Financial Statement Analysis Framework
Continuing with assignment 1 analysis report, use the same company your group has chosen to complete the remaining steps of the Financial Statement Analysis Framework. The remaining steps include:
1. Processing data: Using information you’ve collected in the previous step (collect data), begin processing the data using appropriate analytical tools.
a. Prepare appropriate financial ratios. b. Prepare common-size income statement and balance sheet. c. Compare company’s financial ratios and common size statements to key
competitors in same industry. 2. Analyse/interpret the processed data:
a. Evaluate consolidated financial statements. b. Interpret the results generated from previous step (Processing data).
3. Develop and communicate conclusions and recommendations: a. Answer questions listed in assignment 1. b. Inform client of all possible investment risks and analysis limitations. (1 mark) c. Give the client a clear recommendation of investment decision.