Alimentation Couche-tard Company Analysis & Assessment

The assignment based on the Alimentation-couche-tard company and I am attaching a link to access the reports to the parts.

 

For business strategy analysis, accounting analysis, financial please have it in point form and main ideas but on prospective analysis please complete the analysis for this correctly.

 

Team Project: Public Company Analysis & Assessment

 

This assignment is designed to develop the following CPA Competencies: CPA Enabling Competencies (Professional and ethical behaviour; Problem-Solving and Decision-making; Communication – oral and written; Self-Management; Teamwork and Leadership) and CPA Technical Competencies (Financial Reporting; Strategy and Governance; Management Accounting; Finance) 

Your task as a team is to analyse a Canadian company named Alimentation Couche- tard AKA Circle K and Mac’. Prepare both a written research report and in-class presentation to share the findings of your analysis and assessment.

To complete this task, you will use the 4-step process as laid out in Palepu et al’s text, Business Analysis and Valuation (see Chapter 1 pages loaded on BB under Financial Statement Analysis and refer to the video and ppt walking through the steps).

1.Business strategy analysis

2.Accounting analysis

3.Financial analysis.

4.Prospective Analysis

 

Role: The purpose of this evaluation is to advise one of your firm’s longstanding clients whether they should invest further in this company or divest their holdings (they currently own 5% of the company) before they retire from their 35 year career as a medical doctor.

Develop a report that addresses the following detailed elements. Provide an appropriate introduction and conclusion that will capture the readers’ (the doctor’s) attention and lead them to better understanding of the past performance of the public company and its outlook for the future. (5 marks)

Provide background information on the company, its positioning in the industry and market, and its competitive strategy (be sure to identify its position relative to other key industry players).

 

Use information obtained from the most recent annual report, MD&A and at least one press release (summarize and explain why the press release is relevant). (15 marks) 

Evaluate the company’s financial statements, paying particular attention to areas where the company has made accounting choices (look at key accounting policies and estimates, changes in accounting choice) and evaluate the quality of disclosure.

 

Be sure to identify any areas of concern or “red flags” that you feel are important to understanding how well the statements reflect the business, its industry and its activities/ performance to date. (15 marks)

Calculate and explain (in ways that are understandable to your reader) the company’s performance in terms of horizontal, common size (aka vertical) and ratio analysis on a multi-year basis (minimum 2 years comparatives). Identify the factors or drivers that have contributed to the trends observed in the data.

 

Evaluate performance profitability, operating efficiency, liquidity and capital structure (financial leverage) measures/ ratios. Provide opinions/ conclusions on overall financial health of the company.(15 marks)

Synthesize the analysis completed in steps 1 to 3 to determine your evaluation of the company’s overall value and provide a forward-looking projection of the potential for investment growth or annual return.

 

Consider how others have valued the company to date (for e.g. you might address the company’s stock performance over the most recent year available) and speculate on the future outlook for the company to assist the investor’s decision-making. (10 marks)

Provide an investment/ divestment recommendation (one or the other) with summary rationale (at least four points) for why you selected the particular company for investment. (5 marks)