comprehensive financial ratio analysis

  1. This task assesses the following learning outcomes:
    Outcome 1: Analyze in detail three main financial statements.
    Outcome 2: Complete a comprehensive financial ratio analysis from the perspective of stockholders, creditors, and other stakeholders. Outcome 3: Develop sound analytical frameworks to grasp the process of decision making with respect to financial statement analysis.


You are required to choose a public company in Consumer Goods industry (you can find it in the list companies-2022) and prepare a report and presentation on the following five tasks, using its annual report for year 2022 and any additional information that you can find publicly on Internet. Note that you should perform analysis for the last two years reported (2022 versus 2021).

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  1. Explain briefly the company mission, business activities, corporate values and anything else that you find useful for understanding the context in which the company operates.
    (10 points)
  2. Examine Income Statement. Prepare common size analysis. Evaluate the company’s trend in sales, gross profit, operating profit and net income. (20 points)
  3. Examine Balance Sheet. Prepare common size analysis. Identify what Assets the company has, distinguishing between Current and Non-Current (Tangible and Intangible), and Liabilities, distinguishing between Short-Term and Long-Term Liabilities. Describe the capital structure of the company (i.e., what part of Debt and Equity financing it uses).
    (20 points)
  4. Examine Cash Flow Statement. Specify what kind of cash inflows and outflows the company has in its operating, investing and financing activities. Explain how the cash balance was changing over the years reported.
    (20 points)
  5. Perform Ratio Analysis for your chosen company. Evaluate Company’s liquidity, profitability, leverage and efficiency. Apply techniques learnt in class and make meaningful conclusions related to the ratio results.
    (30 points)
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