• Boral Limited (ASX code: BLD)
• FFI Holdings Limited (ASX code: FFI)

Question 1 (10%)

Analyse the overall liquidity position for each of the two companies in 2020 as compared to 2019. Calculate the values for two liquidity ratios to help support your answer and justify why you have chosen these ratios

Note: Ensure that you analyse in this questiondon't just describe the ratio values.

Question 2 (10%)

Analyse the sources of finance for each of the two companies in 2020 as compared to 2019. Use two capital structure ratios to support your answer and provide an explanation regarding the changes in the composition of the sources of finance for each enterprise.

Note: Ensure that you analyse in this questiondon't just describe the ratio values.

Question 3 (15%)

For each of the two companies, analyse their ability to successfully manage each of their categories of expenses in 2020 as compared to 2019. Use three profit margin ratios to support your answer and explain any change in the ability of each company to control costs.

Note: Ensure that you analyse in this questiondon't just describe the ratio values.

Question 4 (15%)

Analyse the profitability of invested capital (assets) for each of the two companies in 2020 as compared to 2019. Based on your calculations, explain the main reason(s) for the change in the profitability for each company over the two years.

Note: Ensure that you analyse in this questiondon't just describe the ratio values.

Question 5 (20%)

Given your answers and analysis in Questions 1 to 4, what is your final recommendation to the CIO of Eminence Investment Fund, with regards to the potential of investing in any of the two firms? Discuss the basis for your recommendation. Ensure you base your recommendation only on the change in the ratios for the two stated financial years (i.e., 2019 and 2020).