Assignment Task

Introduction

For this assessment, you will conduct a financial analysis of a publicly listed company of your choice. Please ensure the selected company meets the following criteria:

1. It must be listed on a stock exchange.
2. It should NOT be a financial or banking company due to the unique nature of financial statements in this sector.
3. The annual report used should be from the year 2020.
4. Although students may choose the same company, each report must be submitted individually, not as a group.
5. The annual report must be available in English.

Task 1: Finding Financial Information

Locate the necessary financial data from the chosen company`s annual report and identify a close competitor. Calculate the following ratios for the fiscal years 2019 and 2020:

1. Return on capital employed
2. Return on sales
3. Asset utilization ratio
4. Gross profit margin
5. Current ratio and quick ratio
6. Gearing
7. Interest cover
8. Stock days
9. Current trade receivables days
10. Current trade payables days
11. Return on equity
12. Common Size Analysis
13. Du-Pont analysis

Task 2: Financial Analysis

Utilize the ratios calculated in Task 1 along with additional information from the annual reports to conduct a comprehensive financial analysis of the chosen company and its competitor.

• Describe the main company`s performance and compare it to the competitor`s performance.
• Explain potential reasons for performance differences and discuss implications for the chosen company.
• Analyze whether the chosen company should be concerned about its competitor based on financial performance.

Ensure your analysis is concise and within the specified word limit, excluding the bibliography. If using information not directly from the financial statements (e.g., from notes or external sources), cite the exact location and source.

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