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FIN600/FINA6017_Assessment 2_Case Study Report Page 1 of 9 ASSESSMENT 2 BRIEF Subject Code and Title FIN600/FINA6017 Financial Management Assessment Case Study Report Individual/Group Individual...

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FIN600/FINA6017_Assessment 2_Case Study Report
Page 1 of 9
ASSESSMENT 2 BRIEF
Subject Code and Title FIN600/FINA6017 Financial Management
Assessment Case Study Report
Individual/Group Individual
Length Up to 3000 words
Learning Outcomes This assessment addresses the following subject
learning outcomes:
a) Apply the key theories and principles of financial
management within varying contexts.
) Critically evaluate the role and content of each of the
four main financial statements as sources of quantitative
data, and their impact on business decision making.
c) Investigate and evaluate the range of issues involved
in the different types of funding.
d) Understand and evaluate budgets and their impact on
long and short-term business decisions.
e) Critically analyse financial statements using effective
strategies and apply accountancy information for
informed managerial decision-making.
Submission 12 Week Delivery: Due by 11:55 pm AEST/AEDT Friday of
week 11 (End of Module 6.1)
6 Week Delivery: Due by 11:55 pm AEST/AEDT Friday of
week 5 (End of Module 6.1)
Weighting 50%
Total Marks 50 marks
Context
The purpose of the assignment is to provide you with the opportunity to apply the
knowledge and skills acquired in FIN600/FINA6017 Financial Management, to a practical
task, involving the use of ‘real-world’ accounting information. This is intended to consolidate
your accounting knowledge and skills.
FIN600/FINA6017_Assessment 2_Case Study Report
Page 2 of 9
Instructions
The basic requirement is to undertake a general financial analysis, comparing financial
position and performance over the two most recent financial years, of an ASX listed
company. Your Learning Facilitator will provide the details of the ASX listed company.

The annual report for the chosen company should be available on the company website
and/or will be provided by your Learning Facilitator.

The analysis should consider each of the following financial ratios:
- profitability and market performance
- efficiency,
- liquidity,
- capital structure

Note: You are to use the ‘consolidated’ data in conducting your analysis.
You are only required to look at the most recent financial report. For those ratios which
involve averages, you will calculate an average for the most recent year only, the prior
year ratio calculation will NOT consider average calculations.
This assignment will contain two elements:
1. Schedule(s) of relevant ratios and other useful calculations
- The detailed calculation of relevant ratios and other useful calculations should be
included, as one appendix, prepared using Excel. An example template is provided
under the assessment 2 information, FIN600,FINA6017 Assessment 2 Appendix
template.xls.
- You will be advised by your facilitator as to which ratios to calculate.
- You are advised to show the formulae used in determining particular ratios and
other figures.

2. A written report
The written report is the main element of this assessment. A sample template is
provided under the assessment 2 information, FIN600/FINA6017 Assessment 2 report
template.doc.

The written report should:
- Explain what is revealed by the ratios and other calculations, in the context of the
company’s profitability, asset efficiency, liquidity, capital structure, and market
performance.
- In particular, any important changes over the two financial years should be
identified, discussed and, where possible, explained.
- Provide an overall assessment of whether the company, over the recent financial
year, has been better than the previous financial year, in the perspective of existing
equity investors (shareholders).
FIN600/FINA6017_Assessment 2_Case Study Report
Page 3 of 9
In preparing this report, you should:
- analyse the financial statements of the business;
- identify key ratios and apply ratio analysis;
- argue the case of why the organisation may or may not succeed in the future and
what the business should be doing to help it succeed;
- consider the impact of the political and competitive environment on the business;
- include external factors that need to be taken into consideration and the likelihood
of a merger or acquisition;
- provide a recommendation, that is, would you invest in this company after your own
analysis or under what circumstances would you buy/save the business?

