Schedule of Work
(i) Introduce the company to the reader. It is expected that this will include some company history, the principal activity of the company, products, markets and key financial results.
(ii) Using the annual report and accounts, calculate the percentage movement on the following figures. You should include the following table in your assignment.
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Current Year
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Previous Year
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% Movement
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Revenue
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Operating profit / loss
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Capital employed - show workings if needed
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Total assets
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Net cash generated / used in operating activities
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Number of employees
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Earnings per share
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Total dividend paid per ordinary share
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Year-end share price
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Year-end market capitalisation - using share price above. Show calculation
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(iii) Calculate, for BOTH the current and the previous year, the following ratios that help to highlight the company's performance for the trading period. Show definitions and workings:
- Current ratio
- Operating profit margin
- Trade receivables collection period
- Gearing ratio
- Return on capital employed
(iv) Your best friend is thinking of buying 5,000 shares in the company under examination. Write a report to them analysing the performance of your company over the last trading period. You will be expected to make use of all relevant percentage movements and financial ratios, NOT just the ones you may have calculated above.
You should conclude the report with your advice on whether or not you think your friend should make the investment.
(v) The report should be word processed (Arial font size 12) and well presented. Referencing and bibliographies should use the APA 6th System (name and date). For detail of the APA 6th System refer to Learning Information Services (i.e. the Library's)