MBA Engineering Management MBA Financial Analysis For Managers’ Assignment Report page limit – maximum 10 double sided pages plus appendix for workings / supplementary data This assignment will be...

MBA Engineering Management
MBA
Financial Analysis For Managers’ Assignment
Report page limit – maximum 10 double sided pages plus appendix for workings / supplementary data
This assignment will be based on real data which can be taken primarily from the annual reports of the Ai
us group for the latest four years from XXXXXXXXXX
Full copies of the Annual Financial Reports are available on Moodle / Teams and through the websites of the Ai
us group.
You are required to analyse the financial performance of the Ai
us group over the last 4 years from 2018 – 2021.
This is an individual assignment.
Scenario
After a tumultuous couple of years for the aviation industry and amidst a complex and changing geopolitical and economic environment, the Ai
us group have managed to remain on their strategic flight plan. The risk profile however, remains high for the Ai
us group and for the aviation sector in general.
In the first quarter of 2022 the Ai
us group delivered 14 commercial aircraft and continue to increase their production rates of the A320 family to meet growing customer demand.
You are required to analyse the financial performance of the group over the last 4 years and examine how the internal and external environment have impacted their results.
Required
A professionally produced report which should include a detailed analysis of the following areas:-
(a) Profitability
(b) Efficiency
(c) Liquidity
(d) Gearing
(e) Horizontal common size analysis (using 2018 as a base)
(f) Vertical common size analysis (using total assets as a base)
(g) A balanced score card analysis incorporating non-financial measures of performance.
(h) Conclusions and Recommendations
You should state any assumptions made and you are not required to comment on the investment performance of the company.
Your findings should be submitted in a formal report with well founded conclusions and recommendations.
You should state any assumptions made
Assessment Criteria /marking scheme is attached for your reference. Copies of the annual financial reports for Ai
us for the 4 years XXXXXXXXXXinclusive have been copied for your reference on Moodle / Teams.
Please make sure you are aware of the rules regarding plagiarism. Whilst we encourage you to discuss ideas and issues with your colleagues, the final piece of work MUST BE ENTIRELY YOUR OWN.

MBA FINANCIAL ANALYSIS
AIRBUS GROUP FINANCIAL ANALYSIS
MARKING GRID FOR STUDENTS
    CRITERIA
    Total marks available
%
    Marks awarded
%
    COMMENTS
    Quality of presentation:
co
ect referencing
    7.5
    
    Professional presentation expected
Font size 12 Times New Roman
Standard margin sizes, headers & footers
In text citations and Harvard style Referencing where appropriate
All tables, graphs, charts and calculations to be placed in the appendix and cross refe
ed to in the main text.
Concise report style language – not essay
    Structure of Report
Report format
    7.5
    
    Should include:-
· Title page,
· Table of contents
· Executive Summary (approx. 1/8th in size of the main report)
· Introduction which should, include a
ief background and an indication of what is to come in the report
· The main body of the report should include sections on:- profitability efficiency, liquidity, gearing, horizontal analysis and vertical analysis
· Conclusion
· Recommendations
· References
· Appendix (which should include all graphs, charts, calculations etc.)
    Profitability – ratios could include
Gross Profit /Operational profit
Net Profit
Return on Shareholder funds
Return on Capital Employed
Others?
    10
    
    Range of profitability ratios (4 minimum)
Ratios should be co
ectly worked out and any assumptions stated regarding figures used
Trends should be analysed co
ectly and an attempt made to explain the trends.
Secondary supporting data could be used to support reasons put forward in your analysis.
Once all of the individual profitability ratios have been analysed you should provide a summary at the end of the profitability section giving the overall profitability position.
    Efficiency
Sales Revenue : Capital Employed
Sales revenue per employee
Debtor turnove
Creditor turnove
Stock turnover
Could look at other more aviation appropriate measures of efficiency
    15
    
    Careful selection of efficiency ratios required.
Only use those that are application to the organization in question.
Again ratios should be analysed co
ectly, explanation given as to what you are measuring with the ratio, an attempt should be made to explain the trends and give possible reasons.
Linking should be attempted with other ratios, information within the annual report, horizontal and vertical analysis and other secondary supporting data.
    Liquidity
Cu
ent ratio
Acid test
Working Capital cycle
    7
    
    Cu
ent ratio should be analysed. Cash Flow Statement should be used for further detailed analysis of the cash position.
Again ratios should be analysed co
ectly, explanation given as to what you are measuring with the ratio, an attempt should be made to explain the trends and give possible reasons.
Linking should be attempted with other ratios, information within the annual report, horizontal and vertical analysis and other secondary supporting data.
    Gearing
Loans: Capital Employed
Interest Cove
    5
    
    2 main gearing ratios should be used
Again ratios should be analysed co
ectly, explanation given as to what you are measuring with the ratio, an attempt should be made to explain the trends and give possible reasons.
Linking should be attempted with other ratios, information within the annual report, horizontal and vertical analysis and other secondary supporting data.
    Horizontal Analysis
Analysis of individual elements over 3 -4 years
    4
    
