Assignment #1

I chose these two companies: Bank of Nova Scotia and Newtek Business Services Corp for the questions listed below: .

1) With 2019 & 2020 balance sheet & Income statement for each company, create common-size balance sheets and common-size income statements.

2) Using 2020 common-size balance sheet and income statement, compare your company with the benchmark, and describe how your company is similar to or different from the benchmark. 3) Using 2019 & 2020 common-size balance sheet and income statement of each company, do the time trend analysis and describe how each company changes over time. II. (Financial Ratio Analysis) Using 2019 & 2020 Balance sheet & Income statement for each company, compute the following financial ratios for each company: 1) Current ratio 2) Quick ratio 3) Debt-to-equity ratio 4) Times interest earned ratio (Interest coverage ratio) 5) Inventory Turnover 6) Receivable turnover 7) Total asset turnover 8) Profit margin 9) Return on Asset (ROA) 10) Return on Equity (ROE) 11) Price-earnings ratio 12) Market-to-book ratio

III. (Financial Ratio Analysis) Select the benchmark for peer group analysis. You'll use two kinds of benchmarks in this assignment. One is your competitor's ratios and the other is industry averages (you can find industry averages from finance.yahoo.com or www.reuters.com or investing.money.msn.com). Make sure that you cite the source of industry averages. 1) Using the 2020 ratios from Question 2, compare your company's ratios to both competitor's and industry averages. Then describe how good or bad ratios of your company are considered. 2) Using 2019 & 2020 ratios for your company, compare your company's 2019 ratios with 2020 ratios and describe the similarities and differences.

1) Using the DuPont Identity equation, compare your companys 2020 ROE with competitors 2020 ROE. Find out what makes differences in ROEs between your company and competitor. 2) Using the DuPont Identity equation, compare your companys 2019 ROE with 2020 ROE. Find out what makes differences in ROE between two periods if there is any difference. Please submit your assignment as an Excel format

Bank of Nova Scotia

Financial Highlights

Fiscal YearOct 31, 2020

Most Recent QuarterJuly 31, 2021

Income Statement

Revenue (ttm) 28.288

Revenue Per Share 23.32

Quartely Revenue Growth (yoy) 32.80%

Gross Profit (ttm) 25.25B

EBITDA NA

Net Income Avi to Common (ttm) 8.73B

Diluted EPS (ttm) 5.65

Quartely Earnings Growth (yoy) 81.60%

Balance Sheet

Total Cash (mrg) 382.54B

Total Cash Per Share(mrq) 314.81

Total Debt (mrq) 179.79B

Total Debt/Equity (mrq) N/A

Current Ratio (mrq) N/A

Book Value Per Share (mrq) 56.97

Cash Flow Statement

Operating Cash Flow (ttm) -65.25B

Levered Free Cash Flow (ttm) N/A

Newtek Business Services Corp.

Financial Highlights

Fiscal Year Ends Dec. 31, 2020

Most Recent Quarter (mrq) June 30, 2021

Profitability

Profit Margin -- 62.29%

Operating Margin (ttm) 51.83%

Management Effectiveness

Return on Assets (ttm) 3.82%

Return on Equity (ttm) 18.06%

Income Statement

Revenue (ttm) --100.99M

Revenue Per Share (ttm) 4.60

Quarterly Revenue Growth (yoy) -21.60%

Gross Profit (ttm) 92.2M

EBITDA 52.69M

Net Income Avi to Common (ttm) 62.9M

Diluted EPS (ttm) 2.87

Quarterly Earnings Growth (yoy) -31.80%

Balance Sheet

Total Cash (mrq) 18.8M

Total Cash Per Share (mrq) 0.83

Total Debt (mrq) 457.38M

Total Debt/Equity (mrq) 123.95

Current Ratio (mrq) 12.72

Book Value Per Share (mrq) 16.38

Cash Flow Statement

Operating Cash Flow (ttm) 69.24

Levered Free Cash Flow (ttm) -122.43M