MBA403_T2_2020_Assessment_03
Page 1 Kaplan Business School Assessment Outline
Assessment 3 Information
Subject Code: MBA403
Subject Name: Financial & Economic Interpretation and Communication
Assessment Title: Financial Analysis Report
Assessment Type: Report
Weighting: 30 %
Total Marks: 30
Submission: Due in Turnitin on Monday by 23:55 (11:55pm) AEST
Due Date: Week 13
Your Task
Select a company that is cu
ently listed on the ASX.
Write a Financial Analysis Report using an essay structure to interpret a company’s most recent
annual report.
Assessment Description
Students will write a Financial Analysis Report for a stakeholder (external investor or internal
manager) that interprets the annual report of an Australian company. The Report will clearly state
ecommendations about the company’s suitability for share investment or internal management.
The company should be listed on the ASX.
Students will be assessed on the thoroughness of the financial analysis. Thoroughness requires
a logical justification of why financial and non-financial performance indicators are included in the
analysis. The analysis will be formally written to meet the expectations of a stakeholder.
The report is limited to 1000 words, plus or minus 10%, excluding title page and bibliography.
Assessment Instructions
Select a company that is cu
ently listed on the ASX.
Write a Financial Analysis Report that interprets the company’s most recent annual report. This
eport will need to be written for a stakeholder (external investor or internal manager).
Research additional information beyond the annual report about the company’s performance.
Use the group financial results if the annual report presents financial results for the group and
parent company.
Justify the selection of financial and non-financial performance indicators that are relevant for
evaluating the company’s financial performance.
Use a formal language and structure of your report. Refer to Resource A below. Include relevant
non-financial analyses. Refer to Resource B below.
Page 2 Kaplan Business School Assessment Outline
Resource A – Financial Analysis Report content
Executive summary
The executive summary should be approximately 10% of total word count.
It provides a background of the company chosen, the main business activities and the purpose of
the Financial Analysis Report.
Analysis
Analysis will present and discuss the financial results and performance indicators extracted from
the company’s annual report.
A concise commentary should explain the significant changes in the financial results.
Interpretation
The interpretation should be approximately 70% of total word count.
Interpret the causes of the changes in the company’s financial performance. Justify the inclusion
of financial and non-financial performance indicators in the Financial Analysis Report.
Research additional non-financial performance indicators from a wider range of sources beyond
the company’s own publications.
Discuss the company’s business activities and the financial implications of the activities. Apply
financial and non-financial performance indicators to explain trends and issues in the company’s
financial results.
Conclusion
The conclusion should be approximately 20% of total word count.
State a clear recommendation that addresses the decision-making needs of a stakeholder. For
example, recommend a decision to invest or not invest in the company if the Report is written for
a potential shareholder. Or, recommend a decision to improve the financial performance of the
company if the Report is written for an internal manager.
Justify recommendations by explaining how it will meet the needs of the stakeholder.
Bibliography and In-text Citations
The Academic Integrity and Conduct Policy requires the appropriate use of intext citations and
ibliography. You must cite all references (information sources) and comply with the expectations
for academic writing.
The bibliography and citations are excluded from total word count.
Page 3 Kaplan Business School Assessment Outline
Resource B
Consider the following questions if they are relevant to the company’s financial performance.
• What are the core business area(s) and geographic locations in which the company
operates?
• How have specific financial results improved or changed?
• Is there evidence from other sources that can verify the trends for the industry?
• What are the company’s cu
ent business strategy or strategies and key points of
difference in the target market? Is there a specific skillset required of employees?
• What is the cu
ent and future market potential for the company? What influences have
ecent global events apparently had on the company? In which specific areas?
• Identify strengths of the company’s management team and how these may benefit the
organisation in future financial years.
• What are the remuneration trends from last year to this year for the highest earners?
• Is there a difference in the wages that could be earned in a competitor’s business?
• What is the cu
ent management structure and ownership structure?
• Identify strengths of the company’s management team and how these may benefit the
organisation in future financial years.
• What are the remuneration trends from last year to this year for the highest earners?
• Are there other non-wage-related benefits?
Page 4 Kaplan Business School Assessment Outline
Important Study Information
Academic Integrity Policy
KBS values academic integrity. All students must understand the meaning and consequences
of cheating, plagiarism and other academic offences under the Academic Integrity and Conduct
Policy.
What is academic integrity and misconduct?
What are the penalties for academic misconduct?
What are the late penalties?
How can I appeal my grade?
Click here for answers to these questions:
http:
www.kbs.edu.au/cu
ent-students/student-policies/.
Word Limits for Written Assessments
Submissions that exceed the word limit by more than 10% will cease to be marked from the point
at which that limit is exceeded.
