FINANCIAL MANAGEMENT

INSTRUCTION :

1. You are required to find and download two listed Malaysian manufacturing companies (in the same industry- e.g beverages, consumer products etc) financial statements- Balance Sheet and Income Statement for three years ( 2017 to 2019).
2. For each company, perform a horizontal analysis and vertical analysis for all the items in the Income Statement and Balance Sheet for the three years. Compare the results between the years on the trends of important items, such as the :
   1. Revenue, Gross Profits, Net Income.
   2. Current Assets, Long term Assets, Current Liabilities, Long Term Liabilities and Equity
3. Discuss on the possible reasons contributing to the trend.
4. You are also required to do ratio analysis for three year of each company on the :
   1. Liquidity Ratio- Current and Quick Asset
   2. Activity or Efficiency Ratio Inventory Turnover, Accounts Receivable Turnover. Total Asset Turnover, Days Inventory Outstanding or Days Sales outstanding and Days Sales Outstanding(Average Collection Period)
   3. Solvency/Debt/Leverage Ratio Debt to Asset Ratio, Debt to Equity Ratio, Number of Times Interest Earned Ratio and Fixed Asset to Long Term Liablities Ratio
   4. Profitability ratios Gross Profit Margin, Net Profit Margin, Return on Asset (ROA) ratio and Return on Equity(ROE) ratio.
5. Compare the results of the ratio analysis of the three years within the company and comment on the factors contributing on the differences.
6. Lastly, compare the results of the ratio analysis for year 2018 and 2019 between both companies. Comment on your analysis.

FORMAT

1. Purpose of the Analysis
2. Brief background of the chosen industry
3. Brief profile of :
   1. Company A
   2. Company B
4. Horizontal Analysis, Vertical Analysis and Trend Analysis for Three Years(2017,2018,2019) and Comments on findings
   1. Company A
   2. Company B
5. Ratio Analysis and Comments on findings
   1. Company A
   2. Company B
6. Ratio Analysis between Company A and Company B for two years (2018 and 2019) and Comments on Findings
7. Summary and Conclusion