Financial analysis with an in-depth comparison of Deere & Company and Caterpillar Inc.

One critical component of financial analysis involves comparing a firm’s financial statements with other firms in the industry. Through such a comparison, financial managers can reveal useful information about risks, investment opportunities, market indicators, and economic factors.

For this paper, you will culminate your analysis with an in-depth comparison of Deere & Company and Caterpillar Inc.

In your project, you will complete the following items based on the files: 

Examine the four primary financial statements for each firm and address the following:

• • Statement of Cash Flows:
    • Compare the statement of cash flows for the two firms, noting the major inflows and outflows of cash. 
  • Income Statement:
    • Compare the income statements for the two firms, noting the issues each one faces regarding sales projections.
  • Balance Sheet:
    • Compare the balance sheets for the two firms, noting any issues each firm may want to address regarding liability, and how each firm might be impacted by increasing interest rates.
  • Shareholder Equity:
    • Calculate the shareholder equity for each firm.
• Calculate the following ratios and provide a trend analysis on each company: 
  • ROI analysis
  • Ratio analysis, to include the following ratios (please be sure to show calculations): 
    • Profit margin 
    • Return on assets 
    • Return on equity 
    • Receivable turnover 
    • Average collection period 
    • Inventory turnover 
    • Current ratio 
    • Working capital 
    • Debt-to-total assets 
    • Debt-to-equity 
    • Earnings per share 
    • Price to earnings ratio 
  • Create a horizontal, vertical, and trend analysis of the Income statement and Balance Sheet.
• Compare and contrast the two firms in the context of the global economy, noting which types of cultural differences might impact each firm as it does business in other countries.
  • Include examples to illustrate your point.
• Compare and contrast each firm’s global strategic plan based on the information in the annual report from two years ago.
• Propose which company would be better to invest in, based on the above comparisons. Your proposal should include the key metrics you used to make your decision.                                                                                                                                                                                                                                            must be eight to 10 double-spaced pages in length (not including title and references pages) and formatted according to APA Style.
• • must include a separate title page with the following: 
    • title of paper in bold font 
      • Space should appear between the title and the rest of the information on the title page. 
    • student’s name 
    • name of the institution 
    • course name and number 
    • instructor’s name 
    • due date 
  • must utilize academic voice. 
  • must include an introduction and conclusion paragraph. Your introduction paragraph needs to end with a clear thesis statement that indicates the purpose of your paper.
  • must cite and provide reference entries for the required Deere & Company and the Caterpillar Inc. financial documents in addition to the course text. 
  • must document any information used from sources in APA style. 
  • must include a separate references page that is formatted according to APA style.