Analyse the structure of the industry in which the firm operates and whether it is domestic-focussed or has a global nature. Identify the industry’s major companies and where they operate.
Evaluate the relative historical financial performance of the company among its peers
identify the firm’s major competitors and discuss why they have been selected
identify, and explain the relevance of, five financial ratios of your choice (not to include ROE, Net Profit Margin, Total Asset Turnover or Financial Leverage) for the company and its peers over a historical period of five financial years.
explain the performance of the company compared to its peers using this analysis
analyse and explain the reasons for changes in these ratios over the past five years and compared to the average of the past five years
do not simply describe the changes in the ratios
Analyse the company’s/industry’s current issues and explain the effect of these issues on the company’s future earnings
At the Macroeconomic Level • general factors that apply for the industry (GDP, employment, growth of the industry, regulation, global factors, supply, demand, prices of inputs and outputs, etc.)
At the Microeconomic Level
• the company- and industry-specific factors (operation, financials, objectives, competition, etc.)
As a SWOT analysis • detail the Strengths, Weaknesses, Opportunities and Threats to the company
As either a PESTEL or a Porter analysis • analyse the company’s position in its industry using one of these techniques