Financial Statement Analysis and Report-
Objectives of the task-
- Apply theory in practice
- Conduct analysis of financial statement - to look beyond the numbers
- Experience formal report writing and skills in interpreting financial statements.
The task-
- Select two companies in the same industry listed on the Australian Stock Market.
- Your analysis will be based on the latest available three years annual reports (full year's report) which include the financial statements (Balance sheet, Income statement, and Statement of cash flows) and explanatory notes of your selected companies.
- You must inform your lecturer during the lecture, the names of the two companies and the industry.
- No two groups can work on the same two companies (if two groups pick the same two companies the lecturer will use a first come first served basis only to permit one group to work on the two companies)
You will need to collect data for the latest three years for the selected companies from the financial statements and other relevant information and conduct:
a) Horizontal analysis of the Income Statement and Cash Flow Statement
b) Vertical analysis of the Income Statement and Balance Sheet
c) Ratio analysis (using two ratios for each of the five ratio categories (i.e., two ratios for Profitability; two ratios for Efficiency, two ratios for liquidity, two ratios for Financial gearing, and two ratios for Investment analysis (refer Pages257 to 280 of the text book)
Your analysis should-
- include relevant data to help a prospective investor decide in which of the two companies to invest all his life-time savings.
- include an in-depth evaluation of the company's overall outlook for the future should be included.
Report-
- Your presentation should take the form of a formal report.
- Your report must be printed and your discussion should be 3000 words (maximum limit).
- Your calculations must be included in an appendix and properly quoted/referenced in your report
- Whenever necessary your report must be properly referenced.
- Your report should be structured along the following lines:
- executive summary
- information about the company & industry and other relevant background information
- financial statement analysis - (a) horizontal, (b) vertical and (c)ratios
- analysis of the pros and cons of investing in the company
- summary, conclusion and recommendation
- appendices (calculations showing formulas used and the company financial data)
- bibliography
- Group leader to submit the group report via Turnitin on Blackboard or before the due date.
Note: Based on the three years annual report(attached), mainly analysis on comprehensive income statement and cash flow, Sample Essay Attached.
Company chosen: ORG
In essay, please insert relevant tables or analysis graphs with excel format.
Assignment link - https://www.dropbox.com/s/pewqshz7oylv26w/Assignment.rar?dl=0
Words: 1200
Harvard Referencing
Number of Ref: above 6 or 7 (including annual reports).