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.

Ta 9/29/21, 8:07 PM NEWT 27.55 0.29 1.06% : Newtek Business Services Corp. - Yahoo Finance SA Balance Sheet All numbers in thousands Newtek Get access to 40+ years of historical data with Yahoo Finance Plus Essential. Learn more Breakdown 12/31/2020 12/31/2019 12/31/2018 12/31/2017 > Total Assets 840,979 797,411 653,341 519,611 > Total Liabilities Net Minority I... 501,626 475,185 365,896 241,282 > Total Equity Gross Minority I... 339,353 322.226 287,445 278,329 Total Capitalization 791,135 754,154 619,075 494,581 Common Stock Equity 339,353 322,226 287,445 278,329 9,897 Capital Lease Obligations Net Tangible Assets 339.353 322,226 287.445 278,329 72,515 62,318 21,520 Working Capital 791,135 754,154 619,075 Invested Capital 494,581 339,353 322,226 287,445 278,329 Tangible Book Value 441,825 460,479 331,630 216,252 Total Debt 449,709 213,788 430,166 329,314 Net Debt 20,530 18,919 21,970 18,457 Share Issued 21,970 18,457 20,530 18,919 Ordinary Shares Number 8:06 PM NEWT 27.550.29 1.06%: Newtek Business Services Corp. - Yahoo Finance Income Statement All numbers in thousands NewTek Get access to 40+ years of historical data with Yahoo Finance Plus Essential. Learn more Breakdown TTM 12/31/2020 > Total Revenue 12/31/2019 12/31/2018 113,722 74,959 88,791 77,743 > Special Income Charges -293 -1,008 Pretax Income 64,121 32,620 44,299 36,755 Tax Provision 1.218 -999 3,164 1.077 > Net Income Common Stockh... 62,903 33,619 41,135 35,678 Diluted NI Available to Com Sto... 62,903 33,619 41,135 35,678 Basic EPS 1.59 2.13 1.91 Diluted EPS 1.59 2.13 1.91 Basic Average Shares 21,146 19,326 18,714 Diluted Average Shares 21,146 19,326 18,714 Net Income from Continuing & ... 62,903 33,619 41,135 35,678 Normalized Income 62,903 33,619 41,135 35,678 EBIT - 64,721 52,821 Reconciled Depreciation 348 402 501 484 62,903 33,619 41,135 35,678 Net Income from Continuing Op... Total Unusual Items Excluding ... 50,401 43,175 Total Unusual Items 50,401 43,175 Normalized EBITDA 14,821 10,130 0 0 0 Tax Rate for Calcs 0 0 0 Tax Effect of Unusual Items 0 0 . 9/29/21, 8.02 PM - - - Vahn Finance BNS 61.78 -0.29-0.47% The Bank of Nova Scotia - Yahoo Finance Income Statement Currency in CAD. Al numbers in thousands BNS Get access to 40+ years of historical data with Yahoo Finance Plus Essential. Leam more Breakdown TTM 10/31/2020 10/31/2019 10/31/2018 > Total Revenue 30,932,000 31,094,000 30,384,000 28,216,000 -4,727,000 Credit Losses Provision > Non Interest Expense > -6,084,000 -3,027.000 -2,611,000 16,115,000 16,573,000 16,292.000 14,467,000 Income from Associates & Othe... 261,000 242,000 650,000 559.000 > Special Income Charges -201,000 -283,000 -445,000 -591,000 Pretax income 10,150,000 8,396,000 11 270,000 11,106,000 Tax Provision 2,093,000 1,543,000 2,472,000 2,382.000 > Net Income Common Stockh... 7,631,000 6,582,000 8,208,000 8,361,000 93,000 6,000 16,000 142.000 Average Dilution Earnings Diluted NI Available to Com Sto... 7,724,000 6,588.000 8,350,000 8,377,000 5.43 6.72 6.90 Basic EPS 5.30 6.68 6.82 Diluted EPS 1,212.000 1.222.000 1.213,000 Basic Average Shares 1.243,000 1.251,000 1,229.000 Diluted Average Shares 12,311,000 11,236,000 14,150,000 13,580,000 INTEREST INCOME AFTER_... 