For your project, choose any publicly traded (listed in DSE or
any other exchange in the world) company. Get the last 3 years of
Data and answer the following questions (There are only 10 ratios
that you need to calculate to answer the 5 questions):
1. How liquid is the firm? Given the last 3 years data, what kind
of assessment can you make on the firms ability to pay its bill?
[Ratios to use: Quick Ratio, Inventory Turnover Ratio and average
collection period]
2. How has the firm financed the asset? Given the last 3 years
data, what kind of assessment can you make on its leverage? what
kind of assessment can you make on the firms ability to pay its
bill? [Ratio to use: Debt Ratio, Interest Coverage Ratio]
3. How efficient the management of the firm has been in generating
sales using its asset over the period of last 3 years?[Ratio to
use: Total Asset Turnover]
4. Has the firm earned adequate returns on its investment? What has
been the trend over the last 3 years?
[Ratio to use: Operating Profit Margin, Net Profit Margin,
ROE]
5. Are the firm’s management creating value for it shareholders in
terms of market value?
[Ratio to use: P/E ratio]
any other exchange in the world) company. Get the last 3 years of
Data and answer the following questions (There are only 10 ratios
that you need to calculate to answer the 5 questions):
1. How liquid is the firm? Given the last 3 years data, what kind
of assessment can you make on the firms ability to pay its bill?
[Ratios to use: Quick Ratio, Inventory Turnover Ratio and average
collection period]
2. How has the firm financed the asset? Given the last 3 years
data, what kind of assessment can you make on its leverage? what
kind of assessment can you make on the firms ability to pay its
bill? [Ratio to use: Debt Ratio, Interest Coverage Ratio]
3. How efficient the management of the firm has been in generating
sales using its asset over the period of last 3 years?[Ratio to
use: Total Asset Turnover]
4. Has the firm earned adequate returns on its investment? What has
been the trend over the last 3 years?
[Ratio to use: Operating Profit Margin, Net Profit Margin,
ROE]
5. Are the firm’s management creating value for it shareholders in
terms of market value?
[Ratio to use: P/E ratio]
