Performance evaluation

Performance evaluation:Analyse the historical (for the last 5 years) performance of a listed company and present your findings in the form of a report, which will cover both qualitative and quantitative performance elements in a logical cohesive format. Please note: If you are working for a company listed on the stock exchange, use this opportunity to complete the exercise on that company. Otherwise, feel free to value a competitor or a company that interests you. However, note that the company you select must be listed on a stock exchange and have a history of paying dividends. The qualitative component of your discussion should include BRIEF background information on the company including how they are placed within the industry, and a BRIEF overview of the recent stock price movements for the company. The quantitative component should include an initial analysis of trends in the items contained in the profit and loss statements and balance sheets, followed by an analysis of important ratios measuring different aspects of the company performance: Current ratio P/E ratio Net Profit Margin ratio Return on Total Assets Debt ratio Inventory Turnover (wherever relevant). Your analysis should highlight the important changes within these ratios over this period and identify the reasons for these changes. Your analysis should include the strengths and weaknesses of the company (i.e. benchmark your chosen firm against industry averages). Taking into account the quantitative and qualitative analysis you are then required to make a recommendation on whether it will fall into one of the following two categories: Invest in the company Do not invest in the company. 2. Stock (Equity) Valuation exercise: You are required to calculate the value of a share of the listed company used in the performance evaluation part above, using the dividend discount model. Assume the company chosen from above has a 5% dividend growth rate and the required rate of return is 10%. Go to and find the latest share price. Compare that stock value with the current stock market price. Are there any differences? You are required to explain these differences. Please note: In order to start this assignment you will need to extract the financial statements (comprising five years information) of your chosen publicly listed company. We recommend you familiarise yourself with the IBIS world Market Research

database available under the ‘Research’ drop-down menu in the header on the student learning portal. This tool provides the financials and other company information plus industry averages. Analyse the ratios and the other data (as requested to be calculated above) from the financial statements to evaluate the company’s operations and performance. The quality of this analysis is very important – much more important than the calculation. You should focus on analysis and the implications of the analysis on the decision. Place the ratio calculations in an appropriate appendix so that the body of the report only states the result of the calculation with interpretation (e.g. ‘…argument is supported by a debtor’s collection period of 26 days’) and not the process of calculating it. Pay attention to the presentation of this appendix so that it is user friendly and it is easy to locate any ratio. Include referencing so that you clearly acknowledge your sources of information. Your sources should include journals, books and may include articles from the financial press, financial commentators, and internet resources that you may have used to strengthen your analysis. Remember to submit a hyperlink to the annual reports within the reference list in your assignment. Submit Your Assignment Current Status: Not Submitted Subject: Financial Management [712FMGT] Subject Dates: 18-12-2015 to 28-01-2016 [AIB-DL] With online submission of your assignment, this means that you no longer need to include a cover sheet. However, all assignments (including Final Projects) must still include a title page, as outlined with the Style and Assignment guides including: your name student ID number subject title AQF level Word count Important Assignment Instructions The required word length for this assignment is 2500 words (plus or minus 10%). In terms of structure, presentation and style you are normally required to use: – AIB standard report format; and – AIB preferred Microsoft Word settings; and – Harvard style referencing (which includes in-text citations plus a reference list). These requirements are detailed in the AIB Style Guide. Reference lists for AIB assignments / projects normally contain the following number of relevant references from different sources: 6-12 (for MBA assignments). All references must be from credible sources such as books, industry related journals, magazines, company documents and recent academic articles. Your grade will be adversely affected if your assignment contains no/poor citations and/or reference list and also if your assignment word length is beyond the allowed tolerance level (see Assessment Policy available on AIB website). Useful resources when working on your assignments include: – AIB Online Library – AIB Assignment Guide – AIB Style Guide Select the link for the assignment assessment criteria – Please note that the new assessment criteria applies to all subjects starting on or after the 23 October 2015. Click to view info on Academic Integrity: Avoiding Plagiarism, Collusion and Other Issues â—„Learning OutcomesExaminationâ–º Skip Forums Forums Financial Management Discussion Forum Re: Calculator manual in exam Picture of AIB Staff AIB Staff Posted: 19 Jan, 08:28 Hi Darren Sometimes students use financial calculators and use above functions more… Latest News FMGT Assignment Deliverables Picture of AIB Staff AIB Staff Posted: 30 Dec, 13:10 Hi All, Hope you had a very good Christmas break. In response to a few querie more… Welcome to FMGT! Picture of AIB Staff AIB Staff Posted: 14 Dec, 10:50 Welcome to the Financial Management Forum! You will find thi more… Updated Learning Material for FMGT Picture of AIB Staff AIB Staff Posted: 23 Nov, 13:45 Hi All, As you may not have looked at your learning material for Financial Mana more… Skip My Subjects My Subjects Current Subjects 712FMGT_1 – Financial Managemen… 705MMGT_1 – Marketing Managemen… AIB – Support Past Subjects 711SHRM_1 – Strategic Human Res… 710OMGT_1 – Operations Manageme… Australian Institute of Business © 2014 | Privacy

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