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Prepare a horizontal analysis of the income statement

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Reference no: EM132085312

ASSIGNMENT 1

In gradebook you will see a section "Company number" with a number between 1 and 6. This is the number of the company that you are allocated for this assignment.

1 Aristocrat Leisure Ltd (ALL)
2. Bega Cheese Ltd (BGA)
3. Cash Converters International Ltd (CCV)
4. JB Hi Fi Ltd (JBH)
5. Retail Food Group Ltd (RFG)
6. Woolworths Ltd (WOW)

Required:

A. Access the annual reports for your allocated company for the years 2013, 2015 & 2017. These reports arc usually available on the company's website under "Investors". Alternatively, if you cannot locate each of the years, you should be able to access.

B. The annual reports will provide you with six years of financial statements for 2012, 2013, 2014, 2015, 2016 & 2017.

C. Prepare a horizontal analysis of the Income statement for the five years 2013 - 2017. Comment on the changes over the five years. (Approximately 300 words)

D. Calculate the following ratios for the five years 2013 - 2017 (2012 financial information will assist you in calculating averages, where necessary).
1. Return on total assets (not in text - search in Google and cite your findings)
2. Rate of return on ordinary equity
3. Operating profit margin
4. Gross profit Margin
5. Inventories turnover period
6. Settlement period for debtors
7. Current ratio
8. Quick ratio (acid test ratio)
9. Debt to assets ratio (not in text - search in Google and cite your findings)
10. Interest cover ratio (Times interest earned)
11. Assets turnover (not in text - search in Google and cite your findings)
12. Earnings per share
13. Price-earnings ratio (refer to Blackboard for stock price history for five years).
14. Dividend yield (refer to Blackboard for the dividend history for five years). (7 marks)

E. Given the ratios over five years, comment on the company's profitability, efficiency, liquidity, financial gearing and investment ratios. Approximately 1.000 words.

You may also refer to coverage in the financial press that is related to sour company. This might help you in evaluation of the company - please cite 'our sources!

Cash Converters Ltd (CCV) Year end 30th June

 

2013

2014

2015

2016

2017

Dividends paid during year

$0.0375

$0.040

$0.04

$0.02

$0.01

Market price of share at 30th June each year

$1.07

$1.08

$0.70

$0.44

$0.395

Attachment:- accounting formulas.rar

Reference no: EM132085312

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len2085312

8/13/2018 12:58:42 AM

Given the ratios over five years, comment on the company's profitability, efficiency, liquidity, financial gearing and investment ratios. Approximately 1.000 words. Note: You may also refer to coverage in the financial press that is related to sour company. This might help you in evaluation of the company - please cite 'our sources!

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