Analyzing a Bank's Financial Statements Assignment

Assignment Task

Introduction

In this assessment, you are asked to conduct a financial analysis of a listed company of your choice. 

1. It should be listed on a stock exchange.

2. It should NOT be a financial/ banking company because finance companies’ financial statements are very different than other service/ manufacturing, etc.

3. Must be a recent annual report, i.e.,2020.

4. 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.

5. The report must be available in English language.

6. 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)

1. Return on capital employed

2. Return on sales

3. Asset utilisation ratio

4. Gross profit margin

5. Current ratio and quick ratio

6. Gearing

7. Interest cover

8. Stock days

9. Current trade receivables days

10. Current trade payables days

11. Return on equity.

12. Common Size Analysis

13. Du-Pont analysis

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 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. 

This Accounting and Finance has been solved by our PHD Experts at My Uni Paper.