Ranking firms from the viewpoints of a credit rating agency and a stock market analyst
Guidelines:
Select any two firms of your choice (two firms may be taken from any market; however, guidelines on how to download data relate to Australian market)
Download at least five years’ financial statements (yearly data) and conduct the following analyses:
(1) Use ratios in which credit rating agencies would be most interested in and rank the firms in terms of their credit worthiness.
(2) Use ratios in which a stock market analyst would be most interested in and rank the firms in terms of their attractiveness for investment purpose.
You need to analyse the ratios in detail to assign appropriate ranking of your selected firms. The firm that exhibits better creditworthiness should be ranked 1 followed by the second firm. Similarly, the firm that is relatively more attractive from a stock market analyst’s point of view should rank 1 followed by the second firm.
