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REQUIREMENTS: You are tasked with performing a detailed financial analysis of two Jamaican companies: Hency Bun Ltd and Consolidated Bakeries Ltd. More specifically, you are

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REQUIREMENTS: You are tasked with performing a detailed financial analysis of two Jamaican companies: Hency Bun Ltd and Consolidated Bakeries Ltd. More specifically, you are to prepare a single comprehensive report which addresses the following requirements: 1. Explain the value, purpose, and limitations of ratio analysis. 2. Explain the significance of trend analysis. 3. Explain the significance of competitor ratio analysis. 4. Identify the industry within which both Honey Bun and Consolidated Bakeries operate, and provide a brief overview of this industry. 5. Provide separate company overviews for Honey Bun AND for Consolidated Bakeries. Use information from the chairman's and/or management reports, news reports, websites, analysts' reviews, and other relevant sources to support your discussion. Also, outline the key successes and challenges faced by both companies in their most recent financial year (i.e. year ending 2021). Indicate any major operational or financial issues which arose during the year, why they arose, and how they were resolved. 6. Using the full list of ratios and formulas as outlined on the ratio analysis worksheet provided on Moodle, calculate each of the stated ratios for BOTH companies for the past three (3) financial years (i.e., the years ending 2019, 2020, and 2021). 7. You are then to prepare a detailed trend analysis discussion for BOTH companies over the same period. Your analyses should reference the results of the ratios calculated and must incorporate the use of graphs/charts. Your discussion should go beyond simply stating the trend observed, as majority of the marks will come from your ability to explain or justify the trends observed and discuss their implications for the business. You should utilise information from the notes to the financial statements, other sections of the annual reports, or from other relevant sources to support your analyses. This is especially crueial where you observe significant movements in any of the trends (whether positive or negative). The discussion of the trend for each ratio should be done in one to two welldeveloped paragraphs, and each company should be discussed separately. 8. You are also to prepare a summary comparing and contrasting the general liquidity, solvency, profitability, asset management, and investment performance of BOTH companies. The comparative discussion for each ratio category should span one to two welldeveloped paragraphs. In addition to the instructions above, please note the following: - You are to use the Jamaica Stock Exchange website or the respective company websites to retrieve the annual reports for the companies for 2020 and 2021 , as these reports contain the financial statements and other background information which will form the basis of your analysis. You will also be expected to pull on other research sources to support your analysis and to meet the requirements of the task. - Your report is expected to include headings and sub-headings as appropriate. - Your report should include an appendix which shows the workings for all ratio calculations completed (the workings should NOT be shown in the body of the report). - Information retrieved from research sources should NOT be copied and pasted verbatim, but should instead, should be significantly paraphrased and reworded to express your own interpretation and analysis. Copying and pasting and other forms of plagiarism will be heavily penalised where observed. - In-text citation according to the APA format is to be used to reference quotations and other material retrieved from research sources. - A full reference list is to be provided with all research sources used, and this reference list is to be compiled in accordance with the APA format. - The body of the report (not including the cover page, project management report, references and appendices) is expected to span a minimum of six pages. - The grading of the project is done based on the following allocations: Computation of ratios - 15% Written content and ratio analysis - 75% Organisation and presentation 10% Take note the significant weighting placed on the analysis and discussion portion of the project, and be guided accordingly

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