Financial Management Analysis

Assessment Type: Individual Assignment worth 40 % of the module
Indicative Assessment Requirements for the Module;-
Word Limit for the Assessment: 3000 words

Learning Outcomes:
• Use analytical techniques and appropriate electronic aids to assist in contemporary financial decision making,

• Analyse the impact of economic, legal and tax changes on the strategic and financial position of companies, appreciate the ethical issues of financial management within business organisations.

Assignment Brief:

1. Task 1: Selection of Companies
As a consultant, you have been asked to report upon the financial performance of any two (2) companies from the following business sectors: Pharmaceuticals & Biotech, Oil & Gas, Telecom Services or Engineering & Machinery. From their respective annual reports or other suitable financial databases (such as Financial Analysis Made Easy-FAME; Morning Star; Osiris; etc.) obtain relevant financial information for your chosen companies for the last 5 years.

2. Task 2: Extraction of ratios
From above financial platforms, extract the following financial ratios (or the necessary information or variables to calculate the ratios) for the 2 companies over a period of 5 years as follows:
• Profitability
• Liquidity
• Working capital management
• Capital structure
• Stock market performance

Task 3: Discussion of ratios
Evaluate and analyse the performance of these two companies using the ratios extracted over the period under consideration (use graphs of the ratios extracted to support your analysis). Recommend which of these companies would be a good investment (with the necessary justification)

Task 4: Weaknesses of Ratios
What are the main weaknesses associated with ratio analysis?

Assessment Presentation Requirements:
The submission of your work assessment should be organised and clearly structured in a report format. Maximum word length allowed is 3000 words, excluding words in Charts & Tables and in the Appendices section of your assignment. Student is required to submit a typed-written document in Microsoft Word format with Times New Roman; Arial; Calibri of size 12’ for the body text and automatic table of contents for using the relevant headers. The line spacing 1.5. This assignment is worth 40% of the final assessment of the module.

Indicate the sources of information and literature review by including all the necessary citations and references adopting the Harvard Referencing System.

Please refer to the Student Handbook for information on plagiarism
Plagiarism involves taking someone else’s words, thoughts, ideas or essays from online essay banks and trying to pass them off as your own. It is a form of cheating which is taken very seriously.

Recommended Report Writing (Max 3000 words) & Marking Scheme

The contents may be as follows:

1. Introduction: [Max 200 words & Max marks allocated is 7]
This should clearly set the purpose of the assignment; address the
methodology and source of information; the companies chosen

2. Rationale for the choice of the Companies:
[Max 300 words & Max marks allocated is 10]
Provide the necessary critical justification for choosing these companies.

3. Performance Analysis [Max1500 words & Max marks allocated is 50]
This should be carried out using the ratios extracted for:
Working capital management
Capital structure
Stock market performance

Comparative commentaries; overall assessment and viewpoint based on your analysis. The discussion should be supported with the relevant literature and be critical in nature.
Summary of analysis: [to help provide relevant recommendations]
Provide a summary for the analysis carried out in the form of table with
comments within the table.

4. Limitations of the method used to perform the analysis:
[Max 500 words & Max marks allocated is 10]
This may be on the weaknesses associated with the use of ratio analysis.

5. Conclusion & Recommendation:
[Max 500 words & Max marks allocated is 15]
Ensure your conclusion and recommendation are justified and supported
by facts. These should be a logical and based on the evidence contained
in the main body of the report.
6. Reference List
7. Appendices

Overall presentation: referencing, visuals, grammar, pagination, spacing, tables, table of contents, appendices etc. (Max marks allocated is 8)