I am currently doing an MBA and this task has come up. Any assistance in terms of commentary, input or suggested resources to obtain relevant information would be greatly appreciated. I have financial reports etc from the ASX but would love to get more specific third party analysis to cross check my own findings and opinions.
Any and all assistance greatly appreciated.
I am looking at TAH and TTS
Your task is to compare and contrast the historical (for the last 2 years) and expected future performance of a listed company and a competitor in a similar line of business, and present your findings in the form of a report which will cover both qualitative and quantitative performance elements in a logical cohesive format.
The qualitative component of your discussion should include (but is not constrained to):
• A BRIEF background on each company including how they are placed within the industry.
• A BRIEF overview of the recent stock price movements for both companies.
• The impact of general local and global economic conditions on the companies (if any).
• Industry trends and an assessment of each company’s ability to cope with these.
The quantitative component should include:
• An initial analysis of trends in the items contained in the profit and loss statements, balance sheets and statements of cash flows; appropriate relevant ratios ( do not use multiple ratios which measure the same thing) measuring profitability, liquidity, working capital management, leverage/gearing and financial risk (market-based ratios).
• A highlighting of the most important changes within these ratios and an identification of the reasons for these changes.
• A comparison of the quantitative analysis for the two companies and an identification of the reasons for any differences.
Taking into account the quantitative and qualitative analysis you are then required to make a recommendation which will fall into one of the following three categories:
1. Invest in the company
2. Invest in the competitor
3. Invest in neither
You should include a conclusion in which you comment on the strengths and weaknesses of your overall analysis encompassing what your analysis has accomplished and what are its limitations