You are required to select any two companies of your choice from the same industry,(either two Local or two International) and critically evaluate a set of published accounts of these companies for a period of four years. You are then required to submit a detailed report of the analysis.
You must notify and obtain approval for your selected companies from your lecturer within ONE WEEK of the issue of this assignment.
The report should cover the following points:
• A brief profile of the companies chosen for the study.
• A discussion on trend and common size statements comparing and contrasting the financial performance of the chosen companies.
• Critical analysis of the statement of cash flows of the chosen companies.
• Critical analysis of the overall financial performance of the company using additional techniques such as, Z score analysis, Off balance sheet analysis and SWOT analysis.
Note: All your calculations to support your arguments should be shown in a separate excel file.
GUIDELINES
Your report should include
1. A brief introduction to the chosen companies, period of study, sector, objectives of preparing the report.
2. Trend analysis - you should compare and contrast the performance of both the companies covering various aspects like profitability, revenue, operating expenses, assets and liabilities, current assets and current liabilities etc. This could include few (say 3 or 4) graphical presentations. Your discussions could be based on the average values calculated in excel.
3. Cash flow analysis - The discussions on cash flow analysis should include the comparing and contrasting of operating, investing and financing cash flows of both companies and link it to the income statement or statement of financial position. For example cash flow from investing activities could be linked to non-current assets in the statement of financial position. This could be supported by one graphical presentation.
4. Z score analysis - The discussions on Z score analysis should focus on the probable bankruptcy of the both companies and link it with its liquidity, working capital, revenue etc.
5. Brief discussions on SWOT analysis.
6. Relevant conclusions (Do not forget to link your conclusions to your objectives!)
7. References should be in Harvard style.
8. A separate link will be created to upload your excel calculations which should include calculations on the following:
- Income statement of both the companies
- Statement of financial positions of both companies
- Cash flow statements
- Z score
- Graphs and charts.
Attachment:- Final Report Template.rar