Case Study Guide

1. Read carefully and understand the case study. Answer questions 2 to 10 that are applicable to
your case study. Formulate your recommendations.

2. What financial information must have been used in the case study?

This includes financial statements (income statement, balance sheet, cash flow statement),
financial ratios, and other relevant financial data. Pay attention to the financial performance,
liquidity, profitability, and solvency of the company.

3. Identify the Key Financial Issues: Identify the main financial issues or challenges presented in the
case study.

This could include problems related to financial management, investment decisions, capital
structure, cash flow, or financial sustainability. Determine the specific financial questions or
decisions that need to be addressed.

4. What kind of financial analysis was used in the calculations and interpretations of financial
ratios?

Indicate the calculation and interpretation of financial ratios such as liquidity ratios (current
ratio, quick ratio), profitability ratios (gross profit margin, net profit margin), and efficiency ratios
(asset turnover, inventory turnover). Compare the company's financial performance to industry
benchmarks or competitors to assess its relative position, when possible.

5. How was the Capital Structure of the company assessed?

Assess the Capital Structure: Evaluate the company's capital structure, including its mix of debt
and equity financing. Analyze the cost of capital and the implications of the company's leverage.
Consider the impact of different capital structure decisions on the company's risk and
profitability.

6. Evaluate investment decisions made by the company.

Analyze any investment decisions or projects presented in the case study. Apply financial
evaluation techniques such as net present value (NPV), internal rate of return (IRR), or payback
period to assess the feasibility and profitability of the investments. Consider relevant factors like
cash flows, discount rates, and risk.

7. What financing options were availabe to the company?

 Evaluate different financing options available to the company, such as debt financing, equity
financing, or alternative sources of capital. Assess the advantages, disadvantages, and
implications of each option. Consider the company's financial needs, cost of capital, and risk
tolerance.

8. Identify and assess the financial risks faced by the company.

This could include market risks, credit risks, operational risks, or regulatory risks. Evaluate the
potential impact of these risks on the company's financial performance and sustainability.

9. Develop Financial Recommendations.

Based on your analysis, develop specific financial recommendations for the case study company.
Provide clear and well-supported suggestions for improving financial performance, managing
risks, optimizing capital structure, or addressing any other identified financial issues.

10. Consider Ethical and Legal Implications.

Evaluate the ethical and legal implications of the financial decisions or actions discussed in the
case study. Consider issues such as financial fraud, conflicts of interest, or compliance with
financial regulations. Ensure that your recommendations align with ethical standards and legal
requirements.