The assignment is to comply with the University’s General Guide for the Presentation of
Academic Work. Please see more information here: https:
laureate-
au.blackboard.com/webapps
lackboard/content/listContent.jsp?course_id=_20163_1&co
ntent_id=_2498849_1


Points to consider
i. You are encouraged to seek and use additional public information about the
company from sources, other than the annual report (for example, the internet,
journal articles, newspapers, and business magazines).
ii. However, it is NOT envisaged that you will be engaged in extensive research of
this nature and it is expected that the annual report will be the primary resource
elied upon, in completing the assignment.
iii. You are asked NOT to try and make direct personal contact with the company or
its officers (for example by telephone, fax, letter or email), in an attempt to
gather further information.
iv. It is important to note that you must NOT reproduce company promotional
material from the annual report or company website and represent it as critical
analysis.
v. You will be provided relevant share price data for the company by your facilitator
so that investment ratios (such as a price earnings ratio) can be calculated.
vi. You may find it useful to consult accounting references, in addition to the
prescribed text, which deals with the analysis and interpretation of company
financial reports.
vii. As this is a Masters-level subject, students are expected to engage with high
quality credible resources (eg. academic journal articles) to support and
develop arguments and position statements, using the To
ens University
Li
ary: http:
li
ary.laureate.net.au. References to ‘Wikipedia’ or similar
unsubstantiated sources will not be accepted.


https:
laureate-au.blackboard.com/webapps
lackboard/content/listContent.jsp?course_id=_20163_1&content_id=_2498849_1
https:
laureate-au.blackboard.com/webapps
lackboard/content/listContent.jsp?course_id=_20163_1&content_id=_2498849_1
https:
laureate-au.blackboard.com/webapps
lackboard/content/listContent.jsp?course_id=_20163_1&content_id=_2498849_1
http:
li
ary.laureate.net.au/friendly.php?s=main

FIN600/FINA6017_Assessment 2_Case Study Report
Page 4 of 9
viii. It is essential that you use the appropriate APA 6th referencing style, for
citing and referencing research. The assignment is to include in-text
citations and a reference list following the appropriate APA 6th referencing
style. Please see more information on referencing here:
https:
li
ary.to
ens.edu.au/academicskills/apa/tool
Submission Instructions
Submit the assessment via the submission link of “Assessment 2 – Report” on the student
portal in the main navigation menu in FIN600/FINA6017 Financial Management by the due
dates:
12 Week Delivery: Due by 11:55 pm AEST/AEDT Friday of Week 11 (End of Module 6.1)
6 Week Delivery: Due by 11:55 pm AEST/AEDT Friday of Week 5 (End of Module 5)
Assessment Marking :
Students should use this assessment
ief to guide what to include in the assessment and
the following ru
ic to inform the standard required.
Your assessment will be marked against the ru
ic which is shown on the next pages. Please
ensure that your assessment report addresses all of the Assessment Attributes in the ru
ic.
Your Learning Facilitator will provide feedback via the Grade Centre in the student portal.
Feedback can be viewed in My Grades.
Please read the ru
ic shown on the next pages.

https:
li
ary.to
ens.edu.au/academicskills/apa/tool

FIN600/FINA6017_Assessment 2_Case Study Report Page 5 of 9

Learning Ru
ic: Assessment 2
Assessment
Attributes
Fail (Unacceptable)
0-49%
Pass
(Functional)
50-64%
Credit
(Proficient)
65-74%
Distinction
(Advanced)
75 -84%
High Distinction
(Exceptional)
85-100%
Critically
evaluates the
four main
financial
statements to
provide an
overview and
description of
the company

10%
Limited understanding
of key concepts required
to support discussion.

Limited or no description
of company’s core
usiness, and details of
its different business
activities
usiness
segments.

Limited or no discussion
of the composition of
company’s financial
esources.

Limited or no discussion
of the key elements of
financial performance
eports.

Resembles a recall or
summary of key ideas.

A satisfactory
description of the
company’s core
usiness, and details of
its different business
activities
usiness
segments.

A satisfactory discussion
of the composition of
the company’s financial
esources.

A satisfactory discussion
of the key elements of
financial performance
eports.
Supports personal
opinion and information
substantiated by
evidence from the
esearch/course
materials.

A good description of
company’s core
usiness, and details of
its different business
activities
usiness
segments.

A good discussion of the
composition of the
company’s financial
esources.

