Tern Paper: Compare Two Companies
Kazakhstan University of Management,
Economics, and Strategic Research
Bang College of Business
MBA program
Term Paper: Financial analysis of “JSC Shubarkol komir” and “JSC Sat&Company”
Prepared by:
20101675 Kim Jonghon
20091481 Nurtas Kadyrbayev
Instructor: M Mujibul Haque, Ph.D.
Executive Summary
This paper provides an analysis and evaluation of the current and prospective profitability, liquidity and financial stability of JSC “ShubarkolKomir” and JSC “Sat&Company”. Methods of analysis include trend and vertical analyses as well as ratios such as Debt, Current and Quick ratios.
Other calculations include rates of return on Shareholders’ Equity and Total Assets and earnings per share to name a few. All calculations can be found in the appendices.
The report finds the prospects of the company in its current position are not positive. The major areas of weakness require further investigation and remedial action by management. Recommendations discussed include:
- improving the average collection period for accounts receivable·
- improving/increasing inventory turnover·
- reducing prepayments and perhaps increasing inventory levels
The report also investigates the fact that the analysis conducted has limitations. Some of the limitations include: forecasting figures are not provided nature and type of company is not known nor the current economic conditions data limitations as not enough information is provided or enough detail. For example, monthly details not known results are based on past performances not present.
Acknowledgement
We wish to express our sincere gratitude to Dr.M.MujibulHaque, for providing us an opportunity to do our project, and for guidance and encouragement in carrying out this project work. We are heartily thankful that he support from the preliminary to the concluding level enabled us to develop
Economics, and Strategic Research
Bang College of Business
MBA program
Term Paper: Financial analysis of “JSC Shubarkol komir” and “JSC Sat&Company”
Prepared by:
20101675 Kim Jonghon
20091481 Nurtas Kadyrbayev
Instructor: M Mujibul Haque, Ph.D.
Executive Summary
This paper provides an analysis and evaluation of the current and prospective profitability, liquidity and financial stability of JSC “ShubarkolKomir” and JSC “Sat&Company”. Methods of analysis include trend and vertical analyses as well as ratios such as Debt, Current and Quick ratios.
Other calculations include rates of return on Shareholders’ Equity and Total Assets and earnings per share to name a few. All calculations can be found in the appendices.
The report finds the prospects of the company in its current position are not positive. The major areas of weakness require further investigation and remedial action by management. Recommendations discussed include:
- improving the average collection period for accounts receivable·
- improving/increasing inventory turnover·
- reducing prepayments and perhaps increasing inventory levels
The report also investigates the fact that the analysis conducted has limitations. Some of the limitations include: forecasting figures are not provided nature and type of company is not known nor the current economic conditions data limitations as not enough information is provided or enough detail. For example, monthly details not known results are based on past performances not present.
Acknowledgement
We wish to express our sincere gratitude to Dr.M.MujibulHaque, for providing us an opportunity to do our project, and for guidance and encouragement in carrying out this project work. We are heartily thankful that he support from the preliminary to the concluding level enabled us to develop
References: 1. James C. Van Horne “Fundamentals of Financial Management 13th edition”, 2008 2 McGraw Hill; International Edition, 2010. Balance Sheet As at December 31, 2010 Income Statement For the year ended December 31, 2010 Statement of Cash Flows For the year ended December 31, 2010