    Balance Sheet & Income Statement
Look at the changes in the key areas of both statements only e.g. Income Statement – investigate Sales / Operational Profit / Net Profit / Appropriations.
If there are significant changes then investigate further, e.g. if there is a significant change in net profit, examine all expenses to see why this has occu
ed.
Balance Sheet - investigate the 5 main parts of the statement – total Noncu
ent assets, total cu
ent assets, total cu
ent liabilities, total long term liabilities and total shareholder equity. Again if there is a significant change from one year to another, then investigate in more detail.
To summarize, analysis should highlight key changes from 2018, any significant increases or decreases should be investigated furthe
    Vertical Analysis
Analysis of individual elements over 3 – 4 years
    4
    
    Balance Sheet Only. Analysis should highlight percentage to total assets and comment should be made on any significant changes. Again look at the 5 main areas in the Balance sheet Total Noncu
ent assets, total cu
ent assets, total cu
ent liabilities, total long term liabilities and total shareholder equity and compare them to total assets as the base.
To summarize, analysis should highlight key changes from 2018, any significant increases or decreases should be investigated furthe
    Evaluation of business performance using non-financial measures
Balanced Score Card
    10
    
    (a) Identify how business success is measured
(b) Identify how the company evaluates performance and whether they use the balanced score card. If not suggest what elements they could include in such an analysis.
    Conclusion
Summary of overall position of the Organization over 4 year period and cu
ent financial standing
    10
    
    Conclusion should be what conclusions that you draw from your analysis – it should provide a holistic view of the financial status of the company
The conclusion should be linked closely with you findings.
    Recommendations
Consistency with analysis
Should be financially rather than business driven
    20
    
    Recommendations should logically flow from your analysis.
You need to focus on prioritizing your recommendations.
Recommendations should be financially driven and not general recommendations.
Recommendations should also focus on improving / strengthening i.e. they don’t just have to come from areas within your analysis that need improvement.
    TOTAL MARK
    100
    
    
    General Comments
    Assessor: Catherine Kennedy XXXXXXXXXXSignature:
Date : 2nd July 2022
BUSINESS DOCUMENT This document is intended for business use and should be distributed to intended recipients only.

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Pioneering
sustainable
aerospace –
esilience and
esponsibility
Ai
us
Annual Report 2019
Ai
us Defence and Space has developed an extensive portfolio
of Earth Observation satellites capable of providing high-
esolution imagery and environmental monitoring.
For 50 years, Ai
us has transformed aerospace through
old alliances, innovative products and technologies.
This has only been possible thanks to the strong commitment
of generations of passionate, visionary and talented people.
This annual report was prepared on the basis of the
Company’s 2019 operations, results and performance.
Today, as Ai
us releases this document, the world, the
aerospace and defence industry and the Company are
in the midst of the coronavirus pandemic. So in early 2020,
the entire world, humanity and globalisation look very
different; the Company and its stakeholders are adapting
at a fast pace in an even faster changing environment.
Despite the pandemic, Ai
us continues to report on its
2019 transformation activities which have begun to lay
the groundwork for the future.
Ai
us is focused on serving its customers and society
as a whole while remaining resilient. Throughout 2019, it
focused its efforts on building a sustainable, purpose-driven
culture that puts safety, quality and ethics at its heart while
listening to stakeholders and putting them at the centre
of all the Company does. The “Next Chapter” initiative was
designed to empower the Ai
us teams to achieve this.
Now, Ai
us is focused on its resilience, as a company
and as an industry, as well as meeting the needs
of wider society in the cu
ent context either directly
or via the Ai
us Foundation.
Resilience is a key word for all. The foundations laid in
2019 will support the Company through the crisis and
as it comes out on the other side.
Overview
02 Next Chapter
XXXXXXXXXXHighlights
06 Ai
us at a glance
07 Ai
us
08 Ai
us Helicopters
09 Ai
us Defence and Space
10 Chairman’s message
11 Board of Directors
12 Chief Executive Officer’s interview
13 Executive Committee
14 Sustainability and Environment
16 50 years of Ai
us
18 Chief Financial Officer’s interview
20 Share information
Universal Registration
Document
07 Risk Factors
23 Information of the
Company’s Activities
79 Management’s Discussion and
Analysis of Financial Condition
and Results of Operations
101 General Description of the Company
and its Share Capital
123 Corporate Governance
171 General Information
Financial Statements
05 Ai
us SE IFRS Consolidated
Financial Statements
13 Notes to the IFRS Consolidated
Financial Statements
85 Ai
us SE IFRS Company
Financial Statements
91 Notes to the IFRS Company
Financial Statements
111 Other Supplementary Information
Including the Independent
Auditor’s Report
From formation flights involving a wide a
ay
of aircraft to a special event at the Paris
Airshow, employees around the world marked
Ai
us’ 50th anniversary in 2019.
Where applicable, ‘Ai
us’ refers to commercial aircraft and
the integrated functions while ‘the Company’ refers