Ratio Analysis Report of ASOS Plc: Financial Performance Evaluation

Learning Outcomes: Knowledge and Understanding tested in this assignment:

1. Evaluate the role and limitations of published financial statements and identify and use the information produced
2. Interpret key financial performance indicators and be able to use financial information to formulate future plans

Learning Outcomes: Skills and Attributes tested in this assignment:

- Communicate effectively with financial and non-financial managers

- Present their ideas confidently and effectively on financial ratios

Feedback /Marking criteria for this Assignment

Performance will be assessed using HBS Grading Criteria. The Marking Scheme is shown in the assessment task. Guidance for improvement will be given in writing on the assessment feedback form within 4 weeks

ASOS Plc

Consider the consolidated financial statements in the 2020 Annual Report of ASOS plc.

I.Calculate a range of ratios for 2020 and 2019 to evaluate the financial performance of ASOS plc in terms of profitability, liquidity and efficiency for the year ended 31 August 2020 and 2019.  Calculate eight (8) ratios for each year that you think are useful, using the range of ratios covered in week 2 and 3.

II.Write a report (maximum 1,000 words) that interprets, comments on and evaluates the financial performance of ASOS plc by comparing the results of 2020 and 2019.

The title of the assignment:

Purpose of the assessment:

To prepare a report that interprets, comments on and evaluates the financial performance of a company based on ratios calculated.

Introduction to the work: This assignment is based on the material taught in week 2 and 3.

Approach/steps to follow:

1.Calculate eight ratios that you think are useful, using figures from the annual report.

2.You should demonstrate an understanding of the ratios calculated, interpret the ratios and comment on the ratios.

3.Use the ratios calculated to evaluate the performance of the company

4.You will need to read around the topic in academic, professional and business journals. Your textbook will give a basic introduction only.

It is essential:

That you include your student number, but NOT your name, on your work. You must attach the cover page which is at the end of this document showing:

That each of the sections is covered (if not, there will be zero mark for that section)

That you understand the topics as well as demonstrate an ability to perform calculations accurately.

Think about the annual report before you start calculating

Read and use a range of recent academic, professional and business resources, e.g. books, journals, professional or business websites

Start in good time and ask if you need help. Your tutors will help you understand the concepts but will not deal directly with questions about the assignment.

Do NOT reference Wikipedia, Investopedia or tutorial websites. If you use them for background information you MUST follow up the points in good quality sources.

Paraphrasing others’ views and giving the relevant source, is generally better than using direct quotes.

Check grammar, use vocabulary you understand, use UK spelling and try to use PEEEL (Point, Evidence, Explanation, Example, Link) to structure your main paragraphs (refer to CASE Essay writing tips)

Pay attention to presentation – your work should look professional. You should use double spacing between paragraphs and number your pages.

This task is worth 50% of your module; your study of these topics and your work on the assignment should reflect 75 hours work.

Detailed Brief for Individual Assessment

Assignment Title: ASOS plc

Description of the assignment: Ratio Analysis

Any specific instructions:

Submission of your report is by Turnitin . Turnitin is used to highlight student collusion or similarities to other work.