develop your ability to use basic accounting principles to conduct a financial analysis of a… 1 answer below »

Assignment:
Submit a report showing analysis of a company performance to be used to comment on
its viability for investors’ decision-making.
You will need to choose an annual report and other relevant sources that may support
your opinion/statement, do some financial statement analysis of the company and use
other company (and/or media/ industry data if available) for benchmarks to describe
your company’s situation.
Aim: The major assignment will develop your ability to use basic accounting principles to conduct a
financial analysis of a corporate entity. The assignment will also develop the skills sought by employers: (i)
the ability to convey information in a concise manner, (ii) team-work and (iii) analytical skills.
Basic parts of this assignment:
1. You need to select a publicly listed company; read its annual report and tell about
the performance of the company based on the annual report and other relevant
supporting sources that you can find such as news about the company/company
industry from the media, company’s website, ASX (or any stock exchange market), etc.
The questions in the Assignment Instruction will guide you to do this.
2. You are to do some ratio analysis to report on the company’s performance. In order
to do this, you need to compare current and previous year/s performance and to pick
another company within the same industry sector that you can use as a benchmark. It
can be difficult to find companies that are quite comparable; however at least if they
are in the same industry sector, it is acceptable for this assignment (you should be able
to provide arguments for using it as a benchmark). This Assignment Instruction will
elaborate on the ratio analysis you need to do.
3. The end-result is for you to submit a report about the performance of the company
you have chosen to be used to comment on its viability for investors’ decision-making.
The report highlights and informatively discusses your important findings regarding
the company’s current financial performance – profitability, liquidity, financial
flexibility and operating capability – to support your opinion about its financial
prospects and feasibility.