Project work using Ratio analysis


1. Choose a company of your choice.

2. Pull out the financial report (which has to be real) or annual report of the company including, year-end financial statement (i.e.) Profit and loss or Income statement, Balance sheet and Cash flow statement.

3. Make sure at least you have two years data for e.g. 2016, 2015 or 2017, 2016.

4. Use the Power point of chapter 4, text book or any other reference materials to calculate those ratios discussed in the chapter. (refer PPT).

5. Calculation for Ratio will be including define the ratio, items considered in the calculation, present the calculation, result for 2 years and give your interpretation based on the ratio result.

For example, if calculating Current ratio, describe it first, followed by what items you have considered as current assets, and current liability. Followed by calculation and present the results with your interpretation, comparing with the standard ratios.