Financial Analysis

Task Background:
Assessment Task requires you to do some financial analysis. In Strategic
Management we use financial data to demonstrate quantitative numeracy skills.
This assessment is based on a comparison of two fictional car companies: “GOGO
MOTOR COMPANY” and “SWIFTY MOTOR COMPANY.”
1- GOGO MOTOR COMPANY
GOGO Motors is one of the largest automotive manufacturers in the world. Its
products include cars, crossovers, and sports utility vehicles (SUVs), trucks and
vans, hybrids and EVS, commercial trucks, fleet vehicles, vehicle accessories, and
after sales vehicle parts and other related products. The company manufactures
and distributes vehicles across the world. The company’s major automotive
brands include TIGER and LEOPARD.
2- SWIFTY MOTOR COMPANY
SWIFTY Motors is a large manufacturer of vehicles engaged in the design,
development, production, and marketing of cars, trucks, and automobile parts.
The company operates in 4 business segments: North America, Europe, South
America and international. SWIFTY motors operates in 23 countries around the
world. It also provides financial services through the SWIFTY financial company.
The company also has significant equity stakes in car companies China and Japan.
Consult GOGO’s and SWIFTY’s financial information and complete the task set out
below.
GOGO’s financials are found in the following URL: GOGO MOTORS
SWIFTY’s financials are found in the following URL: SWIFTY MOTORS
Chapter: (sources are useful they might help)
Explanation of the ratios
Jagels, M.G. 2006. Ratio Analysis. In Hospitality Management Accounting (9th
ed.). USA: Wiley, Chapter 4.
Useful URLs:

https://studyfinance.com/inventory-to-working-capital-ratio/
https://studyfinance.com/long-term-debt-to-equity-ratio/
Task Purpose:
The purpose of Assessment Task is to undertake a strategic financial analysis
demonstrating quantitative literacy.
Quantitative literacy will be assessed within the following sub-tasks:
1) Creation of a numeric dataset (consult the Circuit city questions & Circuit city
answers which were examples given to you as a guide).
2) Interpretation of that numeric dataset.
3) Creation of analytical tables and diagrams showing calculations with the
dataset as a basis;
4) Extrapolation and explanation of outcomes of the dataset and table.
5) Conclusion: discussing which company is better suited for investment
& strategic implications.
Case Background and Requirements:
You are a consultant tasked with providing advice to a client (a private investor)
who wishes to invest (purchase shares) in GOGO MOTORS COMPANY.
Your client wants their investment to achieve above average returns.
Your task is to complete a detailed financial (ratio) analysis of the GOGO MOTORS
COMPANY and SWIFTY MOTORS COMPANY showing trends over the last 3 years.
Thus, the analysis for this task spans three years.
Compare GOGO’s ratios with SWIFTY’s ratios.
Requirements: (Here is the requirements)
Provide a structured 1200-word report for your client demonstrating the
following:
1. Introduce the company and industry (include a description of the
purpose of the report)
2. Main body – Provide tables and diagrams containing the profitability,
liquidity and leverage ratios for GOGO MOTOR COMPANY and its major
competitor SWIFTY MOTOR COMPANY for a period spanning 3 years.
3. Main body – Provide a written explanation of each ratio and compare the
overall financials of both companies. Assume here that your examiner is
not an accountant or data analyst;
4. Conclude the portfolio by discussing which one of the two car companies
is better suited for investment (buying shares) and discuss the strategic
implications for GOGO MOTORS COMPANY.
5. Provide a list of references.
Structure:
You are to provide a response to this problem in approximately 1200 words (+/-
10%):
An introduction, main body, and conclusion must be provided.
Diagrams, calculations, and tables are essential.
Academic references are required
You should assume the examiner is NOT an accountant or a data-analyst and must
provide written explanations for each ratio, diagram, table and any models