Build me a financial statement

• Consist of two parts: a written report, and a PowerPoint. • Select a GCC-based public company along with its main competitor. Both companies must be listed on the same stock exchange. 1. Emirates Telecommunication 2. Saudi Telecommunication • Download the financial statements for both your companies for the following three financial years: 2020, 2019, and 2018. • Relying on both external research and the knowledge we have learnt in class, write a report for both your company and its competitor, covering (but not limited to) the following points: 1. Provide a brief overview of each company’s products/services and activities. 2. Discuss the types of business risk each company is exposed to and explain how. Does the current situation require any action from the companies’ management? 3. Discuss the types of operating risk each company is exposed to and explain how. Does the current situation require any action from the companies’ management? 4. Discuss the types of financial risk each company is exposed to and explain how. Does the current situation require any action from the companies’ management? Any data and/or part(s) of the financial statements used to calculate the financial metrics below must be presented in the Appendix at the end of the report. For each of the following financial years (2020, 2019, and 2018): 5. Calculate the minimum level of dollar sales that each firm should reach in order to reach the operating break-even. Provide an explanation for your findings. Comment on the trend over time. 6. Discuss why it is important to consider break-even at the EBIT level, as compared to break-even at the EBITDA, EBT or Net Income level. 7. Estimate each company’s level of operating leverage. Provide an explanation for your findings. Comment on the trend over time. 8. Determine each company’s level of financial leverage. Provide an explanation for your findings. Comment on the trend over time. 9. Compute each company’s level of combined leverage. Provide an explanation for your findings. Comment on the trend over time. 10. Justify change in each company’s share price over the last three financial years. Comment on the trend over time and provide reasoning for any changes. 11. What is your outlook on the performance of these two companies in the future? Provide reasoning. 12. If you had to recommend only one of the two stocks to invest in, explain which one you would choose and why. • Support your report with formulas and calculations, wherever possible. The list of points to cover in your report above is not exhaustive, so you may include more discussion points in your project.. • Your task is to write a report of 3,000 words (±10%). If you wish to include any information that takes you above the prescribed word limit, you can place it into the Appendix at the end of the report. Include any tables, graphs, attachments in the Appendices section. The last section of your report is References. • Important! Your report should include at least 5 academic references (i.e. scientific journals, textbooks, etc.) and as many non-academic references (i.e. websites, magazines, brochures, interviews, etc.) as you wish to use. The reference list must be presented in an alphabetical order and placed on the last page of the report.