• Select a publicly listed retailing company that is trading on the Australian Stock Exchange
• Download the latest annual report from their website
• Read the annual report to understand their overall performance
• Refer to other relevant sources such as the company website/media/news announcements, and gather further supporting evidence to gain an overall understanding of the company and micro and macroeconomic factors that impact their performance
Task 2)
• Research the industry characteristics of the market that the corporation operates within for both the current year and for the prior year
Task 3)
• Perform a ratio analysis of two financial periods (current year and prior year) for the entity
• Perform a ratio analysis of two financial periods (current year and prior year) for a key competitor within the same industry
Requirements:
Written Report – submit a referenced and cited 4 – 5-page report in proper report format, Times New Roman font, 12 point, 1.5-line spacing addressing the following:
i. The business
ii. Industry and financial statement characteristics
iii. Major elements of the balance sheet focusing on items of interest in your company’s industry
iv. Any accounts of particular interest in the balance sheet and whether they are affected by special events occurring in the comparative financial period
v. Major elements of the income statement focusing on items of interest in your company’s industry
vi. Any accounts of particular interest in the income statement and whether they are affected by special events occurring in the comparative financial period
vii. Complete a ratio analysis of the company (current year and prior year), and of the competitor (current year and prior year)
1. Gross profit margin
2. Profit margin
3. Current ratio
4. Quick ratio
5. Inventory Turnover
6. Accounts receivable
7. Debt ratio
8. Earnings per share
viii. Analyse and discuss the above ratios
ix. The overall performance of the company and whether you would recommend an investment in the chosen company over their competitor