Microsoft Word - Assessment 2 - Final
Department of Business
Assessment item 2
Value: 30%
Due Date: 13-Oct-2019
Return Date: 27-Oct-2019
Length: Variable
Submission method options:
Background
Shaver Shop is a company who has had an eventful few years during the last few years of
operations.
Requirements
Based on your analysis of relevant information relating to Shaver Shop Group Limited, you are
equired to prepare a business
on the profitability, operating efficiency, liquidity, gearing of the company. The profitability and
efficiency of the company should be analysed using the required ratios. Firms are accounta
for generating profit with the assets employed. In addition, the firm must pay its debts as and
when they fall due, therefore you are required to assess the liquidity and gearing of the business
using the appropriate ratios. Use the data from the financ
calculate the ratios.
Your report should cover a 2
sufficiently
oad in scope to demonstrate your understanding of findings following the analysis.
Higher Education
Department of Business Management and Finance
Business Report
Preston Campus
77-91 St Georges Road
Preston, Victoria 3072
AUSTRALIA
NMIT CRICOS Code: 00724G
2019
2019
Submission method options: Alternative submission method
Shaver Shop is a company who has had an eventful few years during the last few years of
Based on your analysis of relevant information relating to Shaver Shop Group Limited, you are
usiness report (see recommended structure detailed below) with a focus
on the profitability, operating efficiency, liquidity, gearing of the company. The profitability and
efficiency of the company should be analysed using the required ratios. Firms are accounta
for generating profit with the assets employed. In addition, the firm must pay its debts as and
when they fall due, therefore you are required to assess the liquidity and gearing of the business
using the appropriate ratios. Use the data from the financial statements in the annual reports to
Your report should cover a 2-year period for the years ending July2017 to 2018, and should be
sufficiently
oad in scope to demonstrate your understanding of findings following the analysis.
and Finance
Shaver Shop is a company who has had an eventful few years during the last few years of
Based on your analysis of relevant information relating to Shaver Shop Group Limited, you are
eport (see recommended structure detailed below) with a focus
on the profitability, operating efficiency, liquidity, gearing of the company. The profitability and
efficiency of the company should be analysed using the required ratios. Firms are accountable
for generating profit with the assets employed. In addition, the firm must pay its debts as and
when they fall due, therefore you are required to assess the liquidity and gearing of the business
ial statements in the annual reports to
year period for the years ending July2017 to 2018, and should be
sufficiently
oad in scope to demonstrate your understanding of findings following the analysis.
Created by Joseph Aponso
Page 2 of 8 pages
The links to the Annual Reports are below:
2018:
http:
investors.shavershop.com.au/FormBuilde
_Resource/_module/wFMSjMp88
0CoIT0SQz1Qsw/docs
eports/annual_report_2018.pdf
2017:
http:
investors.shavershop.com.au/FormBuilde
_Resource/_module/wFMSjMp88
0CoIT0SQz1Qsw/docs
eports/2017_annual_report.pdf
Submission considerations:
Word limit 1,800 words (excluding tables, graphs and appendices, title page, executive
summary and bibliography).
All references should be appropriately acknowledged.
Other types of useful information may be available from the following sources;
Industry context: Australian Bureau of Statistics (ABS),
Market: Australian Securities Exchange (ASX) www.asx.com.au;
Newspapers: Australian Financial Review, other newspapers and business publications
*Note: Students are not expected to purchase industry or company specific reports from
commercial suppliers. Only resources which are available through University Li
ary or on
corporate or other websites (or other media such as Newspapers electronically available for
example) and which are free of charge are expected to be used.
Detailed requirements and mark allocation: Your report must cover the following:
Company and industry background (5 marks)
Brief profile Shaver Shop GroupLimited – Its history, financial highlights, and other
elevant company details and summarise the nature and cu
ent state of the industry in
which it operates. This section of work will help contextualise the report in terms of key
company information and the industry (and wider) environment in which the firm
operates.
History, should include: When and where it started operations, by who, major
expansions and acquisitions from then to now; types of products/services it offers,
significant business relationships; when listed on the stock exchange
Industry; includes identifying which industry it operates in, an understanding of the state
of the industry and identifying major competitors.
Created by Joseph Aponso
Page 3 of 8 pages
Manual calculation and Analysis of specific ratios (15 marks). Provide 2 decimal points
for your ratios
The minimum ratios to be manually calculated for each of the 2 years are:
Profitability
o return on shareholders’ equity
o return on total assets
o net profit margin
Efficiency
o inventory turnover
o settlement period for debtors/accounts receivable
o settlement period for creditors/accounts payable
o asset turnover
Liquidity
o cu
ent ratio
o cash flow from operations
Financial gearing
o gearing ratio
Terminology in Shaver Shop Group Limited Group’s Financial Statements
XXXXXXXXXXa. Profit or Loss Statement use Consolidated Statement of Comprehensive Income
. Balance Sheet use Consolidated Statement of Financial Position
c. Accounts Receivable use Trade and other receivables
d. Accounts Payable use Trade and other payables
e. Interest Expense use Finance Costs
f. Cost of goods sold use Cost of goods sold
2 Assume that 10% of sales are credit sales.
3. Assume 100% of Inventory (stock) purchases are on credit. As the purchases figure is
not available you will need to calculate it. (HINT: Use your COGS formula)
4. To calculate the gearing ratio you should use the following formula:
Gearing ratio =
Non − cu
ent liabilities
(Total Equity + Non − cu
ent liabilities)
∗ 100
Created by Joseph Aponso
Page 4 of 8 pages
Analysis and interpretation of financial performance, position, and market standing
Based on the financial reports and other information, prepare an analysis that covers the
past two financial years ending July 2017 and 2018, concentrating on the following
aspects and including a consideration of segment information and position in relation to
its industry:
Profitability (5 marks)
Efficiency (5 marks)
Liquidity (2.5 marks)
Gearing (2.5 marks XXXXXXXXXXTotal = 15 marks)
NB. Analysis does not mean just restating the ratios or their formulas you need to discuss the
implications.
Assessment of other relevant information (5 marks)
An assessment of other, typically non-financial, information relevant to the
assessment of the company’s cu
ent state of financial affairs (for instance; global
events, industry developments and issues, structural changes to the company such
as changes in board composition, mergers or acquisitions, economic factors and any
other relevant issues which may potentially impact on the operations of the
company).
While your report will focus on the financial performance of Shaver Shop Limited
Group consider also its environmental and social performance.
Summary, conclusion & Executive Summary (5 marks)
Based on your analysis and findings summariseShaver Shop LimitedGroup’s
cu
ent financial situation and consider its potential outlook and make any
ecommendations
Created by Joseph Aponso
Page 5 of 8 pages
Suggested Report Structure
1. Title Page
2. Executive Summary
3. Introduction and Purpose of Analysis
4. Company and Industry Background
o Company
o Industry
5. Analysis of Financial Report Data
o Profitability
o Efficiency of Operations
o Liquidity
o Gearing