7,856,000 6,778,000 8,390,000 8,548,000 Net Income from Continuing & ... 8,017,303 7,008,928 8,737,545 9,011,935 Normalized Income 365.000 700.000 1,430,000 1,305,000 Total Money Market Investments 1,539,000 1,546,000 1,053,000 848,000 Reconciled Depreciation 7,856,000 6,778,000 8,390,000 8,548,000 Net Income from Continuing Op... -201,000 -591,000 -445,000 -283,000 Total Unusual Items Excluding ... -283,000 -591,000 -201,000 -445,000 Total Unusual Items 0 0 0 0 Tax Rate for Calcs -52,072 -39,697 -97.455 Tax Effect of Unusual Items 9/29/21, 8:04 PM BNS 61.78 -0.29 -0.47%: The Bank of Nova Scotia - Yahoo Finance Balance Sheet Currency in CAD. All numbers in thousands BNS Get access to 40+ years of historical data with Yahoo Finance Plus Essential. Learn more Breakdown 10/31/2020 10/31/2019 10/31/2018 10/31/2017 > Total Assets 1,136,466,000 1,086,161,000 998,493,000 915,273,000 > Total Liabilities Net Minority I... 1,065,963,000 1,015,969,000 930,813,000 853,648,000 70,503,000 > Total Equity Gross Minority ... Total Capitalization 70,192,000 67,680,000 61,625,000 226,078,000 207,760,000 208,490,000 183,504,000 Preferred Stock Equity 5,308,000 3,884,000 4,184,000 4,579,000 Common Stock Equity 62,819,000 63,638,000 61,044,000 55,454,000 Capital Lease Obligations 3,475.000 Net Tangible Assets 51,112,000 50,057,000 47,509,000 47,927,000 Invested Capital 278,069,000 317,392,000 297,668,000 272,570,000 45,804,000 46,173,000 43,325,000 43,348,000 Tangible Book Value 253,754,000 218,725,000 236,624,000 217,116,000 Total Debt 203,325,000 137,609,000 171,164,000 151,736,000 Net Debt 1,216,132 1,211,479 1,227,028 1,199,232 Share issued 1,216,132 1,211,479 1,227,028 1,199,232 Ordinary Shares Number Ta 9/29/21, 8:07 PM NEWT 27.55 0.29 1.06% : Newtek Business Services Corp. - Yahoo Finance SA Balance Sheet All numbers in thousands Newtek Get access to 40+ years of historical data with Yahoo Finance Plus Essential. Learn more Breakdown 12/31/2020 12/31/2019 12/31/2018 12/31/2017 > Total Assets 840,979 797,411 653,341 519,611 > Total Liabilities Net Minority I... 501,626 475,185 365,896 241,282 > Total Equity Gross Minority I... 339,353 322.226 287,445 278,329 Total Capitalization 791,135 754,154 619,075 494,581 Common Stock Equity 339,353 322,226 287,445 278,329 9,897 Capital Lease Obligations Net Tangible Assets 339.353 322,226 287.445 278,329 72,515 62,318 21,520 Working Capital 791,135 754,154 619,075 Invested Capital 494,581 339,353 322,226 287,445 278,329 Tangible Book Value 441,825 460,479 331,630 216,252 Total Debt 449,709 213,788 430,166 329,314 Net Debt 20,530 18,919 21,970 18,457 Share Issued 21,970 18,457 20,530 18,919 Ordinary Shares Number 8:06 PM NEWT 27.550.29 1.06%: Newtek Business Services Corp. - Yahoo Finance Income Statement All numbers in thousands NewTek Get access to 40+ years of historical data with Yahoo Finance Plus Essential. Learn more Breakdown TTM 12/31/2020 > Total Revenue 12/31/2019 12/31/2018 113,722 74,959 88,791 77,743 > Special Income Charges -293 -1,008 Pretax Income 64,121 32,620 44,299 36,755 Tax Provision 1.218 -999 3,164 1.077 > Net Income Common Stockh... 62,903 33,619 41,135 35,678 Diluted NI Available to Com Sto... 62,903 33,619 41,135 35,678 Basic EPS 1.59 2.13 1.91 Diluted EPS 1.59 2.13 1.91 Basic Average Shares 21,146 19,326 18,714 Diluted Average Shares 21,146 19,326 18,714 Net Income from Continuing & ... 