{"id":3379,"date":"2018-07-16T23:08:50","date_gmt":"2018-07-16T13:08:50","guid":{"rendered":"https:\/\/casestudyhelp.com\/sample-questions\/?p=3379"},"modified":"2018-07-16T23:08:50","modified_gmt":"2018-07-16T13:08:50","slug":"financial-ratio-anaysis","status":"publish","type":"post","link":"https:\/\/casestudyhelp.com\/sample-questions\/financial-ratio-anaysis\/","title":{"rendered":"Financial Ratio Anaysis"},"content":{"rendered":"<p><strong>HARVARD REFERENCING<\/strong><\/p>\n<p>Ensure sourced information from books, websites, publications, interviews, and others include IN TEXT CITATIONS within the body of the report.<\/p>\n<p>Ensure that corresponding references of the in-text citations are stated at the end of the report as the REFERENCE LIST in alphabetical order<\/p>\n<p><strong>Assignment Structure:<\/strong><\/p>\n<p>Standard Cover Page<\/p>\n<ul>\n<li>Table of Contents\/Tables &amp; Figures\/Abbreviations<\/li>\n<li>1.0 \u00a0\u00a0Introduction<\/li>\n<li>2.0 Background of the selected company<\/li>\n<li>3.0 Company\u2019s market position in the industry<\/li>\n<li>4.0 Analysis of financial performance of the companies<\/li>\n<li>5.0 Identification of strategic and operational issues and<\/li>\n<\/ul>\n<p><strong>Recommendations:\u00a0<\/strong><\/p>\n<p>7.0 Limitation of analysis<\/p>\n<ul>\n<li>References<\/li>\n<li>Appendix<\/li>\n<\/ul>\n<p><strong>Marking Criteria:<\/strong><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li>Research-informed literature (10%):<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p>Sourcing quality information and inserting your references for defining key terms\/concepts\/models. Number of credible literature, Range of sources, In-text referencing and Harvard referencing<\/p>\n<ul>\n<li>Knowledge &amp; Understanding of Subject (10%) 300 words:<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<ol>\n<li>a) Background of the selected company<\/li>\n<li>b) Relative market position Analysis (50%) 2100 words a) Background to ratio analysis<\/li>\n<\/ol>\n<p>b)Profitability analysis c)Liquidity analysis d)Efficiency analysis e)Solvency analysis f)Investors analysis<\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li>Practical Application &amp; Deployment (20%) 600 words:<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<ol>\n<li>A) Identification of strategic and operational issues<\/li>\n<li>B) Recommendation c) Limitations<\/li>\n<\/ol>\n<p>&nbsp;<\/p>\n<ul>\n<li>Skills for Professional Practice (10%):<\/li>\n<\/ul>\n<p>Structure of writing, flow in the analysis, creativity in presentation, grammar, spelling, spacing and alignment.<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p><strong>\u00a0\u00a0\u00a0 Introduction<\/strong><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li>Purpose of writing<\/li>\n<li>Scope of analysis<\/li>\n<li>Objective<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><strong>2.0 Background of the selected company (200 Words)<\/strong><\/p>\n<p>&nbsp;<\/p>\n<p>&#8211;\u00a0\u00a0\u00a0 Nature of core business<\/p>\n<p>&#8211;\u00a0\u00a0\u00a0 Markets and products \u2013 Diversified?<\/p>\n<p>&#8211;\u00a0\u00a0\u00a0 Future outlook of the industry<\/p>\n<p>&#8211;\u00a0\u00a0\u00a0 Key challenges<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p><strong>Relative Position in the industry (100 words)<\/strong><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li>The market capitalization of the selected company and main competitors ( including company chosen for comparison)<\/li>\n<li>Market share<\/li>\n<li>Contribution to GDP<\/li>\n<li>Number of employees<\/li>\n<li>Analysis of financial performance of the companies ( 2100 words)<\/li>\n<li>Background to ratio analysis<\/li>\n<li>The