Published September 17, 2024 by

You are currently working as a junior financial analyst for a private consultancy firms Partners

Assessment Task Description:


You are currently working as a junior financial analyst for a private consultancy firms Partners. SCMB Partners has a strong reputation for helping organizations (their clients) understand their current financial performance within each client’s given market. Lately, SCMB has also undertaken advisory services for clients who wish to provide more value relevant information on the client’s environment, social and governance (ESG) activities by way of integrated reporting (IR) in their annual reports.

According to International Integrated Reporting Council (2013, pp.733), integrated
reporting is defined as “concise communication about how the organization’s
strategy, governance, performance and prospects in the context of the external
environment led to creation of value over the short-medium, and long term” SCMB Partners’ key strength comes from the ability to add significant value to clients by providing a clear understanding of financial performance and their clients’ ESG responsibilities as well as providing solid recommendations to executive-level managers who do not have a great understanding of financial analytics and the role of ESG activities.

Requirements:
You have been asked by your selected company i.e. BAYER COMPANY (AUSTRAILA) to complete a brief 2,000-word financial analysis report of the company.

This financial analysis requires you to investigate the company’s current financial position and its performance throughout the previous three (3) years of the organization’s life (Financial Years 2021 to 2023), based only on the company’s
publicly available information.

You are required to undertake this analysis using key ratios that will enable you to
detail the financial and management performance of the organization relative to its industry/competition. Given this, this report should also consider the organization’s performance from a holistic (interconnected) perspective, thus, the report should heavily consider Integrated Reporting (see below further information).

This report should present and justify the analysis undertaken and include well-
reasoned recommendations for the operations of the organization based on the
findings of the report. This analysis should also take into consideration the
competitive position of the firm, as such, this will involve a comparative analysis
(considering industry benchmarks or benchmarks from direct competition).

The