Advice for best approach to 1) Compare each company with its alike ones in the same sub-sector. 2) Compare each sub-sector with the rest of other sub-sectors.

Hi,

I've been assigned a task to give a conclusion or recommendations for two things:

  1. Which company has a better performance compared to its like companies in the same sub-sector?
  2. For each sub-sector, which sub-sector as a whole has a better performance?

The real situation is as follows:

  • The industry is telecom.
  • The authority issues licenses to service providers, which in turn they are providing the service to the end user.
  • The industry has several sub-sectors, like: 
    • Mobile operators.
    • Sattalitte services.
    • several other sub-sectors.
  • Each sub-sector includes several companies.

The reasons for that task are:

  1. The authority would like to know which sub-sector is more profitable, to provide more new licenses for that sub-sector, or even add a new related sub-sector.
  2. Which companies are not performed well and might close in the near 1 to 3 future years?

What I've done so far:

I've built a model with Excel that calculates all financial ratios for each company individually and made it under categories like profitability, ...etc.

But top management is not satisfied with these Excel files, and keeps asking, so what!? what do these numbers mean?

And I keep replying that you do not understand the meaning of the numbers, that is your problem and not mine, as this is the financial analysis by the book to the letter.

Then I thought that it could be my problem and not their problem, so I thought to ask about it here.

So after calculating all ratios, what else should I do to give that conclusion, recommendations, or insights?

Thanks

 

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