Requirement You are required to perform PROFITABILITY ANALYSIS of three organizations under consideration will be conduc

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Requirement
You are required to perform PROFITABILITY ANALYSIS of three organizations under consideration will be conducted for the recent THREE financial years.
Profitability Ratio Analysis Project In this project, you have to:
• Select three listed companies existing in the same industry.
• Get their financial statements for the most recent three years and • Perform the PROFITABILITY RATIOS’ analysis
Profitability Ratios Profitability ratios measure the earning ability of a firm. These include:
 Net Profit Margin
 Return on Assets
 Operating Profit Ratio or Margin
 Operating Ratio
 Operating Expense Ratio
 Earnings per Share
 Dividend per Share
 Price Earnings Ratio
 Return on Assets
 Return on Shareholders’ Equity
 Gross Profit Margin
Trend Analysis Trend analysis studies the financial history of a firm for comparison. It is the comparative analysis of a company's financial ratios over time. This helps to detect problems or observe good management. Ratios are plotted on bar graph using excel to see whether the ratios are falling, rising, or remaining relatively constant.
Title Page (sample attached in the end) Table of contents
Format of Report
Executive Summary (250 – 300 words) Chapter 1: Introduction
 You are required to provide a brief introduction of the selected companies and their business activities.
1.1 Financial Period Under-Consideration for Analysis: You are required to mention the financial years for ratio analysis such as: FY20XX-FY20XX
1.2 Objectives: As mentioned above
1.3 Significance: You will state here the significance of this Project for the stakeholders like investors,
creditors and debtors, and the management. You will state here why you want to carry out this type of Project.
Chapter 2: Data Processing & Analysis
This section should provide solid or concrete foundations to the study. Quality and value of the research report depends upon how precisely and accurately the data is collected, processed, analyzed and interpreted so that fruitful conclusions may be drawn out of it. It includes:
2.1 Data Collection Sources: (Describe the sources used for data collection)
2.2 Data Processing and Analysis Tools: Mention the methods used to extract and process the
information gathered
 Software used to process the data i.e. MS Excel
Chapter 3: Data Analysis
3.1 Profitability Analysis (details already given above) 3.2 Trend Analysis (details already given above)
3.3 Interpretation and comparison In this section, interpret the graph shown above and explain the reasons/factors for decreasing or increasing trend of this ratio. Also compare ratio of all three companies and state which company is better in accordance with the ratio calculated.
Note: You have to follow the same format for all the ratios that you will calculate. This format will cover Ratio analysis and Trend analysis as in trend analysis ratios are plotted on graphs to show the increasing/decreasing trends. Remember, without formulas, working, graphs and interpretations your analysis will NOT be accepted.
Instructions:
Please follow these instructions strictly:
• You must perform complete profitability ratio analysis of the selected companies for the MOST RECENT THREE YEARS.
• You must provide all the supporting calculations, working and interpretation of results obtained from each ratio.
NOTE: Failure to provide the related financial statements, supporting calculations and working of analyses in your project will affect the worth of your work and may result in failure/rejection of the project. • You must not perform the profitability analyses of companies having losses.
• While selecting companies for analyses, keep in mind that they are from same industry for example; you cannot select one company from textile, one from cement and one from Sugar. All three companies should be either from textile or from sugar sector.
• You can get annual reports of companies from companies’ offices, stock exchanges or from companies’ websites.
Chapter 4) Summary, Conclusion & Recommendations:
4.1 Summary Provide a brief summary of the project
4.2 Conclusion Precisely state the final outcomes of the work. Conclusion/findings should be in short yet comprehensive sentences/paragraphs. Each sentence/paragraph describing new idea should be bulleted.
4.3 Recommendations This section deals with your proposed solutions or plans to cover and remove all the flaws and deficiencies that you think (in light of data processing and analysis) needs to be removed or improved. Recommendations should be clear, specific and based on your findings. They must be logical and applicable.
Bibliography A bibliography is a list of source materials on a particular subject. In a formal report it shows what books and other library materials were consulted. As part of the reference matter, it follows the appendix or appendices. APA format should be used for citing the references.