Question
In this regard, you will be required to complete the following assignment: Select 4 listed companies registered in the IDX which are classified by Jakarta
In this regard, you will be required to complete the following assignment: Select 4 listed companies registered in the IDX which are classified by Jakarta Stock Exchange Industrial Classification (JASICA) under Secondary Sectors (Industry and Manufacturing) category covering: Basic Industry and Chemicals, Miscellaneous Industry, and Consumer Goods Industry.
For companies selected, ensure that full set of financial reports comprehensivelly covering the period of 2017, 2018, and 2019 are readily available. Establish one of the four companies you have selected to be the baseline company (i.e. to be assigned as Baseline Company "Firm BC" ) for your analysis and use the remaining 3 companies for your comparative industry analysis (i.e.to be assigned as Comparative Company : "Firm CC1", "Firm CC2", and "Firm CC3" ).
Proceed to perform the following:
a. Prepare comprehensively for all selected companies the relevant sets of financial ratios (Liquidity Ratios, Activity Ratios, Debt Ratios, Profitability Ratios and Market Ratios) covering the entire three-year period from 2017 up to 2019. Compile the average values of the ratios obtained from the three comparative firms (Firm CC1", "Firm CC2", and "Firm CC3") to derive "industry average" ratio for the use in your comparison. You have to specifically mention the full names of each of the four firms.
b. Prepare fundamental analysis of Firm BC's performance in relation to conditions reflected by the respective financial ratios (Liquidity Ratios, Activity Ratios, Debt Ratios, Profitability Ratios and Market Ratios). Compile the corresponding analysis of the ratios presented by the comparative firms. Present you analysis in a comprehensive, accurate, detailed and clear manner. Should you invest in BC's stock?
c. Apply the Dupont system of analysis for the financial information that you have gathered from "Firm BC" and present a comprehensive intepretation of the matter.
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