Reference no: EM13341068

Requirements

The basic requirement is to undertake a general financial analysis comparing Webjet Limited (ASX Code: WEB) financial position and performance in the Financial Years 2012 and 2013 compared to that of Wotif Limited (ASX Code: WTF) over the same period.

(Note: students are to use the ‘Consolidated' data in conducting their analysis.) The analysis should consider the ratio categories of : profitability, asset efficiency, liquidity, capital structure, and market performance.

Note that for those 2012 ratios which involve Balance Sheet figures students will require the 2012 annual statements (in addition to the 2013 report) to provide the 2012 beginning-of-year balance sheet figures.

The assignment will contain two main elements:

Schedule(s) of relevant ratios and other useful calculations

A detailed calculation of relevant ratios and other useful calculations should be included as one or more appendices prepared using Excel or a similar spreadsheet. Students are advised to show the formulae used in determining particular ratios and other figures. Data items (for example ‘Sales Revenue' or ‘Total Assets') should be entered in a single cell in a specially designated ‘data area' in the spreadsheet, with any calculation referencing the relevant data cell.

A written report

The written report should:

- Explain briefly what is revealed by the ratios and other calculations in the context of the company's profitability, asset efficiency, liquidity, capital structure, and market performance. In particular, any important changes over the period 2012 to 2013 should be identified, discussed and, where possible, explained.

- Provide an overall assessment of whether the company's performance over the 2013 financial year have been better than 2012, and which of the companies has improved its performance to a greater extent over this period. The judgement should be made from the perspective of existing equity investors (shareholders).