PROJECT TITLE:

FINANCIAL ANALYSIS
OF M/S ROY
CORPORATION

DIPAK SUTRADHAR
 COMPANY OVERVIEW:

M/S ROY CORPORATION IS AN IMAGINARY COMPANY OPERATING IN THE TECHNOLOGY

SECTOR, SPECIALIZING IN SOFTWARE DEVELOPMENT AND IT SERVICES. THE COMPANY HAS
BEEN PUBLICLY TRADED ON THE NEW YORK STOCK EXCHANGE (NYSE) FOR THE PAST FIVE
YEARS.
GATHERING DATA:
WE HAVE COMPILED THE FINANCIAL DATA FOR M/S ROY CORPORATION
FROM ITS ANNUAL REPORTS FOR THE PAST TWO YEARS, INCLUDING
BALANCE SHEETS, INCOME STATEMENTS, AND CASH FLOW STATEMENTS.
Key Financial Ratios:
a. Liquidity:
Current Ratio = Current
Assets / Current Liabilities
Quick Ratio = (Current Assets
- Inventory) / Current
Liabilities
B. PROFITABILITY:
NET PROFIT MARGIN = (NET INCOME / REVENUE) * 100
RETURN ON EQUITY (ROE) = (NET INCOME / SHAREHOLDERS' EQUITY) * 100
SOLVENCY:
DEBT TO EQUITY RATIO = TOTAL DEBT / SHAREHOLDERS'
EQUITY
INTERPRETATION OF RATIOS:
A. LIQUIDITY:
THE CURRENT RATIO INDICATES M/S ROY
CORPORATION ABILITY TO COVER ITS SHORT-TERM
OBLIGATIONS. A RATIO ABOVE 1 SUGGESTS THE
COMPANY HAS MORE CURRENT ASSETS THAN
CURRENT LIABILITIES, WHICH IS FAVORABLE.
THE QUICK RATIO PROVIDES A MORE
CONSERVATIVE MEASURE OF LIQUIDITY BY
EXCLUDING INVENTORY. A RATIO ABOVE 1
INDICATES THE COMPANY CAN MEET ITS SHORT-
TERM OBLIGATIONS WITHOUT RELYING ON
INVENTORY LIQUIDATION.
B. PROFITABILITY:
NET PROFIT MARGIN MEASURES THE
PERCENTAGE OF REVENUE THAT
TRANSLATES INTO PROFIT AFTER ALL
EXPENSES. A HIGHER MARGIN INDICATES
BETTER PROFITABILITY.
RETURN ON EQUITY (ROE) SHOWS HOW
EFFICIENTLY THE COMPANY IS GENERATING
PROFIT FROM SHAREHOLDERS' EQUITY.
HIGHER ROE SIGNIFIES BETTER
UTILIZATION OF EQUITY INVESTMENT.
SOLVENCY:
THE DEBT TO EQUITY RATIO EVALUATES THE COMPANY'S LEVERAGE AND
FINANCIAL RISK. A LOWER RATIO IMPLIES LESS RELIANCE ON DEBT FINANCING,
WHICH IS PREFERABLE FOR LONG-TERM STABILITY.
INVESTOR INSIGHTS:
M/S ROY CORPORATION HAS MAINTAINED A
HEALTHY LIQUIDITY POSITION OVER THE PAST
TWO YEARS, WITH CURRENT AND QUICK RATIOS
CONSISTENTLY ABOVE INDUSTRY AVERAGES.
PROFITABILITY METRICS SHOW A STEADY
INCREASE IN NET PROFIT MARGIN, INDICATING
EFFICIENT COST MANAGEMENT AND REVENUE
GROWTH.
THE ROE REFLECTS THE COMPANY'S ABILITY TO
GENERATE RETURNS FOR SHAREHOLDERS,
OUTPERFORMING INDUSTRY BENCHMARKS.
DESPITE THE FAVORABLE PERFORMANCE,
INVESTORS SHOULD MONITOR THE DEBT TO
EQUITY RATIO TO ENSURE THE COMPANY
MAINTAINS A SUSTAINABLE CAPITAL STRUCTURE
AND DOES NOT BECOME OVERLY LEVERAGED.
PRESENTATION OF FINDINGS: OUR PRESENTATION WILL INCLUDE VISUAL REPRESENTATIONS OF FINANCIAL DATA USING
CHARTS AND GRAPHS TO ILLUSTRATE TRENDS OVER TIME. WE WILL PROVIDE CLEAR EXPLANATIONS OF EACH RATIO AND ITS
IMPLICATIONS FOR INVESTORS. ADDITIONALLY, ACTIONABLE RECOMMENDATIONS WILL BE OFFERED BASED ON THE ANALYSIS,
HIGHLIGHTING POTENTIAL RISKS AND OPPORTUNITIES FOR INVESTORS CONSIDERING M/S ROY CORPORATION .
BY CONDUCTING THIS COMPREHENSIVE FINANCIAL ANALYSIS, INVESTORS CAN MAKE INFORMED DECISIONS REGARDING THEIR
INVESTMENT IN M/S ROY CORPORATION , UNDERSTANDING ITS STRENGTHS, WEAKNESSES, AND OVERALL FINANCIAL HEALTH.