Analyst Report of Standard Chartered plc: Financial Analysis and Corporate Evaluation

Business Area, Competitors, and Industry Overview

You are required to write up an analyst report of no more than 4000 words. In your report, provide comments and analysis on the financial statement of a FTSE 100 company to address the following points: 

The broad business area of the company, its competitors and the nature of the industry it operates within,

 

Provide an overview of the selected company’s corporate strategy. What are the key risks of the company’s strategy?

 

Present an analysis of the company’s financial statement to cover all categories of ratios discussed in class.

 

Comment on the firm’s accounting policy(ies). In the last five years has there been any change to the accounting policy(ies)? Comment on any impact of such changes in accounting policy(ies) on the selected company’s financial performance and financial statements for the selected period.

 

Present an evaluation of the selected company’s ratios for the past five years, making use of both financial statement data and segment data.

 

What are the primary drivers of the company’s performance? How does the company’s performance compare to those of similar companies within it’s industrial sector? (Download this data from the databases available on the library webpage. Attach your data as a file and send by email to the lecturer ahead of your final submission)

 

Summarize the key findings of the financial analysis in a format and structure suitable for presentation at a board meeting.

 

Taking into account the five-year analysis, comment on the suitability of the company as a potential investment for an international hedge fund.

 

Comment on any relevant information to assist the hedge fund manager in his decision making (Consider among others, profitability, liquidity, dividend policy, and market risks).

 

Comment on the company’s disclosure on ethics and corporate governance.

For any essay style answers and the written report they will be assessed on content, writing style and originality.

Clarity of argument and thoughts

 

Knowledge and interpretation of financial information (no marks awarded for calculations).

 

Evidence of applying relevant theories to analysis of the financial statement

 

Use of examples and illustrations to support analysis 

 

Professional format for presentation

 

Structure, that is use of paragraphs, headings and sub-headings to convey the analysis of the financial statement in a clear manner

 

Bibliography (in the case of written report).

On successful completion of this assessment, you will be able to:

1. Assess the critical features of Statement of Financial position that are crucial to the valuation of equity
2. Measure the effect of economic, financial and accounting variables on equity prices
3. Evaluate the consequences of operational and financial decision on equity prices
4. Judge the significance and role of capital structure on firm valuation
5. Prepare a report on the valuation of firm equity both within regional and international context

6. Lead by Example – have high levels of awareness, emotional and social intelligence, empathy and compassion, and able to identify mental well-being in others.  Works collaboratively enabling empowerment and delegation. Acts with humility and authenticity is credible, confident and resilient.
7. Judgement and Challenge - Takes personal accountability aligned to clear values.  Demonstrates flexibility and willingness to challenge when making decisions and solving problems. Instils confidence demonstrating honesty, integrity, openness, and trust.
8. Courage & Curiosity - Is confident and brave, willing to innovate, seeks new ideas and looks for contingencies. Manages complexity and ambiguity, comfortable in uncertainty, and is pragmatic.
9. Valuing Difference - Engaging with all – is ethical and demonstrates inclusivity, recognising diversity, championing, and enabling cultural inclusion. Empowers and motivates to inspire and support others.  
10. Professional - Reflects on own performance, demonstrates professional standards in relation behaviour and ongoing development. Advocates the use of good practice within and outside the organisation

11. Apply Information technology in equity valuation and the calculation of risk in equity trading.
12. Devise and execute complex equity trading strategies under a range of different circumstances.
13. Evaluate and judge the impact on equity valuation and balance sheet under different scenarios.
14. Work both individually and collectively to solve a given problem
15. Locate, summarise and synthesise a range of information from electronic data sources relevant to firm finances and firm balance sheets.

1. Evaluate the theoretical basis of modern equity valuation and the concepts behind financial reporting
2. Examine the impact of market and accounting based factors on the performance of firm equity value
3. Devise strategies to minimise the risks associated with equity valuation and issuance of equity in different sectors of the economy
4. Explore different approaches to using financial analysis to forecast future investment opportunities
5. Prepare students for the uncertain financial environment of asset valuation