Financial Analysis Assignment: Company Recommendation and Growth Prospects

1.This assignment is worth 30%.

2.Your write-up should be double-spaced typewritten pages (with 2.5 cm margins and 12-point Arial font). Maximum 2000 words.

3.Regarding the submission, Word files only should be uploaded on Moodie. 

4.Assignments submitted after submission or extension date will be considered to be late and will be penalised 5% of the total available marks per day (or part of a day) for four days, and will receive a mark of zero after four days.

5.You have the option to submit your assignment once as a draft submission allowing to check for similarity prior to making a final submission. The draft submission option closes 24 hours prior to the due date and cannot be extended.

The following are required:

1. Assume that you are a trainee financial analyst. One of your family members, who is risk-averse, is interested in investing in a company. Make a recommendation with a rationale to the risk-averse family member as to whether he or she should invest in your assigned company.

2. Briefly provide any four pieces of non-financial information about the company and explain how this information could be useful in making a better financial decision about the company.

3. Using the financial information you have derived from the last three years published financial statements, analyse the company's future growth prospects.

4. Given your understanding of risk and return, assess the company's overall profitability, operating efficiency and market measures, and comment on the adequacy of the return it is providing to shareholders.

5. Does the management of the company appear to be doing a good job not only in "bottom-line" profits but in driving the revenues up and/or increasing margins? Does it seem to be using the assets efficiently?

6. Assess the risk profile of your selected company both in the short term and in the long term.

7. You are required to demonstrate your ability to address the issues raised and to support your arguments with appropriate data.