Analyse the performance of gwa group

Assignment Help Corporate Finance
Reference no: EM131348790

Financial Information for Decision Making Assessment: Company analysis report

Assessment overview

The purpose of this assessment task is for your team to apply your ratio analysis and financial analysis skills to a real company. You will work in teams of three or four to analyse the performance of GWA Group and advise on the near-term prospects of this company.

A report typically begins with a company description intended to assist investors to understand the business, its industry, its motivation and any advantages it has over its competitors. These factors are fundamental to determining whether a company would prove a profitable investment.

Assessment details

This assessment requires your team to analyse the financial information of GWA Group and evaluate the organisation's performance. Based on your analysis of relevant information relating to GWA Group, you are required to prepare a structured report (see recommended structure detailed below) commenting on the profitability, operating efficiency, liquidity and gearing of the company. The profitability and efficiency of the company should be analysed using the required ratios. Firms are accountable for generating profit with the assets employed. In addition, the firm must pay its debts as and when they fall due, therefore you are required to assess the liquidity and gearing of the business using the appropriate ratios'. Use the data from the financial statements in the annual report to calculate the ratios.

Your report should cover a 3-year period commencing 2012 and ending 2014, and should be sufficiently broad in scope to demonstrate your understanding of findings following the analysis. Use your analysis to draw a conclusion about the near-term prospects of this organisation.

Your report must cover the following:

Company and industry background

Briefly profile the company - history, financial highlights, other relevant company details, summary of the nature and current state of the industry in which it operates. This section of work will help contextualise the report in terms of key company information and the industry (and wider) environment in which the firm operates.

Analysis and interpretation of financial performance, position, and market standing

Based on the financial reports and other information, analysis that covers the past three financial years dealing with the following aspects and including consideration of segment information and position in relation to its industry:

  • Profitability
  • Efficiency
  • Liquidity
  • Gearing
  • Cash flows

Include an assessment of other, typically non-financial, information relevant to the company's current state of financial affairs (for instance: global events, industry developments and issues, structural changes to the company such as changes in board composition, mergers or acquisitions, economic factors and any other relevant issues which may potentially impact on the operations of the company).

Manual calculation of specific ratios

The ratios to be manually calculated are: 

  • return on shareholders' equity
  • return on total assets
  • net profit margin
  • inventory turnover
  • settlement period for debtors/accounts receivable
  • settlement period for creditors/accounts payable
  • asset turnover
  • liquidity - current ratio
  • financial gearing - gearing ratio

Please calculate additional ratios as you see fit to enhance and further explain your findings.

Summary and conclusion

Summarise GWA's current financial situation in terms of profitability and efficiency and the company's ability to pay its debt as and when it falls due. Provide recommendations for GWA to improve performance.

Presentation

Marks are allocated for report format and structure, flow, spelling, grammar, punctuation and referencing. Any material used from other sources (particularly reports from banks, investment analysts/brokers etc.) must be acknowledged and correctly referenced.

Suggested report structure

  • Title page
  • Executive summary
  • Introduction and purpose of analysis
  • Company and industry background
  • Company
  • Industry
  • Analysis of financial report data
  • Profitability
  • Efficiency of operations
  • Liquidity - short-term
  • Gearing
  • Assessment of other, relevant information
  • Summary and conclusion
  • Appendices
  • Reference list.

This task is assessing your ability to demonstrate that you meet the critera for the following learning outcomes:

