Question
Scenario You are the financial analyst of an investment company. The managing director of your company is considering to diversify its investment into a healthcare
Scenario You are the financial analyst of an investment company. The managing director of your company is considering to diversify its investment into a healthcare company as the healthcare industry has benefited greatly from the Covid-19 pandemic. You are assigned with the role to analyse and propose a good healthcare company to be invested from Bursa Malaysia. After conducting a preliminary selection, you found that Top Glove Corporation Berhad has the potential for generating a good return of investment in the near future. With that, you decided to conduct an in-depth analysis on the company.
By using the annual report of the company, discuss the below mentioned questions. You are required to produce your answers by referring to the relevant sections in the annual report.
1. Name and background of company.
2. Using the annual report, provide and comment on the following: The performance of the company as compared to previous year. You need to analyse the items under the consolidated statement of profit or loss for both years 2019 and 2020 in order to provide a detailed analysis on this part.
3. Calculate the profitability, liquidity and efficiency ratios of the company (use the following ratios: gross profit margin, net profit margin, return on capital employed, quick ratio, current ratio, accounts receivable turnover, accounts payables turnover, inventory turnover) for year 2019 and 2020.
4. Critically evaluate the ratios calculated above, and comment on your analysis.
5. Provide recommendations to your managing director on whether the company should invest in Top Glove Corporation Berhad based on fundamental analysis (ratios analysis)
Required length 1,000 words [excluding appendices etc & highlighting the information/figures cited.
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