., Cossa, R., and Sproule, B. (2013). Understanding Canadian Business, 8/e. Toronto: McGraw-Hill Ryerson.
o Chapter 16 – Understanding Accounting and Financial Information
o Chapter 17 – Financial Management
In your assignment, you will compare and contrast 2 companies of your choosing particular attention to financial performance. Remember, even with the ratios you are using and the detail found in the annual reports, you will not have the complete picture. Businesses are continually changing and need to continually adapt to rapid changes in the business environment so at best, these are snapshots of a point in time.
Begin analysis of financial statements using ratios:
1. Liquidity ratio-> Current ratio and acid test ratio
2. leverage (debt),-> Debt to owner’s equity
3. profitability (performance) Ratio -> Basic earnings per share, Return on sales, Return on equity
4. activity Ratio - > Inventory turnover.
This material may consist of step-by-step explanations on how to solve a problem or examples of proper writing, including the use of citations, references, bibliographies, and formatting. This material is made available for the sole purpose of studying and learning - misuse is strictly forbidden.Canada has a growing economy and is proving its place as an international leader. Especially extractive industries are profitable in Canada and in this paper two of them will be described in detail, Suncor Energy and Imperial Oil. Each of them was or is ranked as one of the top petroleum companies in the world; thereforethe two companies prove to be strong subjects to review and analyze. Profitability and environmental policy are two aspects that will be considered of both companies.In addition,annual reports will be examined for both companies, along with management, companystrategy, organization, debt, marketing, human resources and financial statements. Suncor and Imperial Oil are industry leaders with proven records that will be discussed hereafter.
Suncor is the number one gas company in Canada, dealing with extraction of oil sands, conventional and offshore oil and gas production, petroleum refining, product marketing under Petro-Canada brand and renewable energy portfolio (Suncor, 2013). Suncor was founded in 1919 in Montreal as Sun Company of Canada. The company is determined to grow at the rate they are currently growing, which is fairly fast, and to provide new sources of energy when the time comes. The company is at a position to take this next step and has employed a team of highly innovative and motivated employees.
Imperial is a Canadian petroleum company and represents second biggest integrated oil company in the country.It is a significant producer of crude oil and natural gas, Canada’s major petroleum refiner, a key petrochemical producer and a national marketer with coast-to-coast supply and retail networks (Imperial, 2013).
Employee and Environmental policies...