How calculation of ratios will help company decision making


Assignment:

Word limit: 1300 words

Required:

1. Select and investigate any one of the following company's two years financial reports (2015 and 2016):

• Qantas Airways Ltd

• Fortescue Metals Group Ltd

• Telstra Corporation Ltd

• Australia and New Zealand Banking Group Ltd

• Healthscope Ltd

2. The information required to write the business report is found in the company's Annual Report, which is available online. Information from any other source including the company's website can also be used. All the above companies are listed on the Australian Stock Exchange (ASX).

3. The report should include the following:

 Cover page

 Executive Summary

 Table of contents

 description of the company's business activities.

 Calculations of one ratio from each of two of the following ratio categories:

 Profitability

 Asset efficiency

 Liquidity

 Capital structure

You should calculate ratios for two years (total four calculations).

Market performance - please present Earnings Per Share (EPS) ratio figures that are provided in company's annual reports; and refer to them in your analysis.

An explanation of each ratio giving details of what the ratio means and how the calculation and comparison of each ratio will help the company's decision making.

An analysis of your results for each ratio over the two years and what each ratio indicates about the financial performance of the company.

Advice to potential investors about investing in this particular company with reasons based on your ratio calculations.

Conclusion and recommendation

Appendix (all the financial statements that were used in preparing the report)

References in APA style (can be found in MIT library referencing).

Solution Preview :

Prepared by a verified Expert
Financial Accounting: How calculation of ratios will help company decision making
Reference No:- TGS02129268

Now Priced at $30 (50% Discount)

Recommended (96%)

Rated (4.8/5)