This document outlines the requirements for an investments research project involving analysis of a public company. It will be completed in groups of 3-4 students. The project consists of a written report and presentation. The report involves 3 milestones: 1) describing the company's industry, ownership, competitors, and background; 2) calculating financial ratios over 3 years and comparing to competitors and benchmarks; 3) analyzing and interpreting the ratios to assess the company's financial position and future outlook. Students must select a company, inform the instructor, research the company's financials, and compile the milestones into a formal written report with references.

1. INVESTMENTS FINA 4313
Fall Semester, 2011
Investments Research Project
This is a group task (three or four students per group) and
comprises of a research/written report(85%) and a group
presentation (15%) The report is divided in three milestones;
the due date for these milestones will be set out by your
instructor. The report is
to be submitted BEFORE 4pm on 3rd December 2011.
Your starting point for this project is:
1. Your group has to select a public company listed on the New
York Stock Exchange ( or Saudi Arabia)
Note:You can select from wide range of companies such as
pharmaceutical company, telecommunications, Retail,
Automobile etc But you should not select a banking or
insurance company.
2. You have to inform your instructor regarding your selection
of the company.
3. When selecting a company, you should be aware of the
industry your company operates in. Also identify the other
companies which are in competition with your company.
4. Collect media articles and any news of interest about your
company.
5. Acquaint yourself with the company as much as possible,

2. sound knowledge and understanding about the company’s
financial structure will help you in successfully handling this
project.
6. Obtain five consecutive annual reports (starting from the
latest and four previous years’) of your company.
7. Look out for company’s website. Browse through company’s
website and identify relevant information.
8. Reports without referencing and bibliography will NOT be
accepted OR marked by your instructor.
Milestone 1 (15 %)
What type of industry does it operate in, ownership structure of
the company: wholly American (Kingdom of Saudi Arabian)
owned or partly foreign owned, main business competitors, Any
interesting past or current information related to the financial
aspect of your company.
Identify and explain the short term and long term sources of
finance for the company. What are the sources of revenue?
(Look out for the financial statements such as balance sheet,
income statement and statement of cash flows)
Milestone 2 “Calculation and compilation of Ratios” (30 %)
In this part you are required to:
1. Calculate the following ratios of your company for three

3. consecutive years:
- Current ratio and liquid ratio
- Any two ratios
- Any two ratios
tios- Any two Ratios
- Any two ratios
2. Having identified the major competitors of your company,
chose one firm which is in direct/close competition to your
company. Calculate the above ratios for this firm as well.
3. Research and find industry benchmark ratios.
http://www.anz.com/aus/Small-Business/Tools-Forms-And-
Guides/Benchmark-Your-Business/Industry-
Analyser/default.asp
Milestone 3 “Analysis and Interpretation” (30 %)
As you all must be aware that mere calculation of ratio in itself
is a meaningless exercise, it is the interpretation and analysis of
significant results indicated by these ratios that are of real
value.
Interpretation can be achieved by
i.comparing ratios over a period of time or
ii.comparing ratios of your company with that of other firms in
the same industry or iii.comparing with the industry
benchmarks.
Comparison:

4. You are required to:
of previous two years.
and analyze the ratios of the company with the
ratios of the direct/close competitor firm.
of industry benchmarks.
Interpretation: In the light of these ratios and comparisons you
have to document your comments regarding:
commitments; Are there any short term financial problems faced
by your company?
are utilized; What idea do you get about the operational
efficiency of the business?
assets employed and shareholder investment
rs’ investments are
performing in terms of returns and maturity.
Finally provide the future financial outlook of your company in
terms of profitability and shareholder’s returns.
Compilation of all the three milestones is required in the form
of a Business Report at this stage (Marks 10%):
The format of the report should be:

5. List of Resources for the project: Suggestive, not exhaustive list
· Official website of the Capital Market Authority
· http://www.tadawul.com.sa: Tadawul official website
· Tadawul: Tadawul forums website
· Saudi Virtual Tadawul: Virtual Tadawul site that simulate
Saudi Tadawul (the easy way to learn Saudi Stocks)
-Business/Tools-Forms-And-
Guides/Benchmark-Your-Business/Industry-
Analyser/default.asp
· Company Website, Annual Reports, Newspaper and Media
Articles
When you complete the assignment you should but a graphs and
charts for analysis ..