OBJECTIVE:

The objective of this assignment is to enhance your understanding and application of financial statement analysis concepts. You will be required to analyze the financial statements of a publicly traded company and provide a comprehensive evaluation of its financial performance.

INSTRUCTIONS:

I. COMPANY SELECTION:

Choose a publicly traded company of your choice. Ensure that the company has readily available financial statements $($at least three years of financial data$).$ You may use sources like the company's official website, financial news, or financial databases $($e$.$g$.,$ Yahoo Finance, Bloomberg, kap.gov.tr$,$ etc.$).$

II$.$ MACROECONOMIC AND INDUSTRY ANALYSIS

Your report should include the following:

$1.$ A brief introduction to the country's economy and key indicators that affect the companies performance, such as changes in interest rates, inflation, political events, or other economic factors. $(20$ pts$).$

$2.$ A brief analysis of the related industry that the company operates in$.(15$ pts$).$

III. RATIO ANALYSIS:

Collect the income statements and the balance sheets for the past three fiscal years.

Calculate and analyze the following financial ratios for those $3$ years: $(30$ pts$)$

$1.$ Liquidity Ratios

Current Ratio

Acid$-$test Ratio

Cash Ratio

$2.$ Solvency Ratios

Debt to Equity Ratio,

Debt to Total Assets Ratio,

Interest Coverage Ratio

$3.$ Profitability Ratios

Net Profit Margin,

EBITDA Margin, Return on Equity,

Return on Assets

$4.$ Efficiency Ratios

Inventory Turnover and Inventory holding period,

Receivables Turnover and Average collection period, Account payable turnover ratio and Payable deferral period and, Cash Conversion Cycle.

IV$.$ INTERPRETATION

Interpret the results and analyze the company's performance over the years considered. $(25$ pts$).$

V$.$ WRITTEN REPORT:

Prepare a written report summarizing your findings. $(10$ pts$).$

Your report should include all the information that you gather and the source where you gathered the information. Excel sheets$/$tables are fine to illustrate the information but should be accompanied by written work summarizing your findings for each part and conclusions.

Remember to provide your results in a professional well written report. Clearly label each part of the report.

Submission Guidelines:

The assignment should be typed, $1,5$ lines$-$spaced, and in $12-$point Times New Roman font.

Following the format your report should be approximately $10-15$ pages long, and submitted as a PDF document.

VI$.$ GRADING CRITERIA:

Report of the assignment$-$ DEADLINE April $30,2024,23$:$59,40\%$ of your total grade and it will be graded out of $100$ pts$.$ The grading breakdown is explained below.

Macro$-$economic analysis: $20\%$

Industry Analysis: $15\%$

Ratio Analysis: $30\%$

Interpretation: $25\%$

Clarity and Coherence of the Written Report: $10\%$