rationale for selecting the company for comparison<\/li>\n<li>Profitability analysis<\/li>\n<li>Background<\/li>\n<li>Table of profitability ratios (ROCE, GPM, NPM, AT)<\/li>\n<li>Line graph<\/li>\n<li>Interpretation \u2013 comparison of trends, possible reasons (refer to director\u2019s report) and justify with reference to external environment challenges. Your insight on which company is performing better in terms of profitability, i.e., revenue, costs and expenses and usage of assets. Liquidity analysis<\/li>\n<li>Background<\/li>\n<li>Table of liquidity ratios ( current and quick)<\/li>\n<li>Line graph<\/li>\n<li>Interpretation \u2013 comparison of trends, possible reasons. Your insight on which company is performing better concerning liquidity. Any indication of liquidity problems or overcapitalization?<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><strong>What is the industry norm?<\/strong><\/p>\n<ul>\n<li><strong>\u00a0<\/strong>Efficiency analysis<\/li>\n<li>\u00a0Background<\/li>\n<li>\u00a0Table of efficiency ratios (inventory days, receivables days and payable days)<\/li>\n<li>\u00a0 Line graph<\/li>\n<\/ul>\n<p>Interpretation \u2013 comparison of trends, possible reasons. Your insight on which company is performing better concerning managing inventory, receivables, and payables? What is the industry norm?<\/p>\n<p>&nbsp;<\/p>\n<p><strong>Solvency analysis<\/strong><\/p>\n<p>Background<\/p>\n<p>Table of solvency ratios (gearing, debt to equity, interest cover)<\/p>\n<p>Line graph<\/p>\n<p>Interpretation \u2013 comparison of trends, possible reasons (refer to director\u2019s report). Your insight on which company is performing better concerning financial risk management. Refer to the type of debt finance used.<\/p>\n<p>Investor\u2019s analysis<\/p>\n<p>Background<\/p>\n<p>Table of investor\u2019s ratios (EPS, ROE, DPS, DY, PE)<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p><strong>Line graph<\/strong><\/p>\n<p>Interpretation \u2013 comparison of trends,<\/p>\n<p>Possible reasons (refer to director\u2019s report). Your insight on which company is performing better in terms of market performance.<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p><strong>Identification of strategic and operational<\/strong><\/p>\n<p>Issues and recommendations (500 words)<\/p>\n<p>Analysis of revenue\/sales growth (computer and draw chart) \u2013 is there cause for concern \u2013 no increase? Decline?<\/p>\n<ul>\n<li>A steady pattern of no growth or decline could be a strategic issue. Individual insight into possible reasons ( refer to products\/market strategy and external environment challenges)<\/li>\n<li>one-off decline could be due to the operational problem ( marketing tactics, operational mishaps)<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p><strong>Problems in identifying real strategic issues<\/strong><\/p>\n<p>&#8211;\u00a0\u00a0\u00a0 Limited information available?<\/p>\n<p>&#8211;\u00a0\u00a0\u00a0 Industry outlook analysis \u2013 reliable?<\/p>\n<p>&#8211;\u00a0\u00a0\u00a0 SWOT analysis \u2013 reliable?<\/p>\n<p>&#8211;\u00a0\u00a0\u00a0 Assumption and recommendation<\/p>\n<p>&#8211;\u00a0\u00a0\u00a0 Perform gap analysis and devise appropriate strategies (new product development, new market development, and divestment<\/p>\n<p>&nbsp;<\/p>\n<p>Analysis of gearing (financing strategy) \u2013 is there a cause for concern \u2013 increase in gearing level?<\/p>\n<p>A steady rise in gearing level or exceeding 50% could be a strategic issue.