This assignment task is a written report and analysis of the financial performance of one selected listed company on the ASX in order to provide financial and investment advice to a prospective investor (No restriction to choose one of the company which you used for your individual assignment).
This assignment requires to undertake an examination of a firm’s financial performance based on most recent financial statements of the selected company mainly focusing on
- Liquidity (based on liquidity ratios)
- Capital Structure (based on capital structure ratios)
You are required to obtain the relevant information from chosen company annual reports and company web site. You can access the company web site via www.asx.com.au.
To download the relevant please referee the Company code in ASX (see the following examples)
|Abacus Property Group
|Aspen Group Limited
|AGL Energy Limited
|Woolworths Group Ltd
Note: The above table gives you only examples and you are not asked to choose them for the analysis.
Assignment structure should be as follows:
Title of the assignment
Example: Analysis of ABX Company Financial Performance
Group details and the contribution of each group member
You need to give full details of all the group members in your group including their names and student IDs. Please make sure all the names written in the assignment are matched with the group created in Blackboard.
To ensure that all students participate equitably in the group assignment and that students are responsible for the academic integrity of all components of the assignment. You need to complete the following table which identifies which student/students are responsible for the various sections of the assignment.
The above table needs to be completed and submitted with the assignment as it is a compulsory component required before any grading is undertaken.
CONTENT OF THE ASSIGNMENT
The introduction should briefly explain the purpose of the assignment, the selected company for analysis and the type of analysis.
FINANCIAL PERFORMANCE ANALYSIS OF THE SELECTED COMPANY
- Description of the company
Prepare a brief description of the selected company (when they started, key milestones etc.), outlining the core activities (major business, key products) competitive advantages, and the market in which it operates (in which industry sector they are in ASZX, do they export their products and services or whether they serve only the local market).
Analysis of company net working capital position
Based on balance sheet information and the notes to the financial statements,
- Analyse the working capital position of the company over minimum of past 2 years (composition of current assets and current liabilities, changes in CA and CL, any significant decision about working capital management )
- Calculate the networking capital and give your opinion on the net working capital position of the
Calculation of cost of equity of the firm
Based on the data of just paid dividend (D0), current share price (collect this information from the annual report) and assumption that the company will maintain a constant dividend growth rate of 3% from now on, calculate the cost of equity of your selected company, using constant dividend growth model.
Analysis of company liquidity and capital structure using liquidity and capital structure ratios
Using data from financial statements of your selected company, calculate the following ratios for past 4 years and present them using suitable charts. Discuss the implications of the identified trends for company performance.
- Liquidity ratio (calculate minimum of 2 liquidity ratios over 4 years and analyse them using suitable charts)
- Capital Structure ratio (calculate minimum of 2 capital structure ratios over 4 years and analyse them using suitable charts)
Based on the analysis in section 2, provide brief conclusion on the company financial performance and make a recommendation for prospective investors.
Follow the Holmes reference guideline and give your reference details
Note: You need to show all the calculation in an appendix All the graphs and tables should be correctly label