You are in the last semester of your studies. After graduation, you are determined to join one of the best companies in Malaysia. Now you have decided to do financial analysis before you start sending your job applications.

Requirement:

Choose one industry, then select two companies of your choice. You are required to do financial statement analysis, which focuses on specific aspects of financial performance and financial position of both (selected) companies. Your analysis should contain the following:

(a) Prepare the following ratio calculations (choose 8 ratios) based on the 2019 financial statements.

1. Gross profit, 2. Net profit margin, 3. Return on Equity, 4. The current ratio, 5. Trade receivables collection period, 6. Trade payables payment period, 7. Debt to assets ratio, 8. Interest coverage, 9. Return on Assets.

(b) Analyze, interpret, and compare the financial statements of both companies.

Please use the following format to present your calculations (You are required to state the formula used clearly):

	Ratio	Company 1	Company 2
1.	Net profit margin: Net profit/ Revenue x 100	2,000/50,000 x 100 = x%	5,000/15,000 x 100 = y%