FUNDAMENTALS OF VALUE CREATION IN BUSINESS ASSIGNMENT – ACCOUNTING Requirements – 1. The following..

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FUNDAMENTALS OF VALUE CREATION IN BUSINESS ASSIGNMENT – ACCOUNTING

Requirements –

1. The following is a list of companies from the latest ASX. These companies are carefully chosen to suit this project and the learning outcomes of the unit.

ASX Code

Company

GICS sector: Health care

RHC

Ramsay Health Care

SHL

Sonic Healthcare Limited

PRY

Primary Health Care Limited

GICS sector: Information technology

XRO

Xero Ltd

IRE

Iress Ltd

IRI

Integrated Research Ltd

GICS sector: Consumer discretionary

WEB

Webjet Limited

FLT

Flight Centre Travel Group Limited

2. You are pre-assigned with a company by your teaching lecturer. If you are working in a group, and each member is assigned with a different company, you must choose only one company for your group.

3. If you choose to complete the assignment in a group, please observe that the maximum number of members in a group is 4.

4. Download the company financial data from DatAnalysis (also known as Morning Star) for your analysis. The data shall include items from balance sheet, income statement, cash flow statements and relevant ratios for the latest 6 years. Note that you will have to download 1 year extra to be able to run a 5-year analysis. You may want to refer to DatAnalysis data download guide in this document.

Tasks –

1. For the latest 5-year period, analyse the following aspects of the companies:

Ratio categories

Example of ratios to analyse

Profitability

e.g., 1. Return on equity (ROE), and 2. Net profit margin.

Liquidity

e.g., 1. Current ratio, and 2. Acid test (also known as quick ratio).

Solvency

e.g., 1. Debt ratio, and 2. Net interest cover.

2. Present your analyses in a form of a professional report for a manager of a company. Charts and tables are encouraged. Your report should have the following sections (maximum possible marks are in the parentheses).

2.1. Cover sheet which clearly identify all group members, class/campus, and your teaching lecturer.

2.2. Executive summary.

2.3. Introduction.

2.4. Profitability analysis.

2.5. Liquidity analysis.

2.6. Solvency analysis.

2.7. Conclusion.

3. Other criteria for the report: Must not exceed 4000 words, excluding table of content, references and appendices, but inclusive of item 2.2 to 2.7. The report will be graded on the first 4000 words of item 2.2 to 2.7.