BUSX TU Fitness Financial Analysis of American Peloton Company

As a newly hired intern, your boss wants to give you a meaningful project that affords all of you the opportunity to demonstrate your critical thinking, technology, and communications skills by assigning you to develop a comparative financial analysis–one of many types of analyses developed at your firm. As such, you are to compare the financial information of Peloton (PTON) to that of a leading competitor (e.g., Soul Cycle, Nautilus, Echelon).

For the assignment, you are required to conduct a basic comparative financial analysis of Peloton (PTON) versus a competing company within the industry. To accomplish this, you must evaluate five key indices of financial strength in order to make a comparison:

• Stock price for one year, six-months, and intra-day – Market Demand
• Quick ratio – Liquid Assets
• P/E Ratio – Performance
• Net Income for three years – Growth
• Earnings per Share (EPS) – Profitability

Based on your evaluation of these indices, you are required to answer several questions–

• What was your rationale for selecting the competitor to serve as a measure for the analysis?
• What is Peloton’s overall financial position compared to the competitor?
• Based on each individual index, how does Peloton’s financial performance compare to that of its competitor?
• What were the most important indices (out of the five) that you used to make this comparison?

To begin, I want you to structure your document by answering the three audience questions–

• Introduction – So what?
• Body – What’s the story?
• Next Action – What’s next?

Next, I want you to focus on answering the assignment-specific questions of the financial analysis assignment–

Which company is in a better financial position?

• Based on an evaluation of each index, how does each company compare?
• What was your rationale for selecting the competitor?
• What were the most important 2-3 indices when determining the position?
• Place the file in your Financial Analysis folder in Dropbox.