Determine CSLs Sustainable Growth Rate

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Reference no: EM132848714

Requirement

The following three independent elements are to be completed. Please be as specific to CSL Limited as possible by referring to its annual report, Australia accounting standard and any information in related to its industry (eg. the industry growth rate). Please quote the page number if information from the annual report is used. Minimum of 7 references are required.

(1) With reference to CSL Limited (ASX: CSL) Annual Report 2020,
»Evaluate CSL's prospects for profitability and growth in the next five years (i.e., you may wish to refer to Porter's ‘five forces' framework in your analysis). (250 words approx). Porter's five forces framework includes "Rivalry Among Existing Firms", "Threat of New Entrants", "Threat of Substitute Products", "Bargaining Power of Buyers", and "Bargaining Power of Suppliers".
»The COVID-19 pandemic is a traumatic experience for corporations and managers, what other factors do and could affect CSL's competitive environment? (100 words approx)

(2) With reference to CSL Limited Annual Report 2020 and Corporate Governance Statement 2020,
»Review CSL's accounting policies and notes to financial statements, what accounting policies are likely to be closely monitored by analysts? Why? (e.g., the application of the accounting policies may lead to financial misstatements or opportunities for earnings management). (150 words approx)
»Evaluate and score CSL's governance to see if it meets ‘best practice' regarding corporate reporting and transparency (ASX Corporate Governance Principles and Recommendations, 2014). The suggested scoring scale is 0 = non-compliance, 1 = compliance. (150 words approx)

(3) With reference to CSL Limited Annual Report 2020,
» Undertake the DuPont analysis of ROE and briefly comment on the drivers of profitability. Please provide Excel for the calculations. (100 words approx)
» Undertake an analysis of ROE using the alternative decomposition approach.Please provide Excel for the calculations.(150 words approx)
» Determine CSL's Sustainable Growth Rate. (50 words approx) Comment on the growth potential with reference to information from recent newspaper articles. (100 words approx)

Attachment:- CSL Limited.rar

Reference no: EM132848714

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4/4/2021 11:51:02 PM

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