Financial Analysis For Managers
Intended learning outcomes:
1. Evaluate the performance of a company using various financial analytical tools.
2. Analyse different patterns of cost behaviour and apply cost-volume-profit analysis to business decisions.
3. Select and apply investment appraisal techniques appropriately.
4. Evaluate the performance of business units using both financial and non-financial measures.
Q1. You are hired as a financial consultant by the Government to evaluate the financial performance of a company listed in the Muscat Securities Market (MSM)/GCC Market by taking into consideration the following instructions.
· Select a company listed in Muscat Securities Market/GCC Market (preferably other than banking and investment companies or Holding companies).
· Collect annual financial reports of the chosen company for five consecutive years.
· Use ONLY annual financial statements for analysis. Avoid using quarterly statements.
· Provide references for the data collected (use Coventry Harvard style of referencing). Company websites can also be used for data collection.
· From the financial statements and additional information collected, complete the below mentioned tasks.
A. Compute the following ratios for each year.
· Liquidity Ratios – minimum of two ratios
· Profitability Ratios – minimum of two ratios
· Efficiency Ratios – minimum of two ratios
· Capital Structure Ratios (Gearing) – minimum of two ratios
· Market Ratios (dividend, PE etc.) – minimum of two ratios
B. Based on the above computations and literature review about the technique and ratios used, analyse the liquidity, profitability and efficiency position of the company. Provide recommendations for improvements.
C. Based on the ratios and any other information contained in the financial statements and appropriate LR about the ratios used for analysis, would you recommend buying these companies’ shares. Why or why not? Justify.
Write a reflection of your experience on attempting the online course mentioned below: Your reflection may include, your individual experience, What did you learn from this online course, how much progress you made in the online course, strengths of the online course, challenges you faced in attempting the online course etc. It is mandatory to attach a few screenshots of the course in the appendix which clearly shows your registration details and your progress in this online course.
A.Evaluate the projects using Net Present value Method and profitability index method.
B. Based on the above analysis and on the basis of the relevant literature review about the techniques used to analyse the projects, which project would you recommend and why.
C. Based on appropriate literature review, analyse the non-financial factors (minimum of 5 factors) to be considered while conducting project appraisal.
It is not possible to apply for a second extension for the same piece of work. If you submit work after the published deadline, and have not formally requested and been granted an extension, the following marking penalties will be applied:
a) Work submitted up to 1 week (5 working days) after the due date for submission will lose 10% of the mark.
b) Work submitted after this, but up to 2 weeks (10 working days) late will lose a further 10% of the mark (i.e. 20% overall).
c) Work tendered for submission more than 2 weeks (10 working days) after the due date will not be accepted and an absence will be recorded for the assessment concerned. This will count as a failed attempt and may result in you failing the module overall.
Research and other enterprise activities shall be conducted by maintaining the high ethical standards consistent with national and international standards and conventions.
· Any research at MEC that is categorized as high-risk research shall be subject to review and approval by the Research Ethics and Biosafety Committee.
· Research activities involving collection of human or animal tissues and manipulation of microbial, animal or plant cells shall be subject to review and approval by the Research Ethics and Biosafety Committee.
· Participants involved in research must be informed about the purpose of research and intended uses of research findings. Written consent must be obtained from people involved prior to the commencement of research.
· Data obtained from participants must be treated with high confidence and should be used only for the intended purpose of research.
· Research supervisors must take necessary steps to ensure research integrity and quality of their students’ research.
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