This project will consist of preparing two reports.
Report 1: a comparative financial analysis of Eagle Bulk Shipping and DryShips, for the years 2008 – 2011. What you will do is use analytical techniques to evaluate the relative financial health of both of these organizations. Will your analysis show that Eagle Bulk Shipping was in greater financial trouble? We’ll see. DryShips’s balance sheets and income statements are on pages F-6 and F-7 of their 2011 20-F and pages F-7 and F-8 of their 2009 20-F. Eagle Bulk Shipping’s income statements and balance sheets are on pages F-4 and F-5 of their 2011 10-k and pages F-4 and F-5 of their 2009 10-k. For your information, the form 20-F is required from foreign companies, both non-U.S. and non-Canadian companies, whose securities are traded in the United States. The goal of Form 20-F is to standardize the reporting requirements of foreign-based companies so investors can evaluate these investments alongside domestic equities. Form 10-k is required to be filed for U.S. based companies with publicly traded stock. The benefit of this analysis is to expose you to analytical techniques that will be useful in assessing the financial health of businesses. Industry averages are available to compare analyses with, but for this project all you need do is compare Eagle Bulk Shipping with DryShips. You will be given instructions by chapter on the analyses to be performed. Your finished product is to be prepared in Microsoft word, logical, and easy to follow. Be careful not to have analyses split inappropriately by page breaks. Your final report should have all detailed analyses you are instructed to do, with an assessment made after each comparative analysis. Also, an executive summary is to be prepared and shown at the beginning of your paper, giving your final judgment of the relative financial health of Eagle Bulk Shipping and DryShips, giving reasons for your conclusion regarding the relative strengths of each organization. Your analyses are to be to the point and brief, easy to follow and understand.
Report 2: a report on various disclosures in the 2011 Eagle Bulk Shipping 10-k. Please only refer to the 2011 10-k when answering questions for this part of the assignment. You will be examining the financial statements (balance sheet, income statement) and the footnotes following those financial statements. You need not refer to any other material in the 10-k. Your answers are to be typed, immediately below the question asked. They should be easy to understand and follow. They should not consist of numbers, alone. For example, if asked “What was the total current assets for Eagle Bulk Shipping?” your answer should not simply be $55,890 thousand, instead your answer should be “Current assets for Eagle Bulk Shipping for 2011was $55,890 thousand, as reported on page F-4.” Include the page number from which the information was obtained.
Begin your paper with an executive summary of conclusions derived from Report 1. This executive summary is to be no longer than 1 page.