Financial Analysis Project- ECA & CNQ

1.0 Executive Summary This report presents a monetary military rank of dickens Canadian cover and gas companies, Encana Corporation (ECA) and Canadian natural Resources Limited (CNQ). These ii Canadian owned companies be amongst the most(prenominal) dynamic and rapidly resurrecting companies in this industry. Although the conventional crude oil color exertion is anticipate to worsening by about 46% amongst 2003 and 2015; natural gas production is expected to decline by about 2.5% over the next decade, these two companies are expected to reach out growing due to their aggressive schema to bargain for other companies, diversify internationally, and invest in oilsands projects for incoming oil production. The assessment of two companies most recent years monetary statements shows the fol pitiableing results: * both(prenominal) ECA and CNQ will be profitable in approaching and continue to gene stray positive operating funds flows. * both(prenominal) companies a ppear to be attractive for investment. Comparatively, CNQ seems to be more(prenominal) attractive only based on the open foodstuff price and P/E ratio. * Both companies appear liquid. However, ECA has high liquid than CNQ. * The exertion ratios provide evidence that both companies come a heavy control of their business components. * The debt, interest coverage, and funds flow ratios intimate that both companies appear to be low long-term solvency risk. Their solvency fix supports their growth strategy.

The companies have available the resources to grow and respond to agonistic pressures. We use FASP to pr epare pro forma financial statements, inclu! ding the projected residuum sheet, the projected income statement and the implied statement of property flows for two companies. more or less assumptions were applied in forecasting the two companies pro forma financial statements. Especially, we assume the sale growth rate in the future for both companies is 5% based on the two companies diachronic growth rate , industry environs and the two companies oil and... If you want to get a near essay, order it on our website: OrderCustomPaper.com

If you want to get a full essay, visit our page: write my paper