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SCENARIO You are a financial analyst working for ProVest Bank. Your client, Amy, just receive an inheritance a month ago, and she is now considering

SCENARIO

  • You are a financial analyst working for ProVest Bank.
  • Your client, Amy, just receive an inheritance a month ago, and she is now considering to invest in one of the two companies she found promising. She has exactly $10,000 to invest in shares, no more no less.

Company 2-Company 2 is a multibillion- dollar Australian retailer that sells electronics, as well as major and small appliances. The business has 315 stores in Australia and New Zealand and growing. With the current climate that encourages people to work from home and stay at home, the business is reaping benefits from selling home electronics for work and entertainment.

Share price as of 30 June 2019 was $25.85, and now it is sitting between $45.76 and $50.94.

Company 3-Company 3 is a multimillion-dollar Australian manufacturer in food industry. It is one of the significant players in the Australian plant-based beverage market. The company does export organic plant-based range to other countries, as organic food has becoming more and more in demand.

Share price as of 30 June 2019 was $4.80, and now it is sitting between $4.40 and $5.70.

I need to provide ratio analysis for theseTWO (2) companies and let her know which company is performing better.

the focus of this assessment is to deliver a financial advice commenting on the profitability, asset efficiency, liquidity and capital structure of the companies provided above.

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