A good discussion of key
elements of the financial
performance reports.
Discriminates between
assertion of personal
opinion and information
substantiated by robust
evidence from the
esearch/course
materials and extended
eading.

A very good description
of the company’s core
usiness, and details of
its different business
activities
usiness
segments.

A very good discussion
of the composition of
company’s financial
esources.

A very good discussion
of key elements of the
financial performance
eports.

Systematically and
critically discriminates
etween assertion of
personal opinion and
information
substantiated by robust
evidence from the
esearch/course
materials and extended
eading.

Excellent description of
the company’s core
usiness, and details of
its different business
activities
usiness
segments.

Excellent discussion of
the composition of
company’s financial
esources.

Excellent discussion of
key elements of the
financial performance
eports.
FIN600/FINA6017_Assessment 2_Case Study Report Page 6 of 9

Critically
analyses and
calculates ratio
using effective
strategies and
application of
accountancy
information

30%

Ratio calculations have
not been attempted or
are inco
ect.

Analysis of ratio results
is non-existent or is
merely describing the
esult of the ratio
calculated.
Some ratio calculations
are completed
Answered Same Day Nov 26, 2021 MKT600 Torrens University Australia

Solution

Parul answered on Nov 27 2021
147 Votes
TELSTRA
Student name – ID
FIN600/FINA6017 T3 2020
Assignment – WES
Contents
2Executive Summary
3Introduction - Background and Business
4Company Analysis - Cu
ent Financial performance, Key financial highlights, Economic outlook
7Ratio Analysis
17Recommendation
18Conclusion
18References
Executive Summary
This report will give the extensive research and analysis on Wesfarmers. Valuation of Wesfarmers as well as analyzing the financial performance of the company is primarily based on multiple growth factors which drives the revenue and earnings of the company. Moreover, comprehending various rations and DCF valuations are based on some assumptions which is explicitly mentioned in the report (Wesfarmers Annual Report, 2020). I would recommend to investors to keep a closer eye on the stock as it is overvalued by the market. Furthermore, the value of the stock is going down because of trouble with the spread of Corona pandemic Russian cu
ency, economic crisis in Venezuela and demonetization impact in India (Group, 2020).
Fig1 Cu
ent Share Price of Wesfarmers (WES) Source: Group, 2020
Comparing with market price of $48-$49.9 intrinsic value of Wesfarmers is $28.6. However, it cu
ently being traded at $49 t0 $50 (as on 27th Nov2020). The stock price of company has consistently dipped in last 15 days from $50 to $48 and is expected to go down further. I would recommend investors to sell the stocks and cash the returns in the process (Group, 2020).
Introduction - Background and Business
Wesfarmers was established in the year 1914 as Western Australian Farmer's cooperative and today it has grown to one of the largest and most successful listed organization in Australian Stock Exchange. Organization is based in Perth, Wesfarmers as an organization has diversified its business into many domains like outdoor living, home improvement, building materials, apparels and general merchandise. Furthermore, business also flourishes in office and technology products, manufacturing as well as developing fertilizers and distribution of chemicals. The organization is one of the largest non-governmental employers in the country with employee strength of 107,000 team members since it is owned by more than 487,000 stakeholders (Wesfarmers Annual Report, 2020). By the virtue of thus report, I have performed detailed analysis on the organization Wesfarmers as well as its business that comprises operations, activities and how is the company performing financially. I have refe
ed the Annual Report of Wesfarmers 2020 in order to deep dive into several key aspects that can enlighten us regarding how is the organization performing financially over the two years taken as a period of research (Group, 2020).
Wesfarmers Limited principally participates in the retail business in Australia, New Zealand, the United Kingdom, and universally. It is engaged with the retail offer of building materials, and home and nursery improvement items through its Bunnings stores; attire, homewares, and general product, including toys, relaxation, amusement, home, consumables, electrical items, and embellishments; and office items and a
angements, for example, office supplies, innovation, furniture, craftsmanship supplies, instruction assets, and accommodating administrations, including print and duplicate and on location technical support through its 167 Officeworks stores. The organization likewise fa
