Assume that a friend of yours has inherited a large sum of money and is seeking advice with respect to whether the company in question is a worthwhile investment. Perform a thorough analysis of the company to support your recommendation to your friend.
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Your report should be well reasoned and supported and should include both introductory and concluding paragraphs.
- Company Name is: Mazaya Holding (http://www.mazayaholding.com)
Your report should include:
- A brief description of the company’s primary business activities. This description should include a brief historical summary, details concerning competitors, if relevant, the company’s position within the industry, directions for the future, etc.
- A brief summary of stock market activity of the company. Changes to the stock price of your company over the past few years would be of particular interest. You should include a discussion of the nature of risk in the environment. http://www.dfm.ae/
- A common size (vertical) analysis and trend (horizontal) analysis for both the income statement and balance sheet and comparison between financial years in 2015 and 2014.* Commentary on significant amounts, trends and relationships should be included.
- Analysis of the company’s cash position. Perform complete cash flow analysis between financial years in 2015 and 2014.
- A ratio analysis and comparison to industry averages for the entire financial statements in 2015 and 2014
( 1- Price-Earnings Ratio 2- Working Capital Ratio 3- Current Ratio 4- Inventory turnover Ratio 5- Days in Inventory Ratio 6- Accounts Receivable turnover Ratio 7- Average Collection Period Ratio 8- Debt to assets Ratio 9- Times Interest Earned Ratio 10- Free Cash Flow Ratio 11- Earnings Per Share Ratio 12- Price Earnings Ratio 13- Gross Profit Rate Ratio 14- Profit Margin Ratio 15- Return on Assets Ratio 16- Assets Turnover Ratio 17- Payout Ratio 18- Return on Stockholder’s Equity Ratio )
- Graphs or Charts. that lend credibility to your report.
*Common size income statement compares all amounts to net sales. The analysis measures each item as a percentage of net sales. Common-size balance sheet compares all amounts on the balance sheet to total assets. The analysis measures each item as a percentage of total assets.
Marking Scheme
The project is worth 70% of your final grade.
The relative weight of the component parts of the project will be:
| For each area as listed above: | |
| Part | |
| 1. | 10% |
| 2. | 10% |
| 3. | 15% |
| 4. | 15% |
| 5. | 15% |
| 6. | 15% |
| Subtotal | 80% |
| Introduction and conclusion, reasoning of advice and recommendation made and utilization of analysis performed | 20% |
| Total | 100% |
