Analyse and discuss the financial performance

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Reference no: EM131986415 , Length: word count:2000

Financial Accounting Assignment -

Task: This assessment is an individual task in which the student is required to write a report on a topic included in this paper.

PURPOSE - Financial Statement Analysis - To calculate and analyse financial ratios using actual reported data.

REQUIRED - Given the financial statements and the additional information, analyse and discuss the financial performance and position of Specialty Fashion Group Limited. You should refer to the notes to the financial statements and the Director's Report for further details and clarifications of changes in the financial statements. (You may find the Full Year Results CEO & CFO Presentation useful for this assignment).

Your analysis should be supported by profitability, liquidity, gearing and other appropriate ratios from Chapter 18 of the prescribed textbook.

Calculate and analyse financial ratios (percentage and ratio analysis)

Use the 2017, 2016 and 2015 published annual reports to obtain the financial statement figures needed to calculate the ratios (where there are consolidated accounts, use the consolidated amounts). In addition, students are strongly advised to:

  • perform horizontal and vertical analyses of the Statements of Financial Position (Balance Sheets) and Statements of Profit or Loss (Income Statements) for the company
  • read all parts of the Annual Reports

Instructions - Your report should calculate and analyse the following ratios, in clearly identified separate sections:

Profitability

  • Rate of return on net sales
  • Rate of return on total assets
  • Asset turnover
  • Rate of return on ordinary shareholders' equity
  • Earnings per share (given in the Annual Report)

Liquidity

  • Working capital
  • Current ratio and Acid-test ratio
  • Inventory turnover and Days in inventory
  • Gross profit percentage
  • Accounts receivable turnover
  • Days' sales in receivables

Gearing

  • Debt ratio
  • Debt to equity ratio
  • Times interest earned ratio

Your analysis should include:

Year-to-year (2017 and 2016; 2016 and 2015) comparisons (horizontal analysis). Use the Director's Report and the Notes to the Accounts to further justify your answer.

The components of each ratio should be investigated to determine the significant or determining factors in any change to the ratio.

These significant factors should then be investigated to determine (to the extent possible) the cause and sustainability of their change (refer to example below).

Attachment:- Assignment File.rar

Reference no: EM131986415

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Reviews

len1986415

5/17/2018 7:36:51 AM

Length: This report should not exceed 2,000 words (excluding Appendices). Task: This assessment is an individual task in which the student is required to write a report on a topic included in this paper. Total Marks: 20 marks (20% of total assessment). Submission: Hard copy submission in the class and Online submission through Blackboard.

len1986415

5/17/2018 7:36:45 AM

Submission Guidelines: Assignments must be submitted by the due date. Students should include the cover page designed by the University of Newcastle with the assignment. All assignments must be submitted online and hardcopy in the class. Submissions via email will not be accepted. Assignment must be typed, and submission file should be in word. Each page of the assignment should be numbered. Whenever necessary assignment must be properly referenced, and referencing should follow American Psychological Association (APA) 6th edition style.

len1986415

5/17/2018 7:36:40 AM

Extensions of Submission Date: All requests for extensions must be submitted through adverse circumstances application before the assignment submission due date. Late Submission: The mark for an assessment item submitted after the designated time on the due date, without an approved extension of time, will be reduced by 10% of the possible maximum mark for that assignment item for each day or part day that the assessment item is late. Note that this applies equally to week and weekend days. Length: This report should not exceed 2,000 words (excluding Appendices).

len1986415

5/17/2018 7:36:34 AM

Each ratio analysis will be marked on the correctness of the comparisons and the identification of the determining factors. The depth and correctness of analysis of the factors will be the primary criteria for grade differentials in this assignment. The determining factors need not be confined to the annual reports, but they must be relevant to your analysis. A marking rubric is included in this assessment for your information. The marking rubric details what is required in the report under each section. Note that this assessment will be discussed further in class.

len1986415

5/17/2018 7:36:29 AM

Summary is excellent: all major points are restated clearly and concisely, and no minor details and opinions appear. Excellent summary which restates main purpose, key points, facts, and figures. Summary is highly organised and invites readers to read more. Information flows in a logical order creating clarity and interest; is tailored nicely toward executive audience. Executives can make decisions and take appropriate action. Introduction is excellent: quick to engage a professional audience. Data is appropriate and very relevant; presentation and analysis of data is thorough, deep and sophisticated. Visual supplements are included and provide valuable information that is clear, professionally presented, and insightful.

len1986415

5/17/2018 7:36:24 AM

Conclusions and recommendations are pertinent, realistic, evidence-based, and detailed. Continuity of argument and evidence is very professional. All required sections are effectively structured and organised. Free of formatting errors. No grammatical errors exist. Report is free of punctuation, spelling, or capitalization errors. Sentences are complex and sophisticated. Style is concise and professional. The report has clearly been edited and proofread numerous times. The appendices added are useful tools for the professional reader.

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