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Major Assignment Comparative Financial Statement Analysis of Kabul Based Corporations MBA Non-Business

This document outlines the requirements for a major assignment comparing the financial statements of Kabul-based corporations. Students must choose at least one corporation and analyze its annual reports over 5 years. They should calculate specified ratios from the financial statements for at least 3 years and compare the ratios internally and against industry averages. The analysis should interpret changes in the ratios and provide logical reasons. The assignment must include an executive summary, introduction, corporation background, methodology, analysis, interpretations, conclusion, recommendations, references, and annexure with financial statements and calculations.

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Masoud Afzali
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98 views2 pages

Major Assignment Comparative Financial Statement Analysis of Kabul Based Corporations MBA Non-Business

This document outlines the requirements for a major assignment comparing the financial statements of Kabul-based corporations. Students must choose at least one corporation and analyze its annual reports over 5 years. They should calculate specified ratios from the financial statements for at least 3 years and compare the ratios internally and against industry averages. The analysis should interpret changes in the ratios and provide logical reasons. The assignment must include an executive summary, introduction, corporation background, methodology, analysis, interpretations, conclusion, recommendations, references, and annexure with financial statements and calculations.

Uploaded by

Masoud Afzali
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Major Assignment

Comparative Financial Statement Analysis of Kabul Based Corporations


MBA Non-Business
As a part of your major assignment, you are required to conduct comparative ratio analysis of at
least one Kabul based corporation. As you have studied, in “Financial Statement Analysis”
chapter, method of ratio analysis. You are required to apply those methods on the financial
statements of corporations operating in Kabul or International. You can follow the following
steps:
1. Kindly choose at least one corporation of your choice along with the industry in which that
corporation operates and find their annual reports on the web which must cover at least 5
years. You can find the annual reports on the corporation’s official website.
2. Review the company profile thoroughly and find the comparative financial statements of the
corporation.
3. Calculate the ratios listed at the end of this document from the financial statements of your
corporations for at least three years. To do this, you will need to make an Excel Spreadsheet
that essentially copies certain lines of your various financial statements onto the spreadsheet.
Then, make spreadsheet formulas to calculate each financial ratio that is required.
4. Once you complete calculating the ratios, then go for intra-corporation (Internal comparison)
and external comparison (with industry) and interpret the numerical figures. This is the most
important part of your assignment as much of the evaluation marks will be based on this part.
You will have to give the reasons for any change among the comparing ratios.
5. You will need to give logical reasons for any significant change in the ratio figures across the
years and corporations.
Objective of the Assignment
The goal with this project is to not only give you a chance to calculate the ratios that accountants
and analysts frequently use when evaluating a company, but to also make you look for reasons,
(i.e. “drivers”), for those changes and to think of your own reasons if none are given. If you only
do the calculations but do not discuss why certain changes took place, then you haven’t achieved
the goal of the assignment. Therefore, do your best to go past the numbers!
Required ratio calculations, (in their simplest form), are listed below:
Liquidity Ratios:
1. Current Ratio (Current Assets/Current Liabilities)
2. Quick Ratio (Current Assets – Inventory/Current Liabilities)
Profitability Ratios:
1. Return on Assets (net income/total assets)
2. Asset Turnover (sales/total assets)
3. Return on Sales, (aka profit margin percent) (net income/sales)
4. Assets-to-Equity (total assets/stockholder’s equity)
5. Return on Equity (net income/stockholder’s equity)
Efficiency Ratios:
1. A/R Turnover Rate (sales/accounts receivable)
2. Average Collection Period
3. Inventory Turnover Rate (COGS/average inventory)
Leverage Ratios:
1. Debt to Assest Ratio (total liabilities/total assets)
2. Debt-to-Equity Ratio (total liabilities/stockholder’s equity)

These ratios are explained in your textbook, so if you don’t understand why a particular
calculation is important or relevant, you can look up more information there.
The assignment must have the following major ten headings
1. Executive Summary
2. Introduction to the Assignment
3. Corporations’ Background
4. Methodology
5. Analysis
6. Comparative Interpretations
7. Conclusion
8. Recommendations
9. References
10. Annexure (Financial Statements, Excel Spreadsheet)

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