Question
You are required to split into groups of three (3) to five (5) for this mid-semester project. The details of the project are specified as
You are required to split into groups of three (3) to five (5) for this mid-semester project. The details of the project are specified as follows: Instructions 1. Each group is required to select one company listed on the Ghana Stock Exchange. (Liaise with each group to make sure that each group selects a separate company. No duplicates will be accepted). 2. After selecting the company, you are required to download or acquire their financial statements for the accounting periods of 2019 and 2020. 3. Use the financial statements obtained to calculate financial ratios for both years for the company. Use the following classification of ratios for the calculations: i. Liquidity ii. Profitability iii. Coverage iv. Efficiency, and v. Gearing 4. Interpret the individual ratios and conduct a comparative analysis of the ratios over the two year period. 5. Using the ratios calculated, determine the following with reasonable justification: a) Is the company in a position to go in for more debt? b) How effective is the company in managing its working capital? c) Analyse the companys liquidity position and draw conclusions on whether it is illiquid, liquid or too liquid. d) How would you describe the companys ability to control its costs?
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