GSBS6200: Conduct an analysis of the financial statement of a real-world company: Financial and Management Accounting, Assignment, UON, Singapore

Objectives of the task

• Apply theory in practice
• Conduct an analysis of the financial statement of a real-world company – to look beyond the numbers
• Demonstrate written and oral communication skills in interpreting financial

The task

• Select two companies in the SAME industry listed on the Australian Stock
• Your analysis will be based on the latest available three years annual reports (full year’s report) which include the financial statements (Balance sheet, Income statement, and Statement of cash flows) and explanatory notes of your selected
• You must inform your lecturer of the names of the two companies and the industry they are in.
• No two groups can work on the same companies (if two groups pick the same companies the lecturer will use a first come first served basis only to permit one group to work on the two companies)

You will need to collect data for the latest available three years for the selected companies from the financial statements and other relevant information and conduct:

1. Horizontal analysis of the Income Statement and Cash Flow Statement
2. Vertical analysis of the Income Statement and Balance Sheet
3. Ratio analysis (using two ratios for each of the five ratio categories:- e., two ratios for profitability; two ratios for efficiency, two ratios for liquidity, two ratios for capital structure analysis and two ratios for market performance)
4. A fundamental analysis of the companies needs to be In the analysis, you will need to start from the company level, i.e. identifying any company-level activities that affect the companies’ performance as you calculated in (a), (b) and (c) above. Further industry or macro-environment level factors can also be considered. Your analysis is to help a prospective investor decide in which of the two companies to invest all his/her life-time savings.
5. An in-depth evaluation of the company’s overall outlook for the future taking into consideration relevant factors including those of the industry.

Besides the text, other alternate sources may include the following but your research should not be limited to these:

• Company websites (usually under “investor relations”)
• Yahoo finance http://au.finance.yahoo.com/ (company profile, downloadable share price data)
• Australian Securities     Exchange     asx.com.au    (Company     profile,     ASX announcements)
• Reserve Bank of Australia rba.gov.au (Government bonds and interest rates)
• AFR market tools http://afr.com/markettools/ (share market data including dividend information)
• IBIS World ibisworld.com.au (industry, market and company research)
• Other databases available at UON library (DatAnalysis).