Investment Report: Comparison of Financial Performance of RFG and FFGL

ACCOUNTING PRINCIPLES FOR BUSINESS DECISION
INVESTMENT REPORT
STUDENT ID:
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Executive Summary
The given report conducts trend analysis and ratio analysis for two companies namely RFG
and FFGL which both belong to the same sector with the objective of choosing the better
company from the investment perspective. Based on financial performance and stability
parameters based on FY2017, RFG has emerged as the better option. However, the analysis
fails to consider the social and environmental aspects of the activities of the two companies
besides ignoring the limitations of ratio analysis which essentially relies on past data. As a
result, social and environmental performance also needs to be included in this analysis.
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Table of Contents
Executive Summary...................................................................................................................1
Table of Contents.......................................................................................................................2
Introduction................................................................................................................................2
Financial ratio analysis and interpretation.................................................................................3
Superior Investment Bet.............................................................................................................4
Limitations of financial ratio analysis and non-financial information of an entity....................5
Conclusion..................................................................................................................................6
Reference List............................................................................................................................6
Appendix....................................................................................................................................7
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