Study Assistance
Students may seek study assistance from their local Academic Learning Advisor or refer to the
esources on the MyKBS Academic Success Centre page. Click here for this information.
http:
www.kbs.edu.au/cu
ent-students/student-policies
https:
elearning.kbs.edu.au/course/view.php?id=1481
Page 5 Kaplan Business School Assessment Outline
Assessment Marking Guide
The following criteria will be applied to marking your assignment.
Presentation /5
The Financial Analysis Report adheres to the total word count of 1,000 words
The Financial Analysis Report is clearly written, logically structured, and draws a logical
conclusion(s)
Financial information is evaluated and presented to meet the expectations of a stakeholder
(external investor or internal manager).
Technical Skills /20
Financial and non-financial data is interpreted, analysed and justified for relevance to the
company’s performance
Financial theory and principles are applied in the evaluation and discussion
Relevant and specific advice is provided to the stakeholder that addresses their needs
Stakeholder Engagement /5
The selection of data sources is relevant to the interests of the stakeholder.
The language and tone (grammar and syntax) of the Financial Analysis Report are formal
and professional
TOTAL /30
Assessment 3 Information
Your Task
Assessment Description
Assessment Instructions
Resource A – Financial Analysis Report content
Executive summary
Analysis
Interpretation
Conclusion
Bibliography and In-text Citations
Resource B
Important Study Information
Academic Integrity Policy
Word Limits for Written Assessments
Study Assistance
Assessment Marking Guide
Financial Analysis Report
A sample ‘Table of Contents’
EXECUTIVE SUMMARY
INTRODUCTION
Mention the stakeholder, the company, (very
ief) company operations and reasons for the report
RATIO ANALYSIS
· Financial Ratios: Profitability, Liquidity, Efficiency, Investment etc
· Non-Financial Key Performance Indicators (KPIs)
TREND ANALYSIS
· Income Statement, Balance Sheet & Cash Flow Statement reviews
SUSTAINABILITY/CORPORATE SOCIAL RESPONSIBILITY (CSR)
· Goals, Programs, Performance (Relevant Key Highlights)
INDUSTRY/COMPETITOR ANALYSIS
· Market Position, Competitive Advantage (Relevant Key Facts)
HORIZONTAL ANALYSIS
· Financial condition and performance from Statements (% increase/decrease) across at least 2 years
VERTICAL ANALYSIS
· Relationships in Statements expressed as a % of a base figure (e.g. % net sales in Income Statement, % of total assets in Balance Sheet)
CONCLUSIONS & RECOMMENDATIONS
Make sure you address the needs of the Stakeholder you selected
REFERENCE LIST
Bibliography
Chosen Company – AGL Utilities
Download your company’s most recent annual report
Scroll down to see “Announcements”
Download and review the 'results presentation' - this is a high-level presentation on results and outlook and gives a good overview of what the company does and what aspects the management are focusing on. It usually also includes horizontal trend analysis of performance
(This can also be found on your chosen company's own website - easiest to search for "company name" and "investor relations").
Google
Search media releases, articles, and analysts’ reports
Example of an Executive Summary structure for an Accounting & Finance type report
An executive summary provides an overview of a larger document or research and is usually the first thing your reader will see. Oftentimes, executive summaries are the only place decision makers will go to determine if action is wa
anted on a particular action or idea
Essentially, an executive summary is the back cover of your book, convincing readers that it's worth their time to read the whole thing.
State what the report is about
This report provides an analysis and evaluation of the cu
ent and prospective profitability, liquidity and financial stability of Outdoor Equipment Ltd for a potential Investo
Briefly say what analysis was undertaken
Methods of analysis include trend, horizontal and vertical analyses as well as ratios such as Debt, Cu
ent and Quick ratios. Other calculations include rates of return on Shareholder Equity and Total Assets and earnings per share to name a few.
Details of all calculations can be found in the appendices
Highlight the findings from your analysis
Results of data analysed show that all ratios are below industry averages. In particular, comparative performance is poor in the areas of profit margins, liquidity, credit control, and inventory management.
Present your key conclusions and recommendations
The report finds the prospects of the company in its cu
ent position are not positive. The major areas of weakness require further investigation and remedial action by management. Recommendations for (name the Stakeholder) discussed include:
-improving the average collection period for accounts receivable·
-improving/increasing inventory turnover·
-reducing prepayments and perhaps increasing inventory levels
(Optional) Mention any limitations or constraints of the report
The report also investigates the fact that the analysis conducted has limitations. Some of the limitations include:
-forecasting figures are not provided
-cu
ent economic conditions not factored in
-data limitations as not enough information is provided or enough detail i.e. monthly details not known
-results are based on past performances not present