Assignment Brief: In this group assignment, you are required to conduct a detailed financial performance analysis of HSBC, focusing on various accounting ratios over the past five years. Your report should assess HSBC’s profitability, efficiency, liquidity, debt, and market vulnerability ratios and explore limitations associated with these ratios. Provide recommendations based on your findings and address any other financial factors that contribute to HSBC’s overall financial performance. Assignment Tasks: 1. Introduction and Company Background Provide an introduction to the report and an overview of HSBC, including its position in the financial industry and significant recent financial highlights. 2. Ratio Calculation and Analysis • Profitability Ratios: Calculate and analyze key profitability ratios (e.g., net profit margin, gross profit margin) for the last five years. • Asset Efficiency Ratios: Assess efficiency ratios, including inventory and receivable periods. • Liquidity Ratios: Evaluate HSBC’s ability to meet its short-term obligations through ratios such as the current and acid-test ratios. • Debt Ratios: Analyze debt ratios, including interest coverage and gearing ratios. • Market Vulnerability Ratios: Calculate and discuss market vulnerability ratios such as basic and diluted EPS. 3. Trend Analysis Interpret the trend of each ratio over the five-year period and assess HSBC’s performance based on these trends. 4. Limitations of Selected Ratios Discuss the limitations of each ratio used in the analysis and how these limitations might affect the interpretation of HSBC’s financial performance. 5. Other Financial Factors and Recommendations Identify other financial factors affecting HSBC’s performance (e.g., size, age, corporate governance) and provide recommendations for improvement based on your findings. 6. Conclusion Summarize the key findings from the ratio analysis and provide a concise overview of HSBC’s financial health. Formatting and Submission Guidelines: • Word Count: 2,000 – 2,500 words • Format: 12-point font, Times New Roman, double-spaced • Referencing: APA style • Submission: [University Submission Portal] by the due date Learning Outcomes Assessed: • Analyze financial performance using ratio analysis. • Identify limitations of accounting ratios in evaluating company performance. • Apply financial management principles to recommend strategies for improving financial health.