Reference no: EM13301253
YEAR ENDED 30 JUNE 2011 financial and annual statements from the NEWCREST MINING LIMITED and NEX METALS EXPLORATION LIMITED corporate websites and answer the following questions on both companies:
a) Critically evaluate short term liquidity using the following ratios:
Current ratio
Quick asset ratio
b)Critically evaluate the profitability using the following ratios:
Return on Owner's Equity
Return on Assets
c)Critically evaluate the financial stability/solvency using the following ratios:
Debt Ratio
Equity ratio
Please note that you are required to interpret and discuss the ratio results and not just calculate them.
Based on the calculations above, make a formal report that has the following structure (show all findings and calculations):
• Title page
• Executive summary
• Table of contents
• Introduction
• Company Profile- NEWCREST MINING LIMITED
• Company Profile0-NEX METALS EXPLORATION LIMITED
• Measurement of short term liquidity for NEWCREST MINING LIMITED and NEX METALS EXPLORATION LIMITED
o Current ratio calculation and interpretations
o Quick asset ratio calculation and interpretations
• Measurement of profitability for NEWCREST MINING LIMITED and NEX METALS EXPLORATION LIMITED
o Return on owner's equity ratio calculation and interpretations
o Return on total asset ratio calculation and interpretations
• Measurement of for NEWCREST MINING LIMITED and NEX METALS EXPLORATION LIMITED
o Debt ratio and calculations
o Equity ratio and calculations
• Recommendations based on your analysis of the above ratios
• Additional information that may be useful for further analysis
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