1. Using 2019 and 2020 common size balance sheets and income statements for Bank of Nova Scotia and Newtek Business Services, describe how each company is similar to or different from the benchmark.
2. Do the time trend analysis and describe how each company changes over time.
3. Using the balance sheet and income statement for each company, compute the following financial ratios for each company: 1) current ratio, 2) quick ratio, 3) debt-to-equity ratio, 4) times interest earned ratio (Interest coverage ratio) 5) inventory turnover, 6) receivable turnover, 7) total asset turnover, 8) profit margin, 9) return on asset (ROA), 10) Return on equity (ROE), 11) price-earnings ratio, 12) market-to-book ratio.

4. (Financial Ratio Analysis) Select the benchmark for peer group analysis. Youll use two kinds of benchmarks in this assignment. Your companys ratios and the other is industry averages from finance.yahoo.com or www.reuters.com or investing.money.msn.com). cite the source.

5. Describe how good or bad ratios of your companies are considered. Describe the similarities.

6. (DuPont Identity) Using the Dupont Identity equation, compare the two companies. Find out what makes differences in ROEs between the two companies.

7. Using the DuPont Identity, compare the companies' 2019 ROE and 2020 ROE. Find out what makes differences in ROE between the two periods if there is any difference.

Please show in Excel and with formulas.

Bank of Nova Scotia

Financial Highlights

Fiscal YearOct 31, 2020

Most Recent QuarterJuly 31, 2021

Income Statement

Revenue (ttm) 28.288

Revenue Per Share 23.32

Quartely Revenue Growth (yoy) 32.80%

Gross Profit (ttm) 25.25B

EBITDA NA

Net Income Avi to Common (ttm) 8.73B

Diluted EPS (ttm) 5.65

Quartely Earnings Growth (yoy) 81.60%

Balance Sheet

Total Cash (mrg) 382.54B

Total Cash Per Share(mrq) 314.81

Total Debt (mrq) 179.79B

Total Debt/Equity (mrq) N/A

Current Ratio (mrq) N/A

Book Value Per Share (mrq) 56.97

Cash Flow Statement

Operating Cash Flow (ttm) -65.25B

Levered Free Cash Flow (ttm) N/A

Newtek Business Services Corp.

Financial Highlights

Fiscal Year Ends Dec. 31, 2020

Most Recent Quarter (mrq) June 30, 2021

Profitability

Profit Margin -- 62.29%

Operating Margin (ttm) 51.83%

Management Effectiveness

Return on Assets (ttm) 3.82%

Return on Equity (ttm) 18.06%

Income Statement

Revenue (ttm) --100.99M

Revenue Per Share (ttm) 4.60

Quarterly Revenue Growth (yoy) -21.60%

Gross Profit (ttm) 92.2M

EBITDA 52.69M

Net Income Avi to Common (ttm) 62.9M

Diluted EPS (ttm) 2.87

Quarterly Earnings Growth (yoy) -31.80%

Balance Sheet

Total Cash (mrq) 18.8M

Total Cash Per Share (mrq) 0.83

Total Debt (mrq) 457.38M

Total Debt/Equity (mrq) 123.95

Current Ratio (mrq) 12.72

Book Value Per Share (mrq) 16.38

Cash Flow Statement

Operating Cash Flow (ttm) 69.24

Levered Free Cash Flow (ttm) -122.43M