As last-term Business students, there is an expectation of what should be included in a Financial Analysis performed on a company. Your discussion should embody those expectations which I have summarized below, accompanied by clarification notes relative to the Pegatron, Corporation.
1. A summary of the Financial Direction of the Company - (Expectations: Three Years' Sales and Profitability with commentary on the historical direction, such as growth).
2. A Financial Ratio Analysis (Expectations: Use the company’s income statement and balance sheet to calculate no less than a total of ten (10) key financial ratios to the business. There must be a mix of four different key categories inclusive of the leverage, liquidity, profitability, and efficiency ratios. The method used to calculate each ratio (i.e., formula with data), must be shown).
3. An Industry Comparison: (Expectations: Each ratio should be compared to the equivalent published ratio of the industry (i.e., the industry norm)).
4. Numbers 2 and 3 should be presented in table form as illustrated below:
FINANCIAL ANALYSIS TABLE FOR Pegatron Corporation
Leverage Ratios
First Ratio Name Formula Calculation Ratio Industry Norm Comparison to Norm XYZ Ratio abc/def 00000/00000 00 00 equal/weak/strong
5. An explanation must should follow the table explaining the significance of each ratio, as well as an explanation supporting the the comparison to the norm.