Project

Corporate / Strategic Financial Management

Select two companies from a sector and then analyze the

financial statements of the recent years as follows:

 Financial analysis includes ratio analysis, horizontal, vertical,

industry and trend analysis.

 You MUST provide all the supporting calculations, working

and interpretation of results obtained from each ratio.

 You are required to calculate minimum 30 ratios.

 You will be required to explain that what are the

reasons/factors for decreasing or increasing trend of all the
ratios that you have calculated i.e. you have to explain that
why a particular ratio has been increased or decreased over
the three years. Similarly, you have to interpret horizontal,
vertical, trend and industry analysis as well.

 You are required to do complete financial analysis of recent

three years. Analysis done other than recent years will not
be considered.

 After complete analysis, you as a financial analysis will have

to compare both these companies and on the basis of
financial analysis you have to give comments/opinion to all
the stakeholders about which company is good.
Stakeholders include management of the companies,
 shareholders, customers, investors and all related person
that can affect and that can be affected by your selected
companies business. You should give comments to each
member/party of stakeholders separately i.e. you should
give comments firstly to management of the companies then
to the shareholders and so on to the rest of parties.

• Management of the companies

• Shareholders

• Customers

• Investors

• All related person

 You will be required to give suggestions to both the

companies in the project. Your recommendations must be
based on logical facts that you will know after doing financial
statement analysis rather than raw data.