You are an Investment Analyst at a large investment company and have been asked to analyse a FTSE 350 company

Main points to be covered

My Company : Wh Smith

Take any Competitor

Comparison of ratios to at least one competitor (teams will choose a relevant competitor themselves)

Need the comparison along with the graphs

 RATIO ANALYSIS

I. Profitability Ratio:

1. Return on Capital Employed (ROCE):

2. Return on Equity (ROE):

3. Capital Turnover Ratio:

4. Net Margin Ratio:

5. Cost of Sales Ratio:

II. Efficiency Ratios:

1. Inventory days:

2. Trade Receivable Days

3. Trade Payable Days

4. Asset Turnover Ratio

III. Liquidity Ratios

1. Current Ratio

2. Quick Ratio

IV. Leverage Financial Ratios

1. Debt to Equity Ratio

2. Gearing Ratio

3. Interest Coverage Ratio

V. Investment Ratios

1. Earnings per Share (EPS)

2. Price Earnings Ratio (PE)

3. Dividend Cover Ratio

4. Dividend Yield Ratio

Recommend ONE initiative based on your ratio and comparative analysis that the target company could take in order to improve future profitability. Make whatever assumptions you wish [stating them clearly] and estimate the impact on relevant ratios giving numeric examples.

A client of MWF  is considering purchasing 10% of your target company’s shares. Use Book and Market values to estimate how much your target company is worth and then advise the investor how much 10% would cost. Advise the investor [giving at least three strongly justified reasons] whether it is a good investment 

YOUR CALCULATIONS – EXCEL SPREADSHEET. THE ORIGINAL SPREADSHEET MUST BE UPLOADED TOGETHER WITH THE REPORT.

Dublin Business School

Assessment Brief

Module Title:

Managerial Financial Analysis

Module Code:

B9MG009_2223_TMD4

Module Leader:

PHILIP HICKEY

Assessment Title:

Analysis of Financial Statements

Assessment Number (if relevant):

1

Assessment Type:

Formal Report to Board of Directors

Restrictions on Time/Length :

3,500 words (excl. Bibliography) +/- 10%

Individual

Groups Not Allowed

Assessment Weighting:

50%

Issue Date:

22nd May 2023

Hand In Date:

SUNDAY 9th July 2023

Planned Feedback Date:

4 weeks from submission date

Mode of Submission:

Moodle

Assessment Task

PLEASE REFER TO THE INSTRUCTIONS ON YOUR MOODLE PAGE REGARDING FORMATION AND SELECTION OF TARGET COMPANY FOR ANALYSIS.

Requirements

You are an Investment Analyst at MWF, a large investment company and have been asked to analyse a FTSE 350 company. You are required to prepare a report suitable for presentation to the board of directors of MWF who may or may not advise their clients to invest in the FTSE 350 company.

You report should:

1. Analyse and discuss your target company’s financial and operating performance over the last 3 years. Your analysis will be supported by the following:

· SWOT and PESTLE Analysis

· Ratio Calculations (to include all ratios done in class)

· Explanatory comments on the results of your ratios

· Trends should be identified and analysed

· Comparison of ratios to at least one competitor (teams will choose a relevant competitor themselves)

· External sources – print media, professional investment analysts, market commentary etc. 10 marks for each component = 60 marks

2. Recommend ONE initiative based on your ratio and comparative analysis that the target company could take in order to improve future profitability. Make whatever assumptions you wish [stating them clearly] and estimate the impact on relevant ratios giving numeric examples.

15 marks

3. A client of MWF is considering purchasing 10% of your target company’s shares. Use Book and Market values to estimate how much your target company is worth and then advise the investor how much 10% would cost. [10 marks]. Advise the investor [giving at least three strongly justified reasons] whether it is a good investment [15marks]

25 marks

Total = 100 marks

WHAT YOU MUST SUBMIT [NB WITHOUT THESE YOUR ASSIGNMENT WILL NOT BE GRADED].

1. YOUR GROUP’S REPORT [NB ONE COPY PER GROUP ONLY!!] – WORD OR PDF –

NBB: COVER PAGE TO INCLUDE THE NAME OF THE TARGET COMPANY, THE NAMES AND STUDENT NUMBER. THE REPORT SHOULD COMPRISE A COVER PAGE, A CONTENTS PAGE, AN EXECUTIVE SUMMARY, THE REQUIRED CRITERIA PER THE BRIEF, YOUR REFERENCES AND ANY APPENIDCES RELEVANT TO THE REPORT.

2. YOUR CALCULATIONS – EXCEL SPREADSHEET. THE ORIGINAL SPREADSHEET MUST BE UPLOADED TOGETHER WITH THE REPORT.

3. MINUTES OF GROUP MEETINGS AND A ONE PAGE DOCUMENT COMPRISING A PARAGRAPH FROM EACH TEAM MEMBER SUMMARISING THEIR INDIVIDUAL CONTRIBUTIONS TO THE FINAL REPORT.

4. PDF OF YOUR COMPANY’S MOST RECENT ANNUAL REPORT

MARKS WILL BE DEDUCTED (5 MARKS FOR EACH INSTANCE) FOR FAILURE TO ADHERE TO THESE REQUIREMENTS

The lecturer has at their disposal, several software tools which [inter alia] compare each assignment with every previous assignment . Any instance of collusion / plagiarism will be dealt with severely.

Other Requirements :

1. Word count to be noted on front page of submission, together with student names and numbers

2. Late Submissions: assignments submitted after the deadline are penalised, as per regulations.

3. Extensions to assignment submission will be not be granted, other than in exceptional circumstances. To apply for an extension please go to http://www.dbs-students.com/Registrar/ and download the Assignment Extension Request Form. Once completed this form should then be returned to your Programme Leader, for approval.

