Describe briefly the sector of the construction industry that you have selected. Produce a representative average sector performance from the ratios calculated in (a) for the three selected companies.

Risk and financial Management/ Construction

Using internet searches, obtain the financial reports from THREE quoted companies that are competitors in the same sector of the construction industry. Examples of sectors include: domestic housing, commercial offices, transport infrastructure such as bridges etc. The reports should all refer to the same or overlapping periods of time and should be the overall (that is, consolidated) group accounts. The accounts should not be older than a year ending in 2019. Include the summary financial data obtained in an appendix, and present the assignment as a report. Ensure that the
following questions are answered in your report:

a) Choose FIVE appropriate Financial Analysis ratios that describe profitability, return on capital and gearing (i.e. you may choose more than one ratio for some of these categories) and perform an analysis on the selected company accounts. Present your answers clearly in table form, and explain briefly how each company has performed based on the ratios. 50%

b) Describe briefly the sector of the construction industry that you have selected. Produce a representative average sector performance from the ratios calculated in (a) for the three selected companies. Comment on how representative this average might be for the sector and whether your ratios reflect the reported performance of this sector. Use internet research to provide supporting comments for your assessment. 30%

c) Choose one more quoted company from another sector of the construction industry and calculate the same ratios as in (i) for this company. Comment on any differences between your average in (ii) and this additional company.