Using the company Guarantee Trust Bank Plc. Assume that you are an analyst who works on behalf of existing investors.
Prepare an analysis report, where you will do the following:
- Use the ratios covered in this unit, to evaluate the financial performance and health of the business in the following areas:
- Profitability
- Liquidity
- Efficiency
- Financial Gearing
- Compare the financial performance and health of the business a competitor business.
- In each area, make clear recommendations as to how the company’s performance/health can be improved. If no improvement is needed, highlight what are the benefits to investors by the good performance of the business in each of the areas (a, 1-4)
Proposed structure of the report (the word count per section is indicative):
- Title page
- Executive summary (150 words max)
- Introduction (100 words max)
- Business and competitor brief profile (200 words)
- Analysis (800 words)
- Profitability
- Liquidity
- Efficiency
- Financial Gearing
Conclusions (150 words)
Technical aspects
- You need to perform time-series (at least 3 years; preferably 5 years) and comparative analysis (between your chosen company and its competitor)
- For each area, produce and present the ratios for both businesses – your selected business and its competitor, in the same table/graph. You need to show your workings (e.g. formula and figures used).
- You need to perform time-series (at least 3 years; preferably 5 years) and comparative analysis.
- For each area, produce and present the ratios for businesses, your selected business and its competitor, in the same table/graph.
Note
It involves comparing the financial performance and health of the business a competitor businesses so keep that in mind as you chose which business to focus on. If an appropriate comparable organization is available, it makes the analysis much more convincing.
You can generate some figures/numbers to run the time series analysis. It must not be real
