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The objective of this assignment is to enhance your understanding and application of financial statement analysis concepts. You will be required to analyze the
The objective of this assignment is to enhance your understanding and application of financial statement analysis concepts. You will be required to analyze the financial statements of a publicly traded company and provide a comprehensive evaluation of its financial performance. INSTRUCTIONS: I. COMPANY SELECTION: Choose a publicly traded company of your choice. Ensure that the company has readily available financial statements (at least three years of financial data). You may use sources like the company's official website, financial news, or financial databases (e.g., Yahoo Finance, Bloomberg, kap.gov.tr, etc.). II. MACROECONOMIC AND INDUSTRY ANALYSIS Your report should include the following: 1. A brief introduction to the country's economy and key indicators that affect the companies' performance, such as changes in interest rates, inflation, political events, or other economic factors. (20 pts). 2. A brief analysis of the related industry that the company operates in. (15 pts). III. RATIO ANALYSIS: Collect the income statements and the balance sheets for the past three fiscal years. Calculate and analyze the following financial ratios for those 3 years: (30 pts) 1. Liquidity Ratios Current Ratio Acid-test Ratio Cash Ratio 2. Solvency Ratios Debt to Equity Ratio, Debt to Total Assets Ratio, Interest Coverage Ratio 3. Profitability Ratios Net Profit Margin, EBITDA Margin, Return on Equity, Return on Assets 4. Efficiency Ratios Inventory Turnover and Inventory holding period, Receivables Turnover and Average collection period, Account payable turnover ratio and Payable deferral period and, Cash Conversion Cycle. IV. INTERPRETATION Interpret the results and analyze the company's performance over the years considered. (25 pts). V. WRITTEN REPORT: Prepare a written report summarizing your findings. (10 pts). Your report should include all the information that you gather and the source where you gathered the information. Excel sheets/tables are fine to illustrate the information but should be accompanied by written work summarizing your findings for each part and conclusions. Remember to provide your results in a professional well written report. Clearly label each part of the report. 1/2
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