Analyze the recent annual financial report of the assigned company(PACCAR). A c

Analyze the recent annual financial report of the assigned company(PACCAR). A copy of the financial report should be readily available online for your use. Based on the content of the financial report and supplemented by your research, respond to the instructions and questions presented below, limiting your analysis to no more than five-typed written pages (using standard margins and line spacing) and a one-or-two-page appendix containing a table of relevant analytical ratios prepared in Microsoft Excel.
All questions and instructions below refer to the most recent year reported and at least two prior years (but no more than five years including the just reported current year) to enable trend analysis. Be sure to limit your financial analysis to the common measures described in the Financial Analysis Lecture Notes and as further discussed in class, using only the lecture notes and selected portions of the textbook as a primary reference.
1. Provide a brief overview of the assigned company, the type of business it engages in, and any significant recent events affecting the company’s operations or financial position.
2. Discuss briefly the auditor’s report, the role of the auditors, and the significance of the report to the corporation and to the external users of the financial statements.
3. Evaluate and comment on the following based on analysis and research:
a. Liquidity – ability of the firm to meet its short-term obligations as they come due;
b. Profitability – effectiveness of the firm in generating earnings;
c. Solvency (or financial leverage) – extent to which long-term debt finances the firm’s assets; and
d. Efficiency (or working capital management) – quality of the firm’s management of its accounts receivable and inventory;
4. For each of the above measures, how does the company’s performance compare to past trends, similar firms, or industry-wide averages?
5. Based on your analysis and research, what strengths and weaknesses, if any, do you see in the financial status and operating performance of the company, and what steps would you recommend, if any, for improvement?
Be sure to support your discussion, opinions, and conclusions fully. Remember that evaluation requires some comment and analysis, not just a computation of ratios. At a minimum, be sure to use the ratios highlighted in the Financial Analysis Lecture Notes (cross-referenced to the relevant chapter in the textbook) and to show all computations. Also note that actual financial statements may contain terminology or non-typical items that are not covered in the textbook. You are encouraged to research other sources and do some additional reading to learn about any unusual items you may observe.
For competent comparative data involving similar firms or industry-wide averages, refer only to Value Line Investment Surveys, Standard and Poor’s Industry Survey, Dun & Bradstreet Industry Norms and Key Industry Ratios, Risk Management Association (formerly Robert Morris Associates) Industry Ratios, Moody’s or the Wall Street Journal. Most are available in the library (for guidance, see Business & Economics Librarian Reference I and II posted on Canvas under Financial Analysis Project). Be sure to document references to these sources in the standard manner. Note: Detailed common-size financial statements, like those indicated in the lecture notes for this project, are not required. To facilitate instructor review, attach to your report a copy of the relevant pages of your firm’s financial statements cross-referenced where appropriate to your table of analytical ratios.
please only do the section 3 green highlighted segment and 4. don’t need to do the rest of the section. please continue typing it on the “financial analysis report”(attached docx file). There are also the attached “financial analysis lecture notes”(PDF file) and the research assignment details(PDF file). Also, provide the excel sheet in calculating the analytical ratios of liquidity and profitability. Don’t forget to document the reference sources for section 4 as mentioned in the assignment details. Also, upload the recent financial report of PACCAR as well.