Reference no: EM132252723 , Length: word count:1800
Assignment - FINANCIAL REPORTING
Details of what you are expected to do:
1. Rationale: expands the theoretical base of financial accounting, by critically analyzing and evaluating the financial performance of a company.
2. The learning outcomes being assessed: Critically analyse and appraise company performance.
Using the latest three annual reports of your allocated company, select and calculate exactly 6 ratios of your choice over the last two-year period.
Assignment requirements: Company Assigned: BURBERRY Group PLC
You will be assigned a company to analyse (Burberry Group Plc). Using the latest three annual reports of the company allocated to you, analyse the financial performance and position of the company from an investor's point of view using ratio analysis. You are expected to select and calculate exactly 6 ratios of your choice over each of the last two-year period for this purpose( for example for the years 2015, 2016 and 2017).
Explain with reasons whether you will be prepared to invest in this company. Historical share prices can be obtained at UK Yahoo finance website.
Your solution should be presented in a report format and should include an executive summary and a list of references at the end. All tables and calculations should NOT be included in the main report but as appendices.
Any of the following 6 ratios can be calculated and used in the analysis from an investor's point of view.
Profitability ratios:
- Return on Capital Employed (ROCE)
- Return on Equity (ROE)
- Gross Profit Margin (GPM)
- Net Profit Margin (NPM)
Liquidity Rations:
Gearing:
- Gearing ratio
- Interest Cover
Efficiency and effectiveness:
- Non-current Asset Turnover
- Trade Receivables Collection Period
- Trade Payables Payment period
- Inventory Holding Period
Recommended Guide FINANCIAL REPORT WRITING
- EXECUTIVE SUMMARY - a synopsis of the report (the second last thing to be written)
- CONTENTS PAGE (the last thing to be written!)
- SECTION 1 - INTRODUCTION
- SECTION 2- ANALYSIS OF FINANCIAL PERFORMANCE
Using the latest three annual reports of your allocated company, select and calculate exactly 6 ratios of your choice over the last two-year period.
2.1. to 2.6 - Calculation, explanation of your chosen 6 ratios (note the calculations of your ratios should be included in the appendices).
Attachment:- Assignment File.rar