Description
Real-World Financial Analysis Project: Comparing a Restaurant and a Bank
In this group project, you will utilize financial analysis skills on two real-world
companies: BJ’s Restaurants (BJRI) and Wells Fargo Bank (WFC). You are expected to collect
official financial data, perform ratio calculations, and interpret the results to assess each
company’s financial health, risks, and performance. The objective is to prepare you for
professional expectations in the job market through practical analytical exercises.
Project Objectives
By completing this project, you will be able to:
❖ Gather and analyze financial data from official company sources (10-K,
investor reports).
❖ Calculate and evaluate essential financial ratios (liquidity, leverage,
profitability, returns, efficiency).
❖ Identify and analyze risk factors and regulatory issues.
❖ Compare performance across industries, such as restaurants and banking.
❖ Present findings in a professional written and presentation format.
Project Instructions
1. Data Collection
Go to each company’s official investor relations site or the SEC EDGAR
database:
o Wells Fargo (WFC): https://www.wellsfargo.com/about/investor-
relations
Download the most recent Form 10-K annual reports (2023 or 2024).
Extract and record the following items for two years (2023 and 2022, or the
latest available):
o Revenue (Sales)
o Operating Profit (EBIT)
o Net Income
o Total Assets
o Current Assets
o Current Liabilities
o Total Liabilities
o Shareholders’ Equity
o Cash Flow from Operations (CFO)
o Capital Expenditures (CapEx)
2. Data Entry & Setup
1. 2. 3. 4. Create your own Excel file (blank sheet).
Manually input the raw data from the 10-K reports into clearly labeled tables.
Ensure consistency in units (millions or billions USD).
Double-check totals and subtotals against the official report to avoid errors.
3. Ratio Calculations formula:
It is necessary to manually create and utilize the formulas within Excel. Avoid reliance
on pre-designed templates.
o Current Ratio = Current Assets ÷ Current Liabilities
o Quick Ratio = (Current Assets – Inventory) ÷ Current Liabilities
o Debt-to-Equity = Total Liabilities ÷ Equity
o Interest Coverage = EBIT ÷ Interest Expense
o Gross Margin = (Revenue – COGS) ÷ Revenue
o Operating Margin = EBIT ÷ Revenue
o Net Margin = Net Income ÷ Revenue
o ROA = Net Income ÷ Total Assets
o ROE = Net Income ÷ Equity
o Cash Flow from Ops ÷ Current Liabilities
o Free Cash Flow (FCF) = CFO – CapEx
Real-World Financial Analysis Project: Comparing a Restaurant and a Bank
In this group project, you will utilize financial analysis skills on two real-world
companies: BJ’s Restaurants (BJRI) and Wells Fargo Bank (WFC). You are expected to collect
official financial data, perform ratio calculations, and interpret the results to assess each
company’s financial health, risks, and performance. The objective is to prepare you for
professional expectations in the job market through practical analytical exercises.
Project Objectives
By completing this project, you will be able to:
❖ Gather and analyze financial data from official company sources (10-K,
investor reports).
❖ Calculate and evaluate essential financial ratios (liquidity, leverage,
profitability, returns, efficiency).
❖ Identify and analyze risk factors and regulatory issues.
❖ Compare performance across industries, such as restaurants and banking.
❖ Present findings in a professional written and presentation format.
Project Instructions
1. Data Collection
Go to each company’s official investor relations site or the SEC EDGAR
database:
o
o
BJ’s Restaurants (BJRI):
Wells Fargo (WFC):
Download the most recent Form 10-K annual reports (2023 or 2024).
Extract and record the following items for two years (2023 and 2022, or the
latest available):
o Revenue (Sales)
o Operating Profit (EBIT)
o Net Income
o Total Assets
o Current Assets
o Current Liabilities
o Total Liabilities
o
o
o
Shareholders’ Equity
Cash Flow from Operations (CFO)
Capital Expenditures (CapEx)
2. Data Entry & Setup
1.
2.
3.
4.
Create your own Excel file (blank sheet).
Manually input the raw data from the 10-K reports into clearly labeled tables.
Ensure consistency in units (millions or billions USD).
Double-check totals and subtotals against the official report to avoid errors.
3. Ratio Calculations formula:
It is necessary to manually create and utilize the formulas within Excel. Avoid reliance
on pre-designed templates.
• Liquidity Ratios
o Current Ratio = Current Assets ÷ Current Liabilities
o Quick Ratio = (Current Assets – Inventory) ÷ Current Liabilities
• Leverage Ratios
o Debt-to-Equity = Total Liabilities ÷ Equity
o Interest Coverage = EBIT ÷ Interest Expense
• Profitability Ratios
o Gross Margin = (Revenue – COGS) ÷ Revenue
o Operating Margin = EBIT ÷ Revenue
o Net Margin = Net Income ÷ Revenue
• Return Ratios
o ROA = Net Income ÷ Total Assets
o ROE = Net Income ÷ Equity
• Cash Flow Ratios
o Cash Flow from Ops ÷ Current Liabilities
o Free Cash Flow (FCF) = CFO – CapEx
4. Interpretation & Comparison
❖ BJ’s Restaurants (BJRI): Comment on liquidity, profitability, and
challenges of scale.
❖ Wells Fargo (WFC): Comment on profitability, leverage, and regulatory
pressures.
❖ Comparison:
o Why does Wells Fargo have higher leverage?
o Why does BJ’s have tighter margins?
o How do industry differences explain ratio gaps?
5. Deliverables (Group Output)
1. Written Report (4–6 pages):
o Group cover page with all members’ names.
o Sections: Introduction, Company Profiles, Ratio Analysis, Risk
Assessment, Comparison, Recommendations.
2. Group Presentation (5–7 slides):
o Summarize findings.
o All members must speak (divide topics).
Group Work Instructions
❖ Students will collaborate in groups of 3 to 5 members.
❖ Each group must designate a Group Leader who will act as the primary
contact with the instructor.
❖ The Group Leader is responsible for:
o Coordinating meetings and assigning tasks.
o Gathering contributions from team members.
o Submitting the final report and presentation on behalf of the group.
❖ Each group must submit one written report and give one group
presentation.
❖ Every member should actively contribute to:
o
o
o
o
Data Collection (gathering financial statements and data).
Ratio Calculation (entering data into the template and verifying
accuracy).
Interpretation (analyzing results and generating insights).
Presentation (creating slides and delivering findings).
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