You are required to collect annual reports of the selected two companies for the years 2018 and 2019.

Company are

ACMELAB ( The ACME Laboratories Limited ) ACTIVEFINE ( Active Fine Chemicals Limited

x

From the annual reports you will be required to conduct the following analyses.

1. Prepare a checklist of the information (line items) presented in the Statement of Profit or Loss and Other Comprehensive Income as per paragraph 82 of IAS 1 of the studied companies. Please mention the amount in taka of each of the disclosed information along with the alphabetical numbering of the line items as per the paragraphs. You may have access to the relevant accounting standards from ICAB website at https://www.icab.org.bd/icabweb/webGeneralContent/view/121075

2. Compute the (a) Accounts receivable turnover ratio, (b) Inventory turnover ratio and (c) Asset turnover ratio for the companies for the specified periods. Make a critical analysis of the ratios and comment on the activities of the studied companies.

3. Compute the following.

(a) Profit margin on sales, (d) Earnings per share,

(b) Return on assets, (e) Price-earnings ratio,

(c) Return of Equity, (f) Payout ratio.

You have to disclose the computations even if they are reported in the respective annual reports. Make a critical analysis of these ratios in making your comment on the companies profitability.

4. Compute the following.

(a) Debt to assets, (d) Book value per share,

(b) Times interest earned, (e) Free cash flow.

(c) Cash debt coverage,

You have to disclose the computations even if they are reported in the respective annual reports. Make a critical analysis of these ratios and comment on the companies coverage.