You should obtain a copy of the Annual Report of your selected company and other financial information to prepare a report about the company. Your review and report should cover FOUR FINANCIAL YEARS including; 2019, 2018, 17 and 2016 ONLY.
Any work covering financial years prior to 2016 will be RETURNED UNMARKED. The affected students will fail the module. Other formative exercises will be considered in the final results e.g. Class presentations.
Report
You should write a report that covers the following:
(i)Provide a brief synopsis about the company performance and background.
(ii)Define and calculate appropriate financial ratios for both 2019, 2018, 2017 and 2016: (All calculations should be taken to the appendix to the report)
PROFITABILITY RATIOS
1.Return on capital employed
2.Operating profit margin
3.Gross profit margin
LIQUIDITY RATIOS
4.Current ratio
5.Acid test ratio
EFFICIENCY RATIOS
6.Settlement period for trade payables
7.Settlement period for trade receivables
8. Stock turnover period
MARKET RATIOS
9.Earnings Per Share
10.Price/Earning ratio
(iii) Using the ratios calculated and other non- financial information, your group should discuss the performance of your selected company, with recommendations to management and to a potential investor
(iv) Briefly discuss the advantages and disadvantages of financial ratios.
(v) Briefly discuss the source of finance of your chosen company.
(vi) Briefly dis the content of the auditor’s report
