Question: Pls Help, no handwritting all typing. Financial Statement Analysis and Valuation This is the full question, please answer, part (a) to (d) as stated clearly
Pls Help, no handwritting all typing.
Financial Statement Analysis and Valuation
This is the full question, please answer, part (a) to (d) as stated clearly above.
Detailed below is the key financial data relating to XYZ Company Ltd ("XYZ" or "the Company) for the respective years. XYZ's principal activities involves the development, manufacturing, and sale of technological products for the consumer market. * EBIIDA is earnings vetore interest, tax, aepreciation, and amortisation. (a) Analyse the trend in XYZ's profitability with supporting reasons, based on the information provided. (12 marks) (b) Explain the term "inventory turnover" ratio and its importance to the company's operations, based on the information provided. ( 8 marks) (c) As the world starts to live with the Covid-19 pandemic, in 2022, XYZ had achieved a return on equity of 10 percent, whereas a competitor's return on equity was only 5 percent. Use the Dupont decomposition analysis to provide possible reasons for this difference. (10 marks) (d) In a recent board meeting, a director of XYZ made a comment: "I am of the view that the Company should just focus on the operating cash flow. If cash flows are less than earnings, I consider the company to be a poor performer and a poor investment prospect." Do you agree with this comment? Explain your answer. (6 marks)
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