2. Apply accounting tools to prepare financial reports for both external and internal business use.

3. Research and interpret financial information in order to analyse problems and to aid business decision making.

4. Organise and communicate financial information, supported by well-reasoned arguments as appropriate.

5. Work both independently and as a member of a diverse team.

Assessment criteria

1. Presentation including format, layout, grammar, spelling and referencing.

2. Company and industry background that contextualises the report.

3. Analysis and interpretation of financial performance, position, and market standing.

4. Calculation of required ratios.

5. Clear and concise summary and conclusion.

Attachment:- Assignment.rar

Reference no: EM131348790

Questions Cloud

Database administration : You are the new DBA for the XYZ company, you have been asked to research best practices for security policies and procedures. Specifically, what information can you provide regarding controls related to each of the following?
Why the quotation is significant to the larger concerns : In 300 words write a blog post following the steps below carefully: Argue for why the quotation is significant to the larger concerns of the text from which it comes.
Find the compressors isentropic outlet temperature t2 : Find the compressor's isentropic outlet temperature T2 and its isentropic power input per unit mass flow rate (WC/m)s.
Locations that employ windows server : Directory Services word-2-3 pages and a 5 slide power point presentation. You manage 3 locations that employ Windows Server 2012. You want to take measures to reduce the risk of failure. To achieve this, you must consider doing the following:
Analyse the performance of gwa group : ACC10007: Financial Information for Decision Making Assessment: Company analysis report. The purpose of this assessment task is for your team to apply your ratio analysis and financial analysis skills to a real company. You will work in teams of th..
Current implementation and concerns : Parent domain (kris.local) and child domain (corp.kris.local) for the organization's AD infrastructure are running on Server 2008. The following are concerns related to AD: (1) Kris Corporation is concerned about running multiple domain, and (2) a..
Issuing eight-year bonds with coupon rate : Marshall Company is issuing eight-year bonds with a coupon rate of 5.28 percent and semiannual coupon payments. If the current market rate for similar bonds is 7.91 percent. What will be the bond price? If company management wants to raise $1.25 mill..
Visual basic net application : Code the application to display a multiplication table similar to the one shown in Figure 6-31 (Zak, 2016).
Ten-year zero coupon bonds issued : Ten-year zero coupon bonds issued by the U.S. Treasury have a face value of $1,000 and interest is compounded semiannually. If similar bonds in the market yield 9.59 percent, what is the value of these bonds?

Reviews

len1348790

1/10/2017 5:35:12 AM

Excellent format and layout, grammar, spelling and Harvard referencing. No systemic significant errors or intrusions in these areas. Report is polished, cohesive, of industry standard and can be readily skimmed for key concepts and details. Despite multiple authors, it reads as a unified whole. Clear and concise profile of the company including all required information. Excellent contextualisation of the report in terms of its industry. The depth and detail of coverage are entirely appropriate. Excellent analysis of all required ratios. Informed discussion of other relevant information. Clear and concise summary of current financial situation. Clear discussion of results and recommendations, tied explicitly to the analysis provided.

len1348790

1/10/2017 5:35:01 AM

Topic: Financial Information for Decision Making. Under the analysis of financial report data I need Profitability and Efficiency. I also need the cash flow analysis done based on the GWA annual reports starting and ending. So only work on the cash flow analysis and two parts of the financial analysis ratios? Under report structure document.docx only need - Section 5 (profitability 400 words and Efficiency 400 words) and section 6 (cash flow analysis 400 words). Please show all calculation workings as student has requested this, Student has sent title of accounting book, I am trying to get the selected pages if you don’t have it, Cash flow pages located pages 159-219. Profitability and efficiency pages 252-265.

Write a Review

Corporate Finance Questions & Answers

  Impact of the global economic crisis on business environment

This paper reviews the article of ‘the impact of the global economic crisis on the business environment' that is written by Roman & Sargu (2011).

  Explain the short and the long-run effects on real output

Explain the short and the long-run effects on real output, price, and unemployment

  Examine the requirements for measuring assets

Examine the needs for measuring assets at fair value in accounting standards

  Financial analysis report driven by rigorous ratio analysis

Financial analysis report driven by rigorous ratio analysis

  Calculate the value of the merged company

Calculate the value of the merged company, the gains (losses) to each group of shareholders, NPV of the deal under different payment methods. Synergy remains the same regardless of payment method.

  Stock market project

Select five companies for the purpose of tracking the stock market, preparing research on the companies, and preparing company reports.

  Write paper on financial analysis and business analysis

Write paper on financial analysis and business analysis

  Intermediate finance

Presence of the taxes increase or decrease the value of the firm

  Average price-earnings ratio

What is the value per share of the company's stock

  Determine the financial consequences

Show by calculation the net present value for the three alternatives (no education, network design certification, mba). Also, according to NPV suggest which alternative you advise your friend to choose

  Prepare a spread sheet model

Prepare a spread sheet model for the client that determines NPV/IRR with and without tax.

  Principles and tools for financial decision-making

Principles and tools for financial decision-making. Analyse the concept of corporate capital structure and compute cost of capital.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd