Assignment Questions

i. Using financial statement ratio analysis to determine the following for each of the two companies you selected for the latest of the two years you have to financial statements for (you can use multiple ratios for each element): (If you have access to the company's information, you may want to use their summary of the profits and loss account, the balance sheet, and the cash flow statement and report the figures over the last five years) e.g for companies ( Tongaat-Hulett and Nestle), Download their annual reports for the year, preferably 2019 or 2020, and answer the questions below.

Profitability

Efficiency

Liquidity

Investment

Financial gearing

ii. Analyse and discuss the differences observed between the two companies, based on your results from (i),

iii. Perform a direct analysis by looking at aspects like turnover, gross profit, net profit etc., between the selected companies.

iv. Evaluate the two companies and discuss the differences between the results obtained in (ii) and (iii).

v. Identify and explain difficulties when analysing two different companies in terms of the two methods used for your analysis ii and iii above).

vi. Analyse the companies' financial reports and describe any positive, uplifting stories about activities and accomplishments done in the past year in their financial reporting.

vii. Which of these two companies would you rather work for? Explain your answer.