Report on Financial Performance.
Added on - 16 Sep 2019
Report on Financial PerformanceAssessment DetailsReviewing the financial statements of Company ABC and Company XYZ below, eachstudent is required to:(a) Compute for each company the following:(40 Marks)(i) Current & acid test ratio for assessment of liquidity of both companies(ii) Gearing ratio for assessment of gearing for both companies(iii)Ratio analysis to compare the efficiency of both companies(iv) ROCE, gross and net profit margin for assessment of performance and returnoninvestment for both companies(b) Compare and comment on the performance, efficiency, liquidity and gearing of bothcompanies(45 Marks)An outline of the marks breakdown is as follows:Calculation of relevant ratios:(40Marks)Write a report on the financial performance of both business as evidenced formthe financial documents and calculated ratios stating the meaning of eachcalculated ratio for the respective companies. Apply the theory behind eachratio with the evidence from both financial statements in formulating youranswer.(45 Marks)Professional presentation of the document(15 Marks)1|Page