Question
Ratio analysis can be used for identifying some of the issues of a firm. Indeed, Ratios draw the managements attention towards issues needing attention by
Ratio analysis can be used for identifying some of the issues of a firm. Indeed, Ratios draw the management’s attention towards issues needing attention by evaluating a broad range of financial aspects of an entity, such as its liquidity, efficiency of operations, and profitability.
You are required to select a company listed in Bursa Malaysia
Download the latest FOUR (4) years' Financial Statements of the selected company. The selected company must be from the manufacturing, industrial, oil, and gas, trading, or services sectors. Do NOT select a company in the banking or financial services industry. Using ratio analysis, analyze the selected company’s current position. The outcome of your analysis should be identifying some strengths and weaknesses of the company, highlighting the issues you find, and providing some recommendations to the company’s management.
In your report include the followings.
a) Describe the selected company’s background.
b) Analyse and critically comment the company performance and trend based on the financial ratios of the selected company for the past FOUR years (Note: Please use at least THREE financial ratios for each group of ratios as mentioned below). Highlight the strengths and weaknesses of the company based on your analysis.
i) Liquidity
ii) Assets management
iii) Financial Leverage
iv) Profitability
c) Formulate relevant recommendations to the company’s management based on the results of your analysis.
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