Calculate and compare key financial ratios

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Reference no: EM133161237

Question - Assume that an investor from Canada had approached you at PricewaterhouseCoopers (PwC) seeking investment advice on GrainCorp Limited and Elders Limited. PricewaterhouseCoopers is Auditor for GrainCorp Limited and Elders Limited for the (Annual Report) financial year 2021. You are required to take the role of business advisor/Analyst for the purpose of providing a detailed report based on the following specific questions relating to what the investor is seeking. As an advisor/Analyst at PwC, submit a report addressing the following questions that the investor has asked your firm for advice. The investor is from a non-accounting background.

Discuss the financial performance, financial position and cash flow of these two companies:

a. By referring to balance sheet, income statement, cash flow statement, and note.

b. Calculate and compare key financial ratios relating to Liquidity, Leverage, Efficiency, Profitability, and Market Value. [Hint: use at least four ratios in each catergory].

c. What is the Market Capitalisation of each of these companies? Discuss possible reasons why their net book value differs from Market Capitalisation.

Reference no: EM133161237

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