I can given you the financials of Clover as the company to be examined or analysed or you can download any financials (most significant, the company must be listed on the JSE). The more narrative the better. More particularly the interpretation and assessment must be clear and precise, 2000 words.
I like the unique part of it. I trust you realize that there are graphical examples which are needed in the analysis. For each and every ratio, you will have to interpret separately the outcomes, The more narrative the better.
APPENDIX: INDIVIDUAL ASSIGNMENT
Select any company of your choice listed on the Johannesburg Stock Exchange. Using the company’s financial statements (covering five financial periods) as well as information from other sources, you are required to:
1. Perform a detailed ratio analysis covering the liquidity, asset management, debt management and profitability of the company. (presentation of information both in excel and graphical illustration)
2. Interpret the analysis.
3. Based on your interpretation, perform a SWOT analysis and identify appropriate risk factors.
4. Make predictions of relevant information.
5. Place a value on the ordinary shares of the company making use of the following valuation methods:
- Price-earnings ratio method
- Free cash flow method
- Net asset value method.
6. Make a recommendation as to whether the shares should be bought.
It is important to use the information in such a way that appropriate conclusions can be reached. Before each step consider how it will help you to reach the objectives stated above.