College Essays-calculate key financial ratios for an ASX listed company and its competitor and interpret this information in the context of your allocated competitor company over time.
You are required to calculate key financial ratios for an ASX listed company and its competitor and interpret this information in the context of your allocated competitor company over time.
You will be allocated two ASX listed companies to study for this assessment. You must do your allocated companies in the order they are allocated to you. You canlook up your allocated companies under ‘You/Competitor’ in MyGrades in week 1.
Imagine you work for the FIRST of these companies. The second is one of your company’s competitor.
The key ratios you need to calculate for your company and your competitor are net profit margin, asset turnover, current ratio, quick ratio and debt ratio. Your boss also wants you to calculate the cash cycles.All workings for ratios and the cash cycles are required.
You focus your analysis on the companies’ 2015, 2016 and 2017 ratios mentioned above firstly in terms of their trend changes and also in comparison to your competitors ratios.
In making your assessment consider potential differences between your company and its competitor that could explain divergentresults. Where relevant, these should be noted.(For example, although the companies may compete in some of thesame markets, they may also have different areas of business).
