Class Project: Comparative Financial Analysis

Due Date: Monday, 21st April, 2023

Make a group of 4 people and choose an industry from PSX. Each member of the group should select
1 company from the industry. Industry averages will be calculated by combining the financials of the
4 companies together.

Major Requirements: Comparative Financial Analysis of four (4) years data of a company with its
Industry average.
Limitations: Reports are to be limited to a maximum of 15 pages of text. Supporting tables can be
added in the appendix (other than the 15 pages). All sources of information must be disclosed.

Weightage: 10%
The project will require you to identify and obtain relevant publicly available information on the
selected companies. A suggested format and required content is as follows, although the format can
be adjusted if you think that another approach better fits.
1. Business Strategy: Describe the industry and the company’s position within the industry and,
most importantly, the sustainability of profits generated by the company’s strategy. Please
do not simply repeat the company overview from the company’s website or Management
Discussion and Analysis.
2. Financial Analysis: Calculate ratios and provide commentary on the following factors:
 Comparative Evaluation of Short Term Liquidity
 Comparative Evaluation of Operating Performance and Efficiency
 Comparative Evaluation of Capital Structure and Long-Term Solvency
 Comparative Evaluation of Profitability
 Comparative Evaluation of Market Measures (Ratios)
 Comparative Horizontal and Vertical Analysis of the company