FBL5030: Strategic Change & Firm Performance- Value Creation in Business- Report Writing Assignment

Report Writing Assignment:

Task: 1. For the latest 5-year period, analyse any two significant items each from these financial statements of the company you are assigned to: Note: You may need to calculate more than 2 ratios to provide substantive reasons and discussions for the trend captured in a ratio. For example, a steady increase in revenue over a 5-year period can be explained by a rapid expansion of the company. However, revenue per store indicates a negative growth which can be detrimental for the company (see Dick Smith case here). This revenue per store is a ratio that is not readily available and will have to be calculated manually. 2. For the latest 5-year period, analyse 2 ratios each from these categories: Note: Each ratio does not sit in a vacuum. One ratio is interlinked with other ratios of different categories. Therefore, you may need to draw in more than 2 ratios in each category to provide substantive reasons and discussions. Industry average and competitors’ data also form a good platform to put your discussion into perspective. For example, a large difference between current ratio and quick ratio can be explained by inventory build-up. This can be confirmed by looking at inventory turnover (in days) which is longer compared to its competitors or the industry average. In that case, it could mean the company has difficulties to attract customers, which can also explain why it provides a longer credit term (receivable turnover). 3. Present your analyses in a form of a professional report for a manager of a company. Charts and tables are encouraged. Your report should have the following sections (maximum possible marks are in the parentheses). The total possible marks are 35. 3.1. Cover sheet which clearly identify all group members, class/campus, and your teaching lecturer. 3.2. Executive summary. 3.3. Introduction. 3.4. Income statement analysis. 3.5. Balance sheet analysis. 3.6. Cash flow statement analysis. 3.7. Profitability analysis. 3.8. Liquidity analysis. 3.9. Solvency analysis. 3.10. Conclusion. 3.11. There are also 2 marks (maximum) for grammar/spelling/sentence structure; and 2 marks (maximum) for presentation/formatting/word limit.