Final Course Project

Final Course Outline

Final Course Project

Introduction

This final project includes a complete business analysis of two different companies i.e. Capital Senior Living Corp (CSU) & Emeritus Corp (ESC). The business analysis of these two companies mainly focuses on financial position of the two companies. Mostly when a company is analyzed in terms of its financials there are a number of things and ways through which it can be analyzed as well as, there are a number of prospective too. Most of the companies are doing it to match their performance with the competitors of the same industry while other does it to analyze their performance with the industry average (Comparative analysis). On the other hand, most of the companies are doing it to analyze their current position so that they can improve it. The two companies are also analyzed vertically and horizontally so as to identify the position in comparison with the other.

Discussion

Company analysis on the basis of Vertical & Horizontal

Analysis of the Financial Statements

Analyses of companies are based on comparisons, whether made ??by or on some indices as indicators. An analysis of the technical implementation simpler and at the same time more important as regards the wealth of information is the horizontal and vertical analysis. When companies are analyzing their financial statements or stakeholders analyze the financial statement having their own reasons, they use certain techniques to analyze the position of the company in order to get the true and correct picture. However, this process of analysis is completed with similar values ??obtained in the same financial statement, and also by the evolution of the absolute amounts and results over time, allowing you to check up their future trends and developments. Therefore, comparisons of values ??over time and in the same relational demonstration are developed respectively by horizontal and vertical analysis.

Horizontal analysis

Vertical analysis

General Information regarding Analysis

Vertical analysis

The vertical analysis is considered as one of the main tools for structure analysis. It consists of a sheet which determines the percentage of each account or group of accounts each the balance sheet, the total value of the assets or liabilities. Similarly the vertical analysis determines the proportionality of the statement of accounts result in relation to Net Sales, regarded as its base. Regarding the balance sheet, it always tries to show the proportion of each of the sources and on the other hand, the percentage expression of each of the various uses of funds made ??by the company.

Horizontal Analysis

The Horizontal Analysis is a technique that determines the part of comparison of the value of each item in the financial statement regarding each period, with the corresponding values in a given period previously considered. This analysis aims to show the evolution of each account (or group of accounts) when considered in isolation. Vertical analysis complements, which tells us the increase or decrease of the proportion of a particular expense in relation to a given total but, it does not tell us whether this variation was derived from ...