Financial Analysis Project- ECA & CNQ

1.0 Executive Summary This report presents a monetary valuation 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 oil color business is judge to worsening by about 46% betwixt 2003 and 2015; natural gas production is expected to decline by about 2.5% over the next decade, these two companies are expected to overcompensate growing due to their aggressive schema to secure 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: * twain ECA and CNQ will be profitable in time to come and continue to gene stray positive operating funds flows. * both companies appear to be attractive for investment. Comparatively, CNQ seems to be more(prenominal) attractive still based on the open foodstuff price and P/E ratio. * Both companies appear liquid. However, ECA has high liquid than CNQ. * The body process ratios provide evidence that both companies come a effectual control of their business components. * The debt, interest coverage, and funds flow ratios head that both companies appear to be low long-term solvency risk. Their solvency bit supports their growth strategy.

The companies have available the resources to grow and respond to competitive pressures. We use FASP to prepare pro forma financial state ments, including the projected sense of equ! ilibrium sheet, the projected income statement and the implied statement of property flows for two companies. virtually 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