First and foremost, we would like to thank to our lecturer of this project, Miss Luau for the valuable guidance and advice. She inspired us greatly to work in this project. Her willingness to motivate us contributed tremendously to our project. We also would like to thank her for showing us some example that related to the topic like financial analysis formulae, ratio analysis, vertical analysis, horizontal analysis and so Besides, we would like to thank the authority of Management and Science University (MS) for providing us with a good environment and facilities to complete this project.
MS give us a good environment of library which give us more information to analyst the project. Apart from that, we would like to take this opportunity to thank to the members of group. Without the cooperation among this team members this project will not be completed. In addition, we would also like to thank Dig. Com Bertha, Satiate. Com Bertha and Maxis Bertha which provide us valuable information like historical data and annual report as the guidance of our project.
Finally, an honorable mention goes to our families and friends for their understandings and supports on us in completing this project. Without helps of the particular that mentioned above, we would face many difficulties while doing this project. Financial analysis refers to an assessment of the viability, stability and profitability of a business, sub-business or project. It is performed by professionals who prepare reports using ratios that make use of information taken from financial statements and other reports.
These reports are usually presented to top management as one of their bases in making business decisions. Besides, investor also look upon this analysis because there is important information contain on the analysis to make hem either to invest or not to one’s company. Financial analysts often assess the following elements of a firm which is firstly is profitability. Profitability is ability to earn income and sustain growth in both the short- and long-term.
A company’s degree of profitability is usually based on the income statement, which reports on the company’s results of operations. Next is solvency which is the ability to pay its obligation to creditors and other third parties in the long-term. Furthermore, liquidity is the firm ability to maintain positive cash flow, while satisfying immediate obligations. Lastly is stability, which is the firm’s ability to remain in business in the long run, without having to sustain significant losses in the conduct of its business.
Assessing a company’s stability requires the use of both the income statement and the balance sheet, as well as other financial and non-financial indicators. After discussions from the group members, we agree to choose communication company as the three company that will we analyst. The three company is Satiate. Com Bertha, Dig. Com Bertha and Maxis Bertha. From this three company we sort out their financial statements, financial position and their financial cash flow to construct a ratio for the investor.