THE FINANCIAL RATIO ANALYSIS ASSIGNMENT
Students will download the relevant financial data from the Internet and perform ratio analysis for the selected companies. Since successful financial ratio analysis is as much an art as it is a science, students must use common sense and sound judgment throughout the analysis. The purpose of this case study is to provide students with the opportunity to retrieve real time financial data via the Web, and analyze the financial performance of selected companies;
To evaluate how the selected company is performing over time, more than one year's financial ratios are required. Students are instructed to follow the path shown below to retrieve the financial profile for the selected company via DSM.
- Go to Qatar stock exchange website:
www.qe.com.qa
- From the menu, click on listed securities then
Financial Statements
- Choose the year 2014 and hit submit, and then
Download the annual financial report for the two firms which has been assigned to you.
Each group will perform the Ratio Analysis based upon the
following financial ratios:
- Leverage Ratios: to measure the extent to which the company's assets are financed with debt;
- Liquidity Ratios: to measure the company's ability
to pay its bills;
- Profitability Ratios: to measure the company's ability to generate earnings;
- Efficiency Ratios: to measure the company's ability to utilize its assets;
- Market Value Ratios: to measure the market perception about the company's future prospects.
After calculating and explain the financial ratios, each group will compare between the financial ratios in the two companies then write a financial report to explain the strength and weakness points in each company.