Report on Financial Performance Assessment: Company ABC and XYZ

This report analyzes the financial performance of two companies, ABC and XYZ, using ratio analysis. The assignment involves calculating and interpreting various financial ratios, including current and acid-test ratios for liquidity assessment, gearing ratios, and profitability ratios like ROCE, gross, and net profit margins. The analysis compares the efficiency, liquidity, and gearing of both companies, drawing conclusions based on the calculated ratios and the provided financial statements. The report includes a detailed explanation of the ratios, their significance, and how they reflect the financial health of each company. The assignment follows the Harvard Referencing System and requires a word count of 1,200 words excluding the bibliography and appendices.