4. Dublin Business School penalises students who engage in academic impropriety (i.e. plagiarism, collusion and/or copying). It is STRONGLY recommended that you attend a referencing advisory session [provided by the Library].

5. To prevent plagiarism please follow this link to the Harvard Style Referencing Guide – all referencing is required in this format.

http://issuu.com/dbslibrary/docs/harvard-referencing-guide/1?mode=a_p

(Guide on referencing is also available under DBS library guides at www.library.dbs.ie)

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Summary Requirement

Sr. No Category Ratios
1 Profitability Ratios ROCE – Return on Capital Employed
ROE – Return on Equity / Shareholders Funds
Capital Turnover
Net and Gross Margins
2 Efficiency Ratios Inventory Days
Trade Receivable Days
Trade Payable Days
Asset Turnover
3 Liquidity Ratios Current Ratio
Acid Test Ratio/ Quick Ratio
4 Financial Ratios Debt to Equity
Gearing
Interest coverage
5 Investment Ratios EPS
PE
Dividend Coverage
Dividend Yield

Consolidated Balance Sheet Coca

Consolidated Balance Sheet of The Coca Cola Company – FY 2018,2019 and 2020
USD ($) in Millions % USD ($) in Millions % USD ($) in Millions
CONDENSED CONSOLIDATED BALANCE SHEETS Dec. 31, 2020 Change Dec. 31, 2019 Change Dec. 31, 2018
CURRENT ASSETS
Cash and cash equivalents 6,795 5% p 6,480 -29% 🔻 9,077
Short-term investments 1,771 21% p 1,467 -28% 🔻 2,025
TOTAL CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS 8,566 8% p 7,947 -28% 🔻 11,102
Marketable Securities 2,348 -27% 🔻 3,228 -36% 🔻 5,013
Trade accounts receivable – Net 3,144 -21% 🔻 3,971 8% p 3,685
Inventories 3,266 -3% 🔻 3,379 10% p 3,071
Prepaid expenses and other assets 1,916 2% p 1,886 -8% 🔻 2,059
TOTAL CURRENT ASSETS 19,240 -6% 🔻 20,411 -18% 🔻 24,930
NON-CURRENT ASSETS
EQUITY METHOD INVESTMENTS 19,273 1% p 19,025 -2% 🔻 19,412
Other Investments 812 -5% 🔻 854 -1% 🔻 867
OTHER ASSETS 6,184 2% p 6,075 46% p 4,148
Deferred Income Tax Assets 2,460 2% p 2,412 -10% 🔻 2,674
Property, plant and equipment – Net 10,777 -1% 🔻 10,838 13% p 9,598
TRADEMARKS WITH INDEFINITE LIVES 10,395 12% p 9,266 39% p 6,682
GOODWILL 17,506 4% p 16,764 19% p 14,109
Other Intangible Assets 649 -12% 🔻 736 -8% 🔻 796
TOTAL NON-CURRENT ASSETS 68,056 3% p 65,970 13% p 58,286
TOTAL ASSETS 87,296 1% p 86,381 4% p 83,216
CURRENT LIABILITIES
Accounts payable 3,517 -8% 🔻 3,804 40% p 2,719
Other Payables / Accrued Expense 7,628 2% p 7,508 10% p 6,814
Loans and Notes Payable 2,183 -80% 🔻 10,994 -21% 🔻 13,835
Current maturities of long-term debt 485 -89% 🔻 4,253 -15% 🔻 5,003
Accrued income taxes 788 90% 🔻 414 1% p 411
TOTAL CURRENT LIABILITIES 14,601 -46% 🔻 26,973 -6% 🔻 28,782
NON-CURRENT LIABILITIES
LONG-TERM DEBT 40,125 46% p 27,516 8% p 25,376
OTHER LIABILITIES 9,453 11% p 8,510 11% p 7,646
Deferred Income Tax Liabilities 1,833 -20% 🔻 2,284 -3% 🔻 2,354
TOTAL NON-CURRENT LIABILITIES 51,411 34% p 38,310 8% p 35,376
THE COCA-COLA COMPANY SHAREOWNERS' EQUITY
Common stock, $0.25 par value; authorized — 11,200 shares; issued — 7,040 shares 1,760 0% 1,760 0% 1,760
Capital surplus 17,601 3% p 17,154 4% p 16,520
Reinvested earnings 66,555 1% p 65,855 4% p 63,234
Accumulated other comprehensive income (loss) (14,601) 8% p (13,544) 6% p (12,814)
Treasury stock, at cost — 2,721 and 2,738 shares, respectively (52,016) -0% (52,244) 1% p (51,719)
EQUITY ATTRIBUTABLE TO SHAREOWNERS OF THE COCA-COLA COMPANY 19,299 2% p 18,981 12% p 16,981
EQUITY ATTRIBUTABLE TO NONCONTROLLING INTERESTS 1,985 -6% 🔻 2,117 2% p 2,077
TOTAL EQUITY 21,284 1% p 21,098 11% p 19,058
TOTAL LIABILITIES 87,296 1% p 86,381 4% p 83,216

Consolidated Income St Coca

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Consolidated Income Statement of The Coca Cola Company – FY 2018,2019 and 2020
Part 1
USD ($) in Millions % USD ($) in Millions % USD ($) in Millions Pestle 770 500
CONDENSED CONSOLIDATED INCOME STATEMENT Dec. 31, 2020 Change Dec. 31, 2019 Change Dec. 31, 2018 SWOT 850 500
Revenues 33,014 -11% 🔻 37,266 9% p 34,300 Ratio 1700 1700
Cost of Goods and Services Sold (13,433) -8% 🔻 (14,619) 12% p (13,067) 3320 2700
GROSS PROFIT