Analyse financial statements to assess the financial position of the organisations

Order Instructions

Scenario

You have recently joined Penco, a small pension fund that aims to strategically

invest in low risk companies with a historically satisfactory return on investment.

Task 1 of 3 – Briefing Report (AC 2.1, 2.2, 2.3, 5.1, 5.2, 5.3)

Instructions:

As a junior analyst, your first task is to review the market and select two companies

listed on the London Stock Market and to access their financial statements. At the end

of the report you should make recommendations to Penco to invest.

Calculations and financial ratios supporting the recommendation should be appended to the

report for the board’s attention.

Your report should:

• Analyse financial statements to assess the financial position of the organisations.

• Recommend organisational decisions based on evaluation of financial statements

using financial ratios.

• Propose managerial recommendations on the strategic portfolio of the organisations

based on financial analysis.

• Apply financial appraisal methods to analyse competing investment projects for the

organisations.

• Justify strategic investment decision the organisations using relevant financial

information.

• Critically analyse strategic investment decisions using information.

Delivery and Submission:

• 1x Briefing Report (1000 words excluding supporting calculations and financial ratios

used)