Choose at least two competitor companies which are quoted on the London Stock Exchange (or other recognized stock exchange).- ( Honda and Toyota)
- The companies shouldNOTbe in the service or financial sector.
- Obtain the companies' annual reports for the last few years (3 years minimum)
- After providing some brief profile/background and/or historical information about your companies :
i) Trend Analysis : Using charts/graphs/tables show the trends in key figures in the Income Statements such as Sales/Gross Profit margin/operating expenses, etc, and also in the Balance Sheet - non-current assets, liquidity position, long-term borrowings, and shareholders funds, etc.
ii) Ratio Analysis : Carry out a detailed ratio analysis of the companies and comment on their performance/financial position;
iii) Share price information/details : Using information from the stock exchange, present an historical chart/table showing how your companies' share prices have performed over the last few years. Try and find explanations for any major peaks/troughs (increases /decreases);
iv) CVP Analysis : Making appropriate and simplifying assumptions, compute and compare the break-even points for your companies over the review period, and comment on how the companies can improve/adjust their prices/margins and overheads in order to improve their profitability going forward;
v) Review of the financial press : Has your company or its competitor featured in the financial press in recent years? What was the key reason for featuring in the press - positive or negative exposure? Any obvious connection to the company financial figures?
vi) Overall summary / conclusion / recommendations : Taking all the above aspects into account, your considered view on the performance/financial position of your companies and their future outlook. Include any recommendations you may have.