Step 1. As a group, choose an industry and then have each group member pick a company in that industry. The company should be publicly traded so that financial records are easily available.

Step 2. Each group member should review the annual report and the three key financial statements for the chosen company and prepare a brief analysis of the company’s financial situation. Then calculate the ratios covered in this chapter and find three other ratios that are meaningful to your analysis.

Step 3. When your report is completed, combine your information with the information from other members of your group into an industry analysis and determine how each company compares to its industry. Did the conclusions from your independent analysis change once you saw the analyses of other companies in the industry?

Step 4. As a group, prepare a presentation summarizing your findings for the ­industry and each company in the industry and present it to the class.