Assignment 2 Is A Major Capstone Project That Brings Together Several Of The Key Concepts Studied In MGMT 6205. This Assignment Takes The Form Of A Research Paper Using Comparative Analysis Of Financial Statements And Sustainability Reporting. In Groups Of Four Or Five Students, You Are Required To Carry Out A Comparative Analysis Of One Caribbean Company
Assignment 2 is a major capstone project that brings together several of the key concepts studied in MGMT 6205.
This assignment takes the form of a research paper using comparative analysis of financial statements and sustainability reporting. In groups of four or five students, you are required to carry out a comparative analysis of one Caribbean company listed on the Jamaica Stock Exchange. For the assignment, you have been given one (1) company (The WISYNCO GROUP LIMITED COMPANY FINANCIAL STATEMENTS to conduct extensive research and analysis. Each group will conduct a financial analysis for the last 3 years 2019, 2020 and 2021 for the company. The financial statements for this company have been placed on the course page and must be used in conjunction with the accompanying Excel formula sheet to carry out the financial analysis portion of the assignment. Since this is a research project, you will need to carry out further research to complete all aspects of the assignment.
Required An analysis of the company’s financial statements for 2019, 2020 and 2021. Your analysis will also include comparisons with other firms in the same industry using the industry averages or benchmarks provided below. The presentation of your research paper should be in accordance with the following chapters or sections. Your research paper should include the following:
1. Assess the company’s level of liquidity and comment on its ability to meet its short-term financial obligations using the following ratios (Total 15 marks) (2 marks per ratio; analysis – 5 marks): a. Current Ratio b. Acid-Test or Quick Ratio c. Average collection period d. Accounts Receivable Turnover ratio e. Inventory Turnover Ratio 2. Analyze the company’s profitability and its ability to generate sufficient operating profit by using the following ratios (Total 13 marks) (2 marks per ratio; analysis – 5 marks): a. Gross Profit Margin b. Operating Profit Margin c. Operating income return on investments (ROI) d. Net Profit Margin
3. Evaluate the company’s solvency and capital structure using leverage ratios and interpret your findings using the following ratios (Total 15 marks ) (2 marks per ratio; analysis – 5 marks): a. Debt Ratio b. Equity Ratio c. Debt to Equity Ratio d. Long term debt to total capitalization e. Times Interest Earned Ratio
4. Comment on the company’s ability to utilize its assets and manage its liabilities effectively using the following efficiency ratios (Total 11 marks) (2 marks per ratio; analysis – 5 marks): a. Total Asset Turnover b. Accounts Payable Turnover c. Return on Total Assets (ROA)
5. Assess whether ordinary shareholders are receiving sufficient returns on their investments and evaluate investors’ confidence in the company’s stock using the following ratios (Total 11 marks) (2 marks per ratio; analysis – 5 marks):
a. Returns on ordinary equity (ROE) b. Price Earnings Ratio c. Dividend Yield
6. Describe how the organization is using the principles of corporate social responsibility and sustainability reporting (10 marks)
7. Recommendations & Conclusions: a. Based on the analysis above, what recommendations would you suggest for improving the company’s overall financial performance? (5 marks) b. What other information or measures will be helpful in providing a more comprehensive picture of the company’s performance (5 marks)