You’re a group of investment analysts who work for a large investment consulting firm
Assignment Tasks
This assignment task is a written report and analysis of the financial performance of one selected listed company on the ASX in order to provide financial and investment advice to a wealthy investor.
This assignment requires your group to undertake a comprehensive examination of a firm’s financial performance based on update financial statements of the selected company.
Background
You’re a group of investment analysts who work for a large investment consulting firm based in Australia. There’s one big institutional investor from overseas that is interested in investing in the Australian market. You’ve been asked to choose one listed company the industry you think will have the most promising future for investment in Australia, then evaluate the performance of that company. Finally make a recommendation through your Report to the investor whether and why
they should or should not invest in the company.
Create your group’s “business name” under which your group will be providing the financial advisory services. Choose one listed company that your group will investigate/analyse for the purposes of possible recommendation to your client. The group should obtain all information about the selected company from this web site: www.asx.com.au.
Requirements
Obtain copies of Annual Reports including Income Statements, Balance Sheets, and Statement of Changes in Equity, Cash Flows Statements and Notes for three (3) financial year 2015-2016, 2016-2017 and 2017-2018. Your group can download these documents from the suggested web site using the firm’s code (example, BHP- for BHP Billiton Company, etc.). The assignment should cover the contents described in Part 1 to 7 bellows.
STAGES TO BE COMPLETED
1 Description of operation and comparative advantages of the selected company.
2 Identify and conduct a trend analysis with two groups of financial ratios, including profitability, and operating efficiency of the selected company.
3 Identify the marketable securities that are available in current assets of the company. Discuss using of these securities as an instrument for cash management by the company.
4 Perform a sensitivity analysis with data provided.
5 Identify and discuss the systemic risks and un-systemic risks that may affect performance of the selected company.
6 Calculate the dividend payout ratio and comment on the dividend policy of the chosen company through 3 years
7 Recommendation Letter
Hint
Accounts & Finance "The dividend payout ratio also known as the payout ratio is the ratio of the total amount of dividends paid out to shareholders relative to the net income of the company, i.e it's the percentage of earnings paid to shareholders in dividends. The amount that is not paid to shareholders is retained by the company to pay off debt or to reinvest in core operations. It...
"The dividend payout ratio also known as the payout ratio is the ratio of the total amount of dividends paid out to shareholders relative to the net income of the company, i.e it's the percentage of earnings paid to shareholders in dividends.
The amount that is not paid to shareholders is retained by the company to pay off debt or to reinvest in core operations. It is sometimes simply
Dividend payout ratio= Dividends paid divided by net income
Sensitivity analysis allows to assess the results and identify the inputs whose variation have the most impact on the key outputs. Process is to :
1. Choose Simulation > Sensitivity Analysis.
2. If more than one output is received, a drop-down list appears so that one can choose the output that one wants to examine.
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