Analyzing Financial Information from Financial Statements using Various Analytical Tools and Critical Thinking: Financial Analysis & Reporting Report, IUMW, Singapore

Learning Outcomes

MO4 Analyzing financial information from financial statements using various analytical tools and critical thinking

MO5 Critically analyze financial accounting information for making a strategic business decision.

Task Description:

The purpose of this assignment is for you to select a company to invest in the near future. Therefore you are required to write a brief report of approximately 4,000 words, using sources from relevant journals, articles, and textbooks, and prepare the report based on the following recommended format and contents.

ASSIGNMENT OUTLINE

You are required to:

Select a company from Bursa Malaysia. (The students should seek approval from the lecturer on the company that he or she has selected and this is on a first come first serve basis. No student is allowed to choose the same company.)heineken malaysia berhad – please use the company figures to do this report.

the analysis is crucial in this assignment followed by citations and references. every analysis needs to be backed up by citations. pls, keep this in mind.

The format and content of the report as shown below can be used as a guideline:

1.0 Introduction– brief intro what’s this assignment all about

1.1 Company’s background -2 paragraphs only

1.2Company’s announcement– can get from Bursa Webpage/annual report (current/past announcement)

1.3 Business model and selection– what type of business model the company is using. If this company has value chain describe its value chain (will add value to assignment marks) Must have citations

1.4 Company’s announcement and its effect on financial performance

and corporate sustainability– how the company’s announcement in 1.2 has affected/impacted the share prices? discuss bout the long term or short term of the company’s sustainability followed by citations on impact factor. *crucial

2.0 Qualitative Analysis / Environment and Industry Analysis( narrative analysis – must read between the lines. Looking at each factor line by line. Identify the flaws and argue on them. Look upon this part. Google up on Chairman’s report. *very important. Not from the annual report alone. From announcements and media coverage, court cases debate against the chairman’s report /disclosure) can discuss the industry analysis here. Citations are a must

2.1 Current Economy Overview – can get from the edge newspaper /bursa/journals. what’s the current economic overview in this current industry .any legit sources with citations. Malaysian and global perspective.

2.2 Industry Overview – talk about your company’s industry with citations

2.3 Legislation, incentive, and policy– if there’s any new legislative/ incentive or policy   due to covid – citations

2.4 The Competitive Forces Analysis/Porter’s Five Forces– your company’s competitiveness. How competitive is your company? citations

2.5 SWOT Analysis – on your company.To be done in table form.

3.0 Financial Analysis – balance sheet, profit, and income statement & cash flow

3.1 Trend Analysis 3 years revenue /profit /PPE

3.2 Ratio Analysis – to include everything in the attachment 1.All the ratios’ calculations must be shown in a table and detailed analysis with citations is crucial for marks. In the report just justify the figures followed by citations. All the ratios that need to be calculated and their formulas will be included below.

Ratios are to be presented in table form. As below.all ratio calculations are to be included in appendices.

3.3 Stock performance and valuation– look at Bursa Malaysia. Share prices increasing or decreasing. Stock performance in 2020. What was the highest price and lowest price of the share? Must use the current performance from Bursa. citations

4.0 Conclusion– how do you think the company is performing? What do u think the future of the company looks like? Do u think the company is drifting away?do you think the pandemic has caused some issues for this company?valuation of should you buy this company shares or not? Yes, pls justify. No, please justify.

4.1 Recommendation

4.2 Limitations– no direct access to the company. Look at the annual report and bursa and secondary information. No first-hand information from the management of the company. This is a must to include. Add on another limitation.

5.0 References

6.0 Appendices

Chairman’s Statement

General Announcement

Definition of Ratios / Computation of ratios

Statements of Financial Position and Comprehensive Income

Marks allocation  – very important.

Marks is allocated as shown below:

(i)  Introduction (20 marks)

Should consist of the background of the selected company/group, business model, and how the company announcements affect the financial performance and corporate sustainability.

(ii) Qualitative Analysis / Environment and Industry Analysis (20 marks)

Discussion should begin with the assessment of economic condition affecting the company, then industry analysis followed by company analysis.

(iii)Financial analysis (40 marks)

Comprises of trend analysis, accounting analysis, and ratio analysis. Candidates are expected to evaluate the performance of the selected company. Marks are awarded for correctly calculating the relevant ratios, particularly the liquidity ratios, profitability ratios, efficiency ratios, leverage ratios, and investment ratios, and for critically analyzing each of them by years(Comparison to rivalry or industry average attracts higher marks). The final part would be applying a simple valuation technique to determine whether the stock is a good buy.

(iv)Conclusion

The conclusion includes the recommendation and limitation of the study. Justify your selection of the company based on the company announcements, strategic/competitive analysis, ratio analysis, stock performance and valuation of the company stock.