Business and Financial Analysis Assignment Answers
- Topic: Business and Financial Analysis Assignment
- Document Type: Assignment Help (any type)
- Words Count: 3000
- Citation/Referencing Style: Harvard Reference Type
- Academic Standard Level: Masters
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In this assessment, you are asked to conduct a financial analysis of a listed company of your choice. It must meet the following criteria:
- It should be listed on a stock exchange.
- It should NOT be a financial/ banking company because finance companies’ financial statements are very different than other service/ manufacturing, etc.
- Must be a recent annual report, e.,2020.
- 2-3 students may be working on a same company, but everyone is required to submit their own report, which is written individually and NOT as a group.
- The report must be available in English language.
- Should be able to identify a close competitor.
Task 1: Finding financial information
You are required to find the appropriate financial information in chosen financial statements and its competitor. Calculate the following ratios for both the financial years 2019 and 2020. (LO1, LO2)
- return on capital employed
- return on sales
- asset utilisation ratio
- gross profit margin
- current ratio and quick ratio
- interest cover
- stock days
- current trade receivables days*
- current trade payables days*
- return on equity.
- Common Size Analysis
- Du-Pont analysis
Show all steps needed to calculate your results, including ratio definition and input values.
Task 2: Financial Analysis
Conduct a financial analysis of the chosen companies using the ratios calculated in Task 1 and the additional information provided in the annual reports of the two companies.
Describe what you observe about main company’s performance as well as the performance of its competitors. Explain possible causes for differences in performance and discuss implications for the chosen company.
In your analysis, you should also discuss whether, according to their financial performance, the chosen company should be concerned about its competitor.
Your analysis should not be longer than 2,000 words, excluding bibliography.
If you use information that is not included in the financial statements but elsewhere in the company’s annual report (e.g., notes) or in external sources, please cite the exact location and source of this information. (LO3, LO4)
Also Checkout: Finance Assignment Sample
Guidelines for the assessment
In your answer, you will work on 2 annual reports – one is the annual report of the company and second of its competitors. The notes to the financial statements will also be relevant.
You should be able to answer this question relying on the financial information provided in the chosen company’s annual reports. This is a real company so you may want to look at the company’s website or those of its competitors, but this is not required.
If you make any assumptions, explain them as briefly as you can.
Before answering this question, review the financial analysis and ratios studied in the course. Then make a list of the individual data items that you will need to locate. If that information comes from sources other than the financial statements, you should provide details of these additional sources and your reasons for using them.
*Note: it is suggested that you use current trade receivables and current trade payables to calculate trade receivables days and trade payables days ratios – see notes in the annual reports rather than trade and ‘other’ receivables, and trade and ‘other’ payables to be able to compare like with like.
This assessment is not just testing your ability to calculate the different ratios; it is also assessing your understanding of how to source relevant financial information and make considered decisions about whether and how to deploy it. This is reflected in the following allocation of marks for this question:
- 33 marks for the calculations
- 57 marks for the analysis of the financial performance of the company, and its competitor.
- 10 marks to discuss whether the chosen company should be concerned about its competitors.
Remember to show all your calculations in detail. Tables and relevant data from spreadsheets should be included within the body of the analysis.
On satisfactory completion of the unit you will be able to:
|LO1||Critically analyse rules and principles in the international accounting standards and financial regulations and core values in business that led to competitive advantage.|
|LO2||Synthesize and creatively apply complex knowledge in the sphere of business and financial analysis with a view to corporate evaluation.|
|LO3||Synthesize business and accounting data, and financial information to make and critically assess investment decisions.|
|LO4||Discuss the linkage between current theory and leading-edge practice and organise appropriate evidence and critical reasoning to produce a balanced conclusion in business and financial analysis.|