University : Australian Institute of Business UniLearnO is not sponsored or endorsed by this college or university.
Subject Code : 8006FMGT
Country : Australia
Assignment Task -                 
 


Background 
Financial managers are vital to the survival of any corporation. They generally have input on decisions that directly impact the performance and value of businesses. These decisions are, invariably, related to which projects to pursue (capital budgeting), how to raise funds (capital structure), and how to safeguard the business' daily operations (working capital management). 
In this context, knowing how to interpret financial statements has the same importance to a manager as the ability to understand medical results has to a physician. One of the most important tools in this regard is the financial ratio analysis, whereby information is combined in a way that portrays the status of the company in terms of important aspects (e.g., liquidity, profitability, efficiency, etc.). 
The purpose of this assignment is to provide you with the opportunity to retrieve the real-time financial data from websites of available databases and analyze the financial health of the selected companies using Financial ratio analysis, Trend analysis, DuPont Analysis, and peer comparative analysis. 
Task 
The report will focus on how a company performs as compared to its competitors in the industry. The company's weak and/or strong areas of performance must be identified and recommendations for improvement should be presented. 
To get a good grasp of financial ratio analysis, this assignment asks you to identify a listed company AND its major competitor firm whose financial ratios are either readily available (i.e., through Marketline) or, else, can be calculated through its financial statements (the annual reports are often available in company websites). Obtain (or calculate if not available) the following financial ratios for the selected company from the most recent 5 years: 
1. Liquidity Ratio – Current ratio 
2. Capital structure ratio – Debt ratio 
3. Efficiency ratio – Total asset turnover ratio 
4. Profitability ratio – Net profit margin 

Then, upon collecting observations, conduct the following analyses: 
1. Peer-firm comparison & Trend analysis: Based on the five-year data, compare and elaborate on how the company AND the competitor were performing in terms of their liquidity, capital structure, efficiency and profitability ratios. Discuss the potential reasons (firm-specific, industry-specific, or macroeconomic reasons) behind their difference as well as any explanation for the recent trends. Then provide suggestions for improvement where possible. 
2. DuPont method: Return on equity (ROE) is a good indicator of a firm’s overall performance. How the ROE changed over the past five years for your chosen company and the competitor? Decompose ROEs into profitability, efficiency, and leverage for the five-year period. Which element had the most influence on the ROE? Why? Provide relevant suggestions for improvement. 
3. Market ratios: Calculate or retrieve the current Price-earnings ratio (P/E) of your selected company and the competitor from Yahoo! Finance. Compare and interpret their P/E ratios in light of your findings above, what do you find? If the P/E ratio of the firm is not available, why is it the case? 
4. Conclude & discuss the limitations of the above analysis. What are the current strengths/weaknesses of your chosen company if compared with the competitor? Why? Highlight any areas (and appropriate suggestions) for improvement for your chosen company. 

 

This 8006FMGT - Accounting Assignment has been solved by our Accounting Experts at onlineassignmentbank. Our Assignment Writing Experts are efficient to provide a fresh solution to this question. We are serving more than 10000+Students in Australia, UK & US by helping them to score HD in their academics. Our Experts are well trained to follow all marking rubrics & referencing style.

Be it a used or new solution, the quality of the work submitted by our assignment Experts remains unhampered. You may continue to expect the same or even better quality with the used and new assignment solution files respectively. There’s one thing to be noticed that you could choose one between the two and acquire an HD either way. You could choose a new assignment solution file to get yourself an exclusive, plagiarism (with free Turnitin file), expert quality assignment or order an old solution file that was considered worthy of the highest distinction.

  • Uploaded By : admin
  • Posted on : February 04th, 2019
  • Downloads : 0

Whatsapp Tap to ChatGet instant assistance