From a reliable database select a company, within the FTSE 100.
Source cue: Company website, FAME, OSIRIS, Google Finance, Morning Star, Yahoo, Annualreports.com finance web pages.
1 (one) company on the FTSE 100 Stock Exchange, in the Manufacturing, Banking Sector and/or Retail Industry.
Present 5 years data on key aspects of the company performance including Sales/Turnover, Gross Profit, Operating Profit and Long term liabilities, (Net) Profit after Tax. Forecast additional 5 years of each of the account balances.
TASK 2: PRESENT IN REPORT FORMAT THE JUSTICATION FOR THE COMPANY SELECTED.
Justify the selection of the company chosen, following the format of a report, with cover page, title page, table of contents, introduction and chapter (sections) meeting each requirement of the assignment.
2.1: Using Turnover, Net Profit as X and Y respectively, across the 5 years, find the Pearson Coefficient of Correlation. Plot the scatter diagram graphs of relationship between these two across the years
2.2: Comment on the relationship between Long term liabilities and Net profits, as ascertained from the analysis of this company’s 5 year financial data.
2.3: Descriptive statistics of Mean and Standard Deviation for Gross Profit, Operating Profits, Long term liabilities, plotted on graphs and presented in the main section with commentaries on observations,
Compared against the historic and forecast years.
Task" PERFORM REGRESSION ANALYSIS WITH A SPECIFIC YEAR
Use Turnover as Y, find correlation equation with Gross Profit, Operating Profits, Long term liabilities, Net-Profit as X1, X2, X3, X4, in the equation.
y = a + b1(x1) + b2(x2) + b3(x3) + b4(x4)
Task : Correlation Analysis
Perform correlation analysis between the Net profits of 5 years, and Average Market prices of the shares for each of the years.
Analyze the forecast years in the light of the results from correlation and provide reasoned arguments on the future market share prices. Insights could be presented including potential future dividends.