ACC97003M Financial Analysis
Task:
Report Requirement
Prepare a report for the directors of BGC Ltd discussing the performance, liquidity and solvency of the company over a minimum of the last two years. Your report should include, but is not limited to, reference to your calculations of the following ratios:
i. Gross Profit Margin
ii. Net Profit Margin
iii. Return on Capital Employed
iv. Current Ratio
v. Working Capital Cycle
vi. Gearing
vii. Interest cover
Your workings should be included in the Appendix to the report. In the body of your report you should include the ratios you have calculated along with an appraisal of the company’s performance in the last two years.
Presentation Requirement
Provide a brief analysis of the current performance, liquidity and solvency of BGC Ltd based on your ratio analysis, highlighting any areas of opportunity or concern.
You are not required to include workings of ratios in your Powerpoint.
Report Requirements
Provide an analysis of the cash budget making recommendations for the directors to consider. Your recommendations should be fully justified.
Your recommendations could relate to any opportunities or threats you have identified from your analysis of the cash budget and should include:
• An analysis of the opportunity/ threat
• Implications for the company
• Alternative options for the organisation