icates and supplies alkali, ammonium nitrate, and modern synthetic substances; makes, imports, and circulates phosphate, nitrogen, and potassium-based composts in mixed, compound, and fluid structure; supplies polyvinyl chloride gums utilized in a scope of items containing funneling, link protection, floor covers, building profiles, bundling, and mixes; produces wood-plastic composite items from reused wood and plastic; and makes and disperses sodium cyanide, which is utilized in the digging business for gold extraction. What's more, it concentrates, advertises, and disperses condensed oil gas and melted gaseous petrol; conveys devices, wellbeing gear, work wear, and modern supplies; supplies mechanical, forte, and clinical gases; supplies and circulates support, fix, and working items; and gives hazard the executives and consistence administrations, just as offers property the board administrations. Further, the organization gives its items on the web. Wesfarmers Limited was established in 1914 and is settled in Perth, Australia.
The Wesfarmer's Way
The vision of the organization is very strategic that helps the organization to be forward looking and aligned towards future. It explains where and what organization requires in future. Primary objective of the organization is to offer profits and satisfactory return to the shareholders by the virtue if financial discipline and exceptional management of a diversified portfolio of the business. One of the primary focus of the organization is to make sure that diverse business has solid management capability that is accountable for the development for strategy as well as execution (Wesfarmers Annual Report, 2020).
Company Analysis - Cu
ent Financial performance, Key financial highlights, Economic outlook
Analyzing the business performance, I have mixed feeling towards the organization with stock trading at lower price on the Australian Stock Market. Nevertheless, the organization has solid revenue and earning potential in the year 2020. It is one of the few organizations that has declared the dividends of 77 cents for each share. Although in this financial year, organization has witness certain price volatility organization has also been majorly advantageous with customer inclination towards the
and. There has been evolving consumer preferences due to the massive coronavirus pandemic and Wesfarmers has reported solid sales increase all across the office locations of Bunnings and Kmart (Wesfarmers Annual Report, 2020). On a wider spectrum, organization have reported
· There is increase of revenue up to 10.5% accounting to massive $30,846 millions
· There is increase of profits accumulated up to 8.2% accounting to $2,099 million
· Earnings per share (EPS) accounts to 185.6 cents
· Complete year dividend of $1.52 per share that have been reduced by 14.6%
Financial highlights/events of 2020
On a more granular level, the organization's retail arms recorded especially solid outcomes: Bunnings saw its income climb 13.9%, to $14,999 million; Kmart developed its incomes by 7.2%, to $9,217 million; while Officeworks end up being the best performing portion from a top-line viewpoint, with income hitting $2,787 million, on a suggested development pace of 20.4%, while profit (EBIT) rose 13.8% to $190 million (Wesfarmers Annual Report, 2020).
Fig2: Mean, Media and Highest Price of Wesfarmers effective 27th Nov, 2020 (Source: Wesfarmers Limited (ASX:WES) Delivered A Better ROE Than Its Industry, 2020)
Significantly be that as it may and perhaps the most symbolic of the COVID-19 spread actually prompted move in purchaser conduct was the powerful online deals development Wesfarmers recorded in FY20. Here, the organization announced online deals of $2.1 billion; or $1.5 billion (+60%), while ba
ing deals from Catch (Wesfarmers Annual Report, 2020). The organization noticed that this business energy proceeded in July and August over the entirety of the organization's retail arms. At last, Wesfarmers additionally announced a last profit of 77 pennies for each offer and an exceptional profit of 18 pennies for every offer, gotten from the organization's ongoing sell down of its stake in Coles Group (COL). All up, Wesfarmers entire year profits are set to come in at 152 pennies for each offer.
Economic Outlook
July deals were solid, upheld by the reformist returning of economy, clients investing more energy at home and government upgrade. Nonetheless, it was additionally hailed that the desire was for deals to be affected in the close term because of lockdowns in Victoria and New Zealand. Deals are required to be affected however the continuous evacuation of government improvement measures and some client buys in FY20 being presented from FY21,' the organization said (Wesfarmers Annual Report, 2020).
I anticipate that...
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