A brief introduction to the company, the nature of its business and a brief overview of its financial performance and position over the past five years. Use suitable graphs and tables to display your data

Module Code

MBB7008 M

Module Tutor

Module Title

Finance for Decision Making

Level

7

Credit Value of Module

20

Assessment Task

Written report

Word Count

1,750

Assessment No

1

of

2

Weighting

50%

Type of Submission

Written work

Method of Submission

Turnitin via Moodle

Publication Date

25th May 2023

Due Date

12pm 16th June 2023

Expected Feedback Date

15 working days from the date of submission (excludes weekends and University closure days)

Format of Feedback

Typed, via Moodle

Learning Outcomes

PLO7.1, PLO7.2, PLO7.3, PLO7.6, PLO7.7,

Assignment Description

Introduction

Task - Analysis of financial accounts

You must choose a UK based Plc. company from the Published Annual Reports folder on Moodle. You must follow the instructions on Moodle “Selecting your primary company for your assignment” and receive confirmation from your tutor that your choice of company is approved. You must also find a suitable competitor company from the list to enable valid comparisons of performance to be made.

Required:

a) A brief introduction to the company, the nature of its business and a brief overview of its financial performance and position over the past five years. Use suitable graphs and tables to display your data(15 marks)

b) A two-year comparison of the financial performance of your company and a suitable competitor using at least 10 ratios per year. Your analysis should cover profitability, liquidity, efficiency and capital structure. Review and adjust your ratios in the light of any changes in accounting policy or any unusual transactions or events that might have occurred and discuss the ratios fully.

(60 marks) 

c) An analysis of the investment potential of your chosen company using at least 4 investor ratios together with a suitable analysis of the company share price over the last 6 months. Highlight reasons for any significant fluctuations and whether the business could provide a good investment for the future.(15 marks)

d) A discussion of the usefulness, limitations and reservations regarding ratio analysis and the use of financial statements in your analysis in parts (b) and (c) above. (10 marks)

Total 100 marks

Additional Information

You are advised to obtain a copy of the company and its competitor annual report from their website and to calculate the ratios manually rather than using those provided by the internet or financial databases. Marks for ratios will only be given where workings are clearly shown in an appendix to your report

Keep abreast of business news about your company to explain any impact on that this news has had on the share price and perceived performance of your company. You should make use of tables & graphs to present complex information and ensure that the report is written in a professional way. Remember that your report needs to critically address the issue of whether the business is a worthwhile investment rather than simply describing the ratios and financial data.

Any calculation of ratios or supplementary data can be included in an appendix to your work. Work in an appendix does not count towards the word count limit.

Your analysis should cover the limitations of ratio analysis.

Assessment Regulations

• Your attention is drawn to the University policy on cheating and plagiarism. Penalties will be applied where a student is found guilty of academic misconduct, including termination of programme Policy Link

• You are required to keep to the word limit set for an assessment and to note that you may be subject to penalty if you exceed that limit. (Policy Link) You are required to provide an accurate word count on the cover sheet for each piece of work you submit.

• For late or non-submission of work by the published deadline or an approved extended deadline, a mark of 0NS will be recorded. Where a re-assessment opportunity exists, a student will normally be permitted only one attempt to be re-assessed for a capped mark. (Policy Link).

• An extension to the published deadline may be granted to an individual student if they meet the eligibility criteria of the Exceptional Circumstances Policy.

• Write your report in Aerial font, 12 point