<\/p>\n<p>&#8211;\u00a0\u00a0\u00a0 Problems in identifying financial distress situation<\/p>\n<p>&#8211;\u00a0 \u00a0 Limited information available? E.g., debt covenants<\/p>\n<p>&#8211;\u00a0\u00a0\u00a0 Assumptions and recommendation<\/p>\n<p>&#8211;\u00a0\u00a0\u00a0 To issue shares<\/p>\n<p>&#8211;\u00a0\u00a0\u00a0 To revise dividend policy<\/p>\n<p>&nbsp;<\/p>\n<p>Analysis of expenses \u2013 is there a cause for concern \u2013 increase in costs? (Compute and draw chart)<\/p>\n<p>* A steady rise in a particular expenditure could be an operation issue<\/p>\n<p>Problems in identifying reasons for the rising in prices<\/p>\n<p>&#8211;\u00a0\u00a0\u00a0 Limited information available?<\/p>\n<p>&#8211;\u00a0\u00a0\u00a0 blame game?<\/p>\n<p>&#8211;\u00a0\u00a0\u00a0 Assumptions and recommendations<\/p>\n<p>&#8211;\u00a0\u00a0\u00a0 relook at marketing expenses<\/p>\n<p>&#8211;\u00a0\u00a0\u00a0 control utility expenses<\/p>\n<p>&nbsp;<\/p>\n<p>Analysis of efficiency \u2013 is there a cause of concern about inventory, receivables and payables management?<\/p>\n<p>* A steady slow inventory turnover, slow receivables collection could be an operational issue<\/p>\n<p>Problems in identifying reasons for inefficient management<\/p>\n<p>Limited information available?<\/p>\n<p>Assumptions and recommendation<\/p>\n<p>Improving purchasing system<\/p>\n<p>Upgrade collection period (discounts, etc.)<\/p>\n<p>&nbsp;<\/p>\n<p>Analysis of share price movements (chart company share price and stock market index) \u2013 is there a cause for concern?<\/p>\n<p>* A steady decline is a strategic issue<\/p>\n<p>Problems in identifying reasons for the decline in share price<\/p>\n<p>&#8211;\u00a0\u00a0\u00a0 Influence of numerous factors<\/p>\n<p>&#8211;\u00a0\u00a0\u00a0 Factors not within company\u2019s control<\/p>\n<p>&#8211;\u00a0 \u00a0 Assumptions and recommendations<\/p>\n<p>&#8211;\u00a0\u00a0\u00a0 identify needs of stakeholders<\/p>\n<p>&#8211;\u00a0\u00a0\u00a0 is there a strategic drift?<\/p>\n<p>&nbsp;<\/p>\n<p>Limitations analysis (100 words)<\/p>\n<p>Limitations of ratio analysis<\/p>\n<p>&nbsp;<\/p>\n<p><strong>Recommendation<\/strong><\/p>\n<p>&nbsp;<\/p>\n<script type=\"text\/javascript\" charset=\"utf-8\" src=\"http:\/\/w.sharethis.com\/widget\/?wp=6.2.9\"><\/script>","protected":false},"excerpt":{"rendered":"<p>HARVARD REFERENCING Ensure sourced information from books, websites, publications, interviews, and others include IN TEXT CITATIONS within the body of the report. Ensure that corresponding references of the in-text citations are stated at the end of the report as the REFERENCE LIST in alphabetical order Assignment Structure: Standard Cover Page Table of Contents\/Tables &amp; Figures\/Abbreviations [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[865],"tags":[1098,1096,1097],"_links":{"self":[{"href":"https:\/\/casestudyhelp.com\/sample-questions\/wp-json\/wp\/v2\/posts\/3379"}],"collection":[{"href":"https:\/\/casestudyhelp.com\/sample-questions\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/casestudyhelp.com\/sample-questions\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/casestudyhelp.com\/sample-questions\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/casestudyhelp.com\/sample-questions\/wp-json\/wp\/v2\/comments?post=3379"}],"version-history":[{"count":1,"href":"https:\/\/casestudyhelp.com\/sample-questions\/wp-json\/wp\/v2\/posts\/3379\/revisions"}],"predecessor-version":[{"id":3380,"href":"https:\/\/casestudyhelp.com\/sample-questions\/wp-json\/wp\/v2\/posts\/3379\/revisions\/3380"}],"wp:attachment":[{"href":"https:\/\/casestudyhelp.com\/sample-questions\/wp-json\/wp\/v2\/media?parent=3379"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/casestudyhelp.com\/sample-questions\/wp-json\/wp\/v2\/categories?post=3379"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/casestudyhelp.com\/sample-questions\/wp-json\/wp\/v2\/tags?post=3379"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}