In the Grades and Feedback section of the Blackboard you will see you have been allocated a company name. You must only use the company you have been allocated.
Cashflow Analysis(9 marks)
Analyse the Statements of Cash Flows of your allocated company for 2019 (comparing to earlier years where relevant). Use the analysis checklist questions and points provided in Jennifer’s Topic 4 workshop to guide your analysis. You should also provide brief information about any significant business events and activities that help explain your observations from the cash flow statements and provide a conclusion evaluating the health of the company from a cash flow perspective.
Approximately 400 words.
Calculation of Ratios(6 marks)
Calculate the following six (6) ratios for the three years 2017 - 2019 (2016 financial information will assist you in calculating averages, where necessary). You are to use only those ratio formulas that are contained within the unit resources; i.e. in the prescribed textbook, study guide, Jennifer’s workshop slides and other content provided via the unit’s Learning Pathway.
For each of the ratios, you should:
Working Capital Management Analysis(8 marks)
Evaluate the working capital management of your allocated company.
Start your analysis by calculating the company’s cash conversion cycle (CCC) for the three years 2017, 2018 and 2019 using relevant ratios you calculated in Part B and additional ratios available to you in your company’s folder in the ACC00724 MySCU site.
Using these figures, evaluate the CCC and each of the areas that make it up with a view to identifying areas of strength and/or weakness. Give brief suggestions for actions the company could take to make improvements, noting any potential benefits and costs.
Approximately 350 words.
Further Company Analysis(12 marks)
Based on the ratios over three years you have calculated, along with additional ratios available in your company’s folder on the ACC00724 MySCU site, analyse and evaluate the company’s profitability, efficiency, liquidity, financial gearing and investment performance. Ensure you also provide an overall evaluation that links together your major findings for each category of ratios.
Approximately 750 words.
Note: Do not repeat any detailed analysis you may have done in Part C to analyse and evaluate efficiency in Part D. However, you can use your conclusions from the Part C analysis to inform your evaluation of efficiency, other relevant areas of performance/position and overall.
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