You are required to choose two multinational companies from the same Industry based out in two different
Question:
You are required to choose two multinational companies from the same Industry based out in two different countries and access their most recent annual reports. Choose companies that place copies of their annual reports on their website. The annual reports are normally located within the "Investor" or "Investor Relations" section of their website. Do not choose companies from the banking or services industry.
You are required to review the annual reports of these companies and answer each of the following questions:
1. For both companies, state the names, websites and locations of their headquarters, nature of business and products, and historical background.
2. In which geographical areas does each company market its products and services?
3. Outline the content of information provided in each annual report. Do the annual reports provide forward looking information and to what extent do you think such forward looking information is important for investors’ decision making?
4. See the financial statement of both the companies and calculate major Profitability, Liquidity, long term solvency and turnover ratios. Compare the ratios of the two companies and analyze the performance. Which company is performing better?
5. Check whether any of these companies did any capital Investment in the recent past. If yes, please give the detail of the Investment made.
6. See the balance sheet of these companies and find out the capital structure of the company. If they have debt, find out the Debt Equity Ratio.
7. Do these companies provide any information about their share prices and dividends? If yes, please elaborate and find the below details:
a) Calculate the ratio of price per share/book value of equity per share at year-end.
b) Calculate the ratio of price per share/earnings per share at year-end.
c) What is the total market value of each company at year-end?
e) What is the number of their outstanding shares?
Financial Reporting and Analysis
ISBN: 978-0078025679
6th edition
Authors: Flawrence Revsine, Daniel Collins, Bruce, Mittelstaedt, Leon