You are tasked with performing a detailed financial analysis of two Jamaican companies: Honey Bun Ltd and

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Question:

You are tasked with performing a detailed financial analysis of two Jamaican companies: Honey Bun Ltd and Consolidated Bakeries Ltd. More specifically, you are to prepare a single

the comprehensive report addresses the following requirements:

1. Provide separate company overviews for Honey Bun AND for Consolidated Bakeries.

Use information from the chairman’s and/or management reports, news reports, websites, analysts’ reviews, and other relevant sources to support your discussion.

Also, outline the key successes and challenges faced by both companies in their most recent financial year (i.e. year ending 2021). Indicate any major operational or financial issues which arose during the year, why they arose, and how they were resolved.

2. Using the full list of ratios and formulas as outlined in the ratio analysis calculate each of the stated ratios for BOTH companies for the past three (3) financial years (i.e., the years ending 2019, 2020, and 2021).

3. You are then to prepare a detailed trend analysis discussion for BOTH companies over the same period. Your analyses should reference the results of the ratios calculated and

must incorporate the use of graphs/charts.

Your discussion should go beyond simply stating the trend observed, as the majority of the marks will come from your ability to explain or justify the trends observed and discuss their implications for the business. You should utilize information from the notes to the financial statements, other sections of the annual reports, or other relevant sources to support your analyses. This is especially crucial when you observe significant movements in any of the trends (whether positive or negative).

The discussion of the trend for each ratio should be done in one to two well-developed paragraphs, and each company should be discussed separately.

In addition to the instructions above, please note the following:

▪ You are to use the Jamaica Stock Exchange website or the respective company websites to retrieve the annual reports for the companies for 2020 and 2021, as these reports contain the financial statements and other background information which will form the basis of your analysis. You will also be expected to pull on other research sources to support your analysis and meet the requirements of the task.