Analyse and interpret financial statements and understand the relationship between the different statements. It is an...

  

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Analyse and interpret financial statements and understand the relationship between the different statements. It is an individual Project, Select a company listed on the New York Stock Exchange to use as the basis of your analytical report and refer to the company website for the latest Financial Statements (2019 and 2020) such as Income Statement and Balance Sheet and Calculate 1. Profitability ratios, 5 ratios 2. Efficiency ratios, 6 ratios 3. Liquidity ratios, 2 ratios 4. Financial gearing ratios, 3 ratios 5. Investment ratios and write, 4 ratios The analytical report consists of a full financial analysis and assessment ofa company listed on the New York Stock Exchange, word limit of 500 words Develop a written report that contains: • An Executive summary • Contents page. • Introduction • Discussion and critical analysis • Conclusion • An appendix of the two core financial statements for the years that are analysed • References RATIO FORMULAE Profitability Ratios ROE = Profit available for distribution 100 Average Equity EBIT 100 Average Total Assets ROA = Gross Profit • 100 Sales or Revenue GP Margin Profit Margin - EBIT 100 Sales or Revenue Expense ratio = Expense 100 Sales or Revenue Efficiency Ratios Asset turnover Sales (Revenue) * 100 Average total assets Inventory (av.days) = Average Inventory 365 Cost of Goods Sold Cost of Goods Sold Average Inventory Inventory (turns) Debtors (av.days) - Average Debtors 365 Sales or Revenue Sales or Revenue Average Debtors Debtors (turns) Creditors (av.days) - Average Creditors 365 Cost of Goods Sold Creditors (turns) = Cost of Goods Sold Average Creditors Liquidity ratios Current Assets Current Liabilities Current ratio Current Assets less Inventory Current Liabilities Quick ratio Financial Gearing Ratios - Total Liabilities • 100 Total Equity Debt to equity ratio Debt ratio: = Total Liabilities 100 Total Assets Equity ratio: = Total Equity • 100 Total Assets Investment Ratios Earnings per share Net profit Number of Ordinary shares Market price per share Earning per share Price earning ratio Dividend yield ratio Dividend per share Market price per share Dividend pay out ratio Dividend per share Earnings per share Analyse and interpret financial statements and understand the relationship between the different statements. It is an individual Project, Select a company listed on the New York Stock Exchange to use as the basis of your analytical report and refer to the company website for the latest Financial Statements (2019 and 2020) such as Income Statement and Balance Sheet and Calculate 1. Profitability ratios, 5 ratios 2. Efficiency ratios, 6 ratios 3. Liquidity ratios, 2 ratios 4. Financial gearing ratios, 3 ratios 5. Investment ratios and write, 4 ratios The analytical report consists of a full financial analysis and assessment ofa company listed on the New York Stock Exchange, word limit of 500 words Develop a written report that contains: • An Executive summary • Contents page. • Introduction • Discussion and critical analysis • Conclusion • An appendix of the two core financial statements for the years that are analysed • References RATIO FORMULAE Profitability Ratios ROE = Profit available for distribution 100 Average Equity EBIT 100 Average Total Assets ROA = Gross Profit • 100 Sales or Revenue GP Margin Profit Margin - EBIT 100 Sales or Revenue Expense ratio = Expense 100 Sales or Revenue Efficiency Ratios Asset turnover Sales (Revenue) * 100 Average total assets Inventory (av.days) = Average Inventory 365 Cost of Goods Sold Cost of Goods Sold Average Inventory Inventory (turns) Debtors (av.days) - Average Debtors 365 Sales or Revenue Sales or Revenue Average Debtors Debtors (turns) Creditors (av.days) - Average Creditors 365 Cost of Goods Sold Creditors (turns) = Cost of Goods Sold Average Creditors Liquidity ratios Current Assets Current Liabilities Current ratio Current Assets less Inventory Current Liabilities Quick ratio Financial Gearing Ratios - Total Liabilities • 100 Total Equity Debt to equity ratio Debt ratio: = Total Liabilities 100 Total Assets Equity ratio: = Total Equity • 100 Total Assets Investment Ratios Earnings per share Net profit Number of Ordinary shares Market price per share Earning per share Price earning ratio Dividend yield ratio Dividend per share Market price per share Dividend pay out ratio Dividend per share Earnings per share