62,903 33,619 41,135 35,678 Normalized Income 62,903 33,619 41,135 35,678 EBIT - 64,721 52,821 Reconciled Depreciation 348 402 501 484 62,903 33,619 41,135 35,678 Net Income from Continuing Op... Total Unusual Items Excluding ... 50,401 43,175 Total Unusual Items 50,401 43,175 Normalized EBITDA 14,821 10,130 0 0 0 Tax Rate for Calcs 0 0 0 Tax Effect of Unusual Items 0 0 . 9/29/21, 8.02 PM - - - Vahn Finance BNS 61.78 -0.29-0.47% The Bank of Nova Scotia - Yahoo Finance Income Statement Currency in CAD. Al numbers in thousands BNS Get access to 40+ years of historical data with Yahoo Finance Plus Essential. Leam more Breakdown TTM 10/31/2020 10/31/2019 10/31/2018 > Total Revenue 30,932,000 31,094,000 30,384,000 28,216,000 -4,727,000 Credit Losses Provision > Non Interest Expense > -6,084,000 -3,027.000 -2,611,000 16,115,000 16,573,000 16,292.000 14,467,000 Income from Associates & Othe... 261,000 242,000 650,000 559.000 > Special Income Charges -201,000 -283,000 -445,000 -591,000 Pretax income 10,150,000 8,396,000 11 270,000 11,106,000 Tax Provision 2,093,000 1,543,000 2,472,000 2,382.000 > Net Income Common Stockh... 7,631,000 6,582,000 8,208,000 8,361,000 93,000 6,000 16,000 142.000 Average Dilution Earnings Diluted NI Available to Com Sto... 7,724,000 6,588.000 8,350,000 8,377,000 5.43 6.72 6.90 Basic EPS 5.30 6.68 6.82 Diluted EPS 1,212.000 1.222.000 1.213,000 Basic Average Shares 1.243,000 1.251,000 1,229.000 Diluted Average Shares 12,311,000 11,236,000 14,150,000 13,580,000 INTEREST INCOME AFTER_... 7,856,000 6,778,000 8,390,000 8,548,000 Net Income from Continuing & ... 8,017,303 7,008,928 8,737,545 9,011,935 Normalized Income 365.000 700.000 1,430,000 1,305,000 Total Money Market Investments 1,539,000 1,546,000 1,053,000 848,000 Reconciled Depreciation 7,856,000 6,778,000 8,390,000 8,548,000 Net Income from Continuing Op... -201,000 -591,000 -445,000 -283,000 Total Unusual Items Excluding ... -283,000 -591,000 -201,000 -445,000 Total Unusual Items 0 0 0 0 Tax Rate for Calcs -52,072 -39,697 -97.455 Tax Effect of Unusual Items 9/29/21, 8:04 PM BNS 61.78 -0.29 -0.47%: The Bank of Nova Scotia - Yahoo Finance Balance Sheet Currency in CAD. All numbers in thousands BNS Get access to 40+ years of historical data with Yahoo Finance Plus Essential. Learn more Breakdown 10/31/2020 10/31/2019 10/31/2018 10/31/2017 > Total Assets 1,136,466,000 1,086,161,000 998,493,000 915,273,000 > Total Liabilities Net Minority I... 1,065,963,000 1,015,969,000 930,813,000 853,648,000 70,503,000 > Total Equity Gross Minority ... Total Capitalization 70,192,000 67,680,000 61,625,000 226,078,000 207,760,000 208,490,000 183,504,000 Preferred Stock Equity 5,308,000 3,884,000 4,184,000 4,579,000 Common Stock Equity 62,819,000 63,638,000 61,044,000 55,454,000 Capital Lease Obligations 3,475.000 Net Tangible Assets 51,112,000 50,057,000 47,509,000 47,927,000 Invested Capital 278,069,000 317,392,000 297,668,000 272,570,000 45,804,000 46,173,000 43,325,000 43,348,000 Tangible Book Value 253,754,000 218,725,000 236,624,000 217,116,000 Total Debt 203,325,000 137,609,000 171,164,000 151,736,000 Net Debt 1,216,132 1,211,479 1,227,028 1,199,232 Share issued 1,216,132 1,211,479 1,227,028 1,199,232 Ordinary Shares Number