Small Question

Company should be registered on Pakistan Stock Exchange

Attached Excel File With Answer

As a students of Introduction to Business Finance (IBF), you are required to evaluate the financial performance of the company using all four financial statements of the company; Income statement, Balance sheet, statement of Shareholders Equity and Statement of Cash Flows.

You are required to study the Annual Reports of the assigned Company listed on Pakistan Stock Exchange and analyses the discussed performance parameters of last five years.

The Report shall consist of following essential; but they are the bare minimum;

Vertical Analysis of Income Statement of last 5 years

Vertical Analysis of Balance Sheets of last 5 years

Horizontal Analysis of Income Statement of last 5 years

Horizontal Analysis of Balance Sheets of last 5 years

Evaluating Company Performance through following; take at least 5 years data

Liquidity ratios of last Five years; Liquidity ratios shall include Current Ratio, Quick ratio, Cash ratio and Working Capital.

Activity Ratios of Last Five years; Asset Turnover, Inventory turnover, Receivable turnover, Inventory period, receivable period, payable period

Profitability Ratios: Gross Profit Margin, Operating Profit Margin, Net Profit Margin, Return on Assets, Return on equity

Du pont Analaysis

Gearing Ratios or long term solvency ratios: Debt to Assets, Debt to Equity , Long term Debt to total Assets, Times Interest Earned

Market ratios: Price- Earning ratios, Market to Book ratios, Dividend Payout ratios, Earning per share.

You are also required to draw graph/charts/diagram of the following to show trend and comparison