Topic 8 Financial Statements

@trephena said:

@iq2k16 – in principle that sounds fine. You will need to justify your choice and show that you are using the data to make useful comparisons setting out the limitations of your approach. You might need to use the group data when it comes to share price and earnings per share (also possibly gearing too) as you should try to have some investor ratios but briefly explain the basis behind your calculations. It is often the trends in the data that are important and of course what has driven the ratios. As these underlying reasons behind the figures are what are really important focus on strengthening the links with models when doing the evaluation of the main company.

Noted!Thanks 🙂

@eowyn said:
Hello,

There are two types of Financial Statements in the Annual Reports of United. One type has (in millions, except share data) under the heading and the other type only has (in millions). I want to know what is the difference between these two and is the (except share data) one is acceptable for basing ratios on?

I don’t understand your question – something seems to be missing in your explanation here. So one has share data and the other doesn’t – but how does that affect the revenue and profit?? Surely data about shares is only required for the investor ratios section so what is the problem???

Remember as pointed out dozens of times in Using an Airline for Topic 8, you need to get away from the notion that your analysis should be all about calculated ratios and adopting a textbook approach. KPIs actually used in the industry for measuring efficiency are just as important and should not be ignored.

Hello, I wouldlike toknow if Telecoomunications can be network providers rather than mobile phone providing company
for example, iwould like to know can i use MTN Uganda Ltd as my organisation??

When doing the financial analysis against the competitor is it necessary to compare the results throughout the 3-year period or would it suffice to do a comparison on the latest FY only? I was advised that given the word count limit, a comparison of a single FY (being the latest FY) to be enough. Thank you.

Hi Trephena,

which ratios do you recommend for topic 8 airline industry?

HI, Is Astrazeneca a competitor of GSK?

@Hamasah – really do not like recommending particular companies – as it depends on availability of information and many other factors (and I just do not have the time to do the research!) – discuss it with your mentor as that is what you are paying them for!

@kennard – Go for the group level then and discuss the issues in the Limitations. You have GOT to use external info otherwise your report is unbalanced and you will be failed on Evaluation &Analysis and Information Gathering. If more info /better data is available for Verizon why not make that your main company?

Please i need some help. Should i do an in depth analysis for my comparator as i have for my main company?

thanks so much Trephena

@linia

1. Start Part 3 with the models -the tax thing is a threat and your explanation is fine (although I would probably word it differently as ‘uncertainty over governments raising local airport taxes’
2. Don’t do this – give proper referenced reasons all the time and cut out all the superfluous stuff about why you chose the topic and the difference between primary and secondary data if you need to save words.
3. You should always try to express things in your own words if you can’t you must use quotation marks as well as a reference
4. Probably no need to reference if just a template
5′ Either of these in the text (preferably with page number) is acceptable and only one reference in the list (see my Golden Rules artcle on our homepage http://www.opentuition.com/obu

Shall I upload the balance sheet and profit and loss of the main company in pdf and of competitors also another one, can I unite them in 1pdf ?
Because I have to upload 3 appendices :
1) first -Ratio calculation with FS extracts of both companies
2) second-One pdf with Balance Sheet and Income Statemenst of my chosen company
3) third- second pdf with Balance Sheet and Income Statement of my competitor

Furtermore, as Take INc . stat. and balance sheet from the annual report 2015 which is about 300 pages, I think I will print only that pagesof financ. statements, print and then scan as pdf seperately or together of both companies ???????

Hi,

I am currently doing my evaluation and analysis project for topic 8.

I am working on Excel with ratios (do the ratios been referenced in the Excel, i mean where i found them) or i can use whatever ratios under lets say profitability, liquidity, capital and efficiency? I used 12 ratios which i developed the graphs from my main company and also for benchmarking!

I saw that some ratios that i calculated had different results as from websites as FT and morningstar, is it going to have any effect that? Roce i used= earnings before interest and tax/total assets – current liabilities!

Also, every graph which i will include in my project need to say below eg. Profitability Ratios (Appendix 1)?

Thank you, i hope you understand what i mean!

Dear Trephena, Can you please refer me to the post where there is discussion about companies Using GAAP rather than ifrs and how different the approach will be for using FS prepared as per GAAP.

Thanks