Financial Accounting and Statement Analysis Assignment: Investor Report on a Listed Company

In this RMIT assignment, students act as advisers to Shark Tank style investors and analyse the published financial statements of their allocated listed company. Using four years of data from the DatAnalysis Premium database, they prepare vertical, horizontal and ratio analysis for 2023 to 2025, benchmark the ratios against competitors, and deliver a 1,000-word report, a formula-based Excel workbook and a presentation with a clear invest or do-not-invest recommendation.

Background

• Perform a financial statement analysis of your allocated publicly listed company over the last three years.
• Put yourself in the position of the Shark Tank and other potential investors, and create visual aids and toolkits that highlight the financial health of the company.
• Using the results of your numerical financial statement analysis, recommend to the potential investors whether to invest in the company.

Instructions

1. Download the Balance Sheet, Income Statement and relevant supporting data for the most recent four years of a listed company from the DatAnalysis Premium database (available through the RMIT Library Guide).
2. Perform the following analyses for the chosen company:
   • Vertical Analysis of the Balance Sheet and Income Statement for the years 2023 to 2025 (2023-2022, 2024-2023, 2025-2024).
   • Horizontal Analysis of the Balance Sheet and Income Statement, comparing each item to the previous year for 2023 to 2025 (2023-2022, 2024-2023, 2025-2024).
   • Ratio Analysis, including liquidity, profitability, solvency and efficiency ratios, comparing each item to the previous year for 2023 to 2025.
   • Comparisons with competitors or industry benchmarks.
3. Compile the work into a well-organised and visually engaging presentation.
4. Show creativity in visual elements and analytical approaches.
5. Emphasise the practical applications of financial statement analysis in decision-making for businesses and investors.

Deliverables

1. Report (1,000 words): 10% (Part 1)

• Introduction: provide an overview of the company, including its background, industry and key financial highlights.
• Vertical Analysis: present the results for the Balance Sheet and Income Statement for each of the three years. Use bar charts or pie charts to illustrate the proportion of each item within the financial statements.
• Horizontal Analysis: present the results for the Balance Sheet and Income Statement, comparing each item to the previous year for each of the three years. Use line graphs or bar charts to show trends and changes over time.
• Ratio Analysis: present the liquidity, profitability, solvency and efficiency ratios for each of the three years and compare them with those of the company’s competitors. Use tables and bar charts to display the ratios and comparisons.
• Conclusion: summarise the overall financial performance of the company based on the analysis, discussing significant trends, strengths, weaknesses and areas for improvement.

2. Visual Aids

• Include charts and diagrams such as bar charts, pie charts, line graphs and tables to support your analysis.
• Ensure all visual aids are clearly labelled and appropriately referenced within the report.

3. Excel Spreadsheet (must show formulas)

• Vertical Analysis: include calculations and results.
• Horizontal Analysis: include calculations and results.
• Ratio Analysis: include calculations and results, along with competitor comparisons.
• Ensure the spreadsheet is well organised and easy to follow.

4. MS PowerPoint Slides (for presentation with script)

Presentation 10% and Q&A (Reflection) 20% (Part 2).

Submission Guidelines

• Submit the report in PDF format.
• Submit the Excel spreadsheet with your calculations.
• Upload both files through the online submission platform by the specified deadline.