BAO1101 Assessment 2 : Decision Making In The Share market
PART 3 – IDENTIFICATION OF KEY FINANCIAL DATA AND RATIO ANALYSIS [35 marks]
[B] RATIO ANALYSIS
From the Key Financial Data, calculate relevant ratios provide an overview of each company’s: -
*Profitability *Stability *Liquidity
At least 6 ratios for each company should be used for this overview. The ratios may vary depending on the availability of information provided in each company’s Financial Statements.
For each of the headings listed above, your overview should: Identify the name of the ratio used and interpret your results. Provide an explanation of why these ratios may differ between your companies. Which do you consider to be the better investment? Explain your reasoning.
Refer to your Subject Resource Workbook for formulae and interpretation.
Please note that Topic 4 - Ratio Analysis and Interpretation will be covered in Weeks 8 and 9.
All formulae and calculations must be clearly shown. [250 words maximum for each company] [30 marks]