As a consultant, you have been asked to report upon the financial performance of any two (2) companies from the following business sectors: Pharmaceuticals & Biotech, Food & General Retailers, Oil & Gas, Telecom Services or Engineering & Machinery. From their respective annual reports or other suitable financial databases (such as Financial Analysis Made Easy-FAME; Morning Star; Osiris; etc.) obtain relevant financial information for your chosen companies for the last 5 years.
2. Task 2: Extraction of ratios
From the above financial platforms, extract the following financial ratios (or the necessary information or variables to calculate the ratios) for the 2 companies over a period of 5 years as follows: Profitability, Liquidity, Efficiency/Working capital management, Capital structure and Stock market performance
Task 3: Discussion of ratios
Evaluate and analyse the performance of these two companies using the ratios extracted over the period under consideration (you may use graphs/char of the ratios extracted to support your analysis). Recommend which of these companies would be a good investment (with the necessary justification)
Task 4: Weaknesses of Ratios
What are the main weaknesses associated with ratio analysis?