Business Finance Case study Assignment -
The objective of this assignment is to assess your group ability to evaluate and to compare the operation and performance of two companies (Peer Group Analysis) that are competitor to each other using Fundamental Analysis technique (Financial Ratios).
Your group need to choose two companies and the two companies have to be Australian public listed companies, operating under the same industry, targeting the same consumers, producing similar products or services and similar in size.
Note:
You need to do on these two companies;
1. Botanix Pharmaceuticals Ltd.
2. Benitec Biopharma ltd.
You need to extract the latest year financial statements (Income statement, balance sheet etc.) of your chosen companies from online source. Such as ASX website.
Each company will be evaluated and compared based on the five aspects to determine which company is better fundamentally.
The five (5) aspects:
- Short term solvency (Liquidity ratios)
- Long term solvency (Financial Leverage ratios)
- Asset utilization (efficiency or turnover ratios)
- Profitability ratios
- Market value ratios
You need to present a well-structured Report using appropriate style and language.
Scenario: You're an Investment Manager of a large corporation based in Australia. There's one big institutional investor from overseas is interested in investing in the Australian market, however the investor only interested in the blue chip companies. You've been asked to choose two large companies operating under the same industry in Australia (the industry you think will have the most promising future for investment) then evaluate and compare them. finally make a recommendation through your Report to the investor which one is more superior fundamentally.
Structure of the Report:
1. Title
2. Introduction
3. Table of Content
4. Body (In text citation: paraphrased or quotation to support your arguments)
5. Conclusion
6. Recommendation
7. Reference lists (Harvard Rules techniques)
Minimum words limit: 3500 words.