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    FA Group Project

    Uploaded by

    lakshay11
    Iron and steel industry top companies past 5 years analysis

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    FA Group Project

    Uploaded by

    lakshay11
    4 views2 pages
    Iron and steel industry top companies past 5 years analysis

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    © © All Rights Reserved

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    PDF, TXT or read online from Scribd

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    Iron and steel industry top companies past 5 years analysis

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    4 views2 pages

    FA Group Project

    Uploaded by

    lakshay11
    Iron and steel industry top companies past 5 years analysis

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 2

    Group Project Analysis Framework

    Framework for Financial Statement Analysis

    Here is a detailed framework to guide the analysis that you have to apply for the
    company(ies) you have selected for your project of FA Term 1, 2024-26.

    1. Each Group have to select an industry (already select by you all) and take 5
    companies based on market capitalisation or any other criteria (must be specified in
    the project report and presentation) and take data from Annual Reports for 5 years.
    Along with annual report you are required to use direct source such as company
    website for gathering the information for the project.
    2. Plagiarism will be analysed and while group will be marked ZERO if it is found that
    there is case of plagiarism
    3. Time new Roman 12 font size, Standard formatting of a Business/Project Report

    Following should be covered in your respective analysis.

    1. Understanding the Business Model and Industry Context

    • Business Model:
    o What are the primary revenue streams?
    o What are the main cost drivers?
    • Industry Analysis:
    o What is the industry structure?
    o Who are the main competitors?
    o What are the industry trends and challenges?

    2. Financial Statement Analysis

    • Income Statement:
    o Revenue: Analyze growth trends, segmentation (products, regions).
    o Driver of Revenue
    o Cost of Goods Sold (COGS): Assess gross margins.
    o Operating Expenses: Break down into R&D, SG&A (Selling, General, and
    Administrative).
    o Net Income: Evaluate profitability trends. Analyse various other paramertrs of
    Income such as Core Income, Permanent Income, Income from continuing
    operations, comprehensive Income and Economic Income
    • Balance Sheet:
    o Assets: Current vs. non-current, liquidity (cash, receivables, inventory).
    o Liabilities: Short-term vs. long-term, debt levels.
    o Equity: Shareholder equity, retained earnings.
    • Cash Flow Statement:
    o Operating Activities: Cash generated from core business.
    o Investing Activities: Capital expenditures, acquisitions.
    o Financing Activities: Debt issuance/repayment, equity financing.

    (detailed commentary and peer analysis and trend analysis of the CFS)
    3. Key Financial Metrics and Ratios

    • Liquidity Ratios:
    o Current Ratio: Current assets / current liabilities.
    o Quick Ratio: (Current assets - inventories) / current liabilities.
    • Leverage Ratios:
    o Debt-to-Equity Ratio: Total debt / total equity.
    o Debt to Total Assets Ratio
    o Equity Ratio
    o Interest Coverage Ratio: EBIT / interest expenses.
    • Profitability Ratios:
    o Gross Margin: (Revenue - COGS) / revenue.
    o Operating Margin: Operating income / revenue.
    o Net Margin: Net income / revenue.
    o Return on Assets (ROA): Net income / total assets.
    o Return on Equity (ROE): Net income / total equity.
    • Efficiency Ratios:
    o Asset Turnover: Revenue / total assets.
    o Inventory Turnover: COGS / average inventory.
    o Receivables Turnover: Revenue / average receivables.
    o Cash to Cash Cycle (C2C)
    o Working capital turnover ratio

    4. Growth and Valuation Metrics

    • Revenue Growth: Year-over-year (YoY) growth rates.


    • Earnings Growth: Trends in EPS (Earnings Per Share).
    • Valuation Multiples:
    o Price-to-Earnings (P/E) Ratio: Stock price / EPS.
    o Price-to-Sales (P/S) Ratio: Market capitalization / total revenue.
    o Enterprise Value to EBITDA (EV/EBITDA): EV / EBITDA.
    o Any other multiple relevant to sector/industry

    Identify the trend in all analysis and attach meaning to these changing trends over
    the years ( 5 years). Why changing are happening. In the light of business model of
    the company

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