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Financial And commercial Literacy Accounting And Finance Assignment Help
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Title: Financial and commercial literacy
Word count: 900 words
Format/ assessment layout:
- Cover Page
- Table of Contents Introduction
- Body
- Recommendations
- Reference List APA 7th edition referencing style.
- Excel template P&L, Balance Sheet, and Ratio analysis
Assessment instructions
Businesses of all kinds are required to provide financial statements as part of their annual reports. Although university/college graduates are not expected to understand all components of the annual report, it is important that students understand the key financial statements and how they can inform a variety of stakeholders of the state of the business.
Your task is to conduct financial statement analysis on two (2) companies as nominated by the lecturer. Using the annual reports for each company (link located in Moodle Assessment 2) You are required to complete the excel template analysing the 2 companies and write a 900-word report answering the questions below.
Your report must include:
- Table of Contents.
- Introduction: An introduction that explains what each company does. i.e., What does each business do to earn their revenue? In this section explain what each business’ core activity is, where are they located, etc., (200 words, the information is contained in the respective annual reports)
- Body: An analysis of each of the 2 nominated companies. Answering the following 4 questions and sub-questions (600 words in total).
- 1. Net Profit Margin. Explain what ‘Net Profit Margin’ represents in these 2 companies. Compare the Net Profit Margin for the 2 companies. Which company has a better Net Profit Margin, and why is it better? What was the reason for Woolworths’ jump in profit between 2021 and 2022.
- 2. Inventory Turnover Ratio. Explain what ‘Inventory Turnover Ratio’ means in relation to these 2 companies. Compare the Inventory Turnover Ratio for the 2 companies. Which company has a better Inventory Turnover Ratio. Is it better to have a higher or lower inventory turnover ratio and why?
- 3. Explain what the Average Collection period means in relation to these 2 companies? Which company has the better Average Collection period, and why is it important to monitor and control the Average Collection period.
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• 4. Debt to Equity Ratio. Explain what ‘Debt to Equity Ratio’ is in the context of these 2 companies. Compare the ‘Debt to Equity’ ratio for the 2 companies. What is the implication of a high ‘Debt to Equity’ ratio on Net profit?
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• You are required to upload 2 files, the completed excel spreadsheet and the 900-word report in pdf format. |
Investigating companies
Company 1: Woolworths
Woolworths Group
Consolidated Statement of Profit and Loss, including balance sheets is found on p96.
Woolworths Group
Consolidated Statement of Financial Position. p98.
Company 2: Coles
Coles Group
Balance sheet p87.
Coles Group
Income Statement p86.
You are required to upload 2 files, the completed excel spreadsheets for both company pdf format.
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