BWFF1013

GROUP PROJECT

Topic : Assessing Firm’s Financial Performance

Type of analysis : Trend Analysis ( 5 years)
Period of analysis : Example (2014 – 2018)

INSTRUCTION:
1. This project must be written in Times New Roman 12-pt. font and double spaced, and
submitted as a Microsoft Word document.
2. Any projects that show evidence of PLAGIARISM will result a grade of ZERO for all
group members. Plagiarism is a serious offence and it will not be tolerated.
3. Submit this project using the project format provided:
i. Hardcopy (printed) format; and
ii. Softcopy (saved in CD) format to detect for plagiarism.
4. The due date for submission of the project is ________________. Late submission will be
penalized according to the rules.
5. Failure to comply these instructions will affect the evaluation of your marks in this project.

OBJECTIVES:
By doing this project, the students will be able to:
1. calculate the financial ratios,
2. explain the use of financial ratios,
3. value the company’s perfromance and
4. get themselves familiar with the real practice of industry financial statndards.

REQUIREMENT:
Students will work on the project collaboratively in groups of five (5) students. Each group must
choose a company listed on Bursa Malaysia. Students will download the relevant financial data
from the internet and perform ratio analysis for the selected companies. The company MUST be
selected from the CONSUMER PRODUCTS sector only. For additional information, please
refer to Bursa Malaysia website: (http://www.bursamalaysia.com)

Trend analysis provides signals as to whether the company's financial health is likely to improve
or deteriorate. Each student will perform the trend analysis based upon the following financial
ratios:

1. Liquidity ratios
a. Current ratio
b. Quick ratio
2. Asset management ratios
a. Average collection period
b. Receivable turnover
c. Inventory turnover
d. Total asset turnover
e. Fixed asset turnover
3. Leverage ratios
a. Debt ratio
b. Debt equity ratio
c. Time interest earned
4. Profitability ratios
a. Gross profit margin
b. Operating profit margin
c. Net profit margin
d. Return on asset
e. Return on equity
5. Market value ratio
a. Earnings per share (EPS)

CONTENT:
The project must adhere to the guidelines given below.

1. Introduction
Introduce the project 1) describe what you are going to do and why 2) followed by the
background of the company. Prepare a small company profile.

2. Methodology
Calculate every ratio for the firm.

3. Findings and analysis (Interpretation)

After showing the calculations, you compare the performance for 3 years (adding graph
in an advantage). Provide aexplanation for each ratio (for example, discuss why this
situation happen). Do this for all the required ratios one by one.

4. Conclusion and recommendation

Conclude your work by answering the questions below: 
a. What is your judgment of the current financial condition of the company (overall for
5 major ratios)?
 Liquidity ratio
-Does the company look like a good credit risk in the short-term? Prove this
argument.
 Asset Management ratio
-How well the company is using its assets? Prove this argument.
 Leverage ratio
-Will the company be able to pay of their long-term debt and pay interest as it
comes due? Prove this argument.
  Profitable ratio
-Do you fell the company performs well in terms of its ability to generate profit?
Prove your argument.
 Market value ratio
-Do you feel the company represents a good investment? Prove this argument.
b. Provide your recommendations for improvement (if any).

5. References
Reference must be used when appropriate.

Thank You.