Financial Accounting Assignment -
Task: This assessment is an individual task in which the student is required to write a report on a topic included in this paper.
PURPOSE - Financial Statement Analysis - To calculate and analyse financial ratios using actual reported data.
REQUIRED - Given the financial statements and the additional information, analyse and discuss the financial performance and position of Specialty Fashion Group Limited. You should refer to the notes to the financial statements and the Director's Report for further details and clarifications of changes in the financial statements. (You may find the Full Year Results CEO & CFO Presentation useful for this assignment).
Your analysis should be supported by profitability, liquidity, gearing and other appropriate ratios from Chapter 18 of the prescribed textbook.
Calculate and analyse financial ratios (percentage and ratio analysis)
Use the 2017, 2016 and 2015 published annual reports to obtain the financial statement figures needed to calculate the ratios (where there are consolidated accounts, use the consolidated amounts). In addition, students are strongly advised to:
- perform horizontal and vertical analyses of the Statements of Financial Position (Balance Sheets) and Statements of Profit or Loss (Income Statements) for the company
- read all parts of the Annual Reports
Instructions - Your report should calculate and analyse the following ratios, in clearly identified separate sections:
Profitability
- Rate of return on net sales
- Rate of return on total assets
- Asset turnover
- Rate of return on ordinary shareholders' equity
- Earnings per share (given in the Annual Report)
Liquidity
- Working capital
- Current ratio and Acid-test ratio
- Inventory turnover and Days in inventory
- Gross profit percentage
- Accounts receivable turnover
- Days' sales in receivables
Gearing
- Debt ratio
- Debt to equity ratio
- Times interest earned ratio
Your analysis should include:
Year-to-year (2017 and 2016; 2016 and 2015) comparisons (horizontal analysis). Use the Director's Report and the Notes to the Accounts to further justify your answer.
The components of each ratio should be investigated to determine the significant or determining factors in any change to the ratio.
These significant factors should then be investigated to determine (to the extent possible) the cause and sustainability of their change (refer to example below).
Attachment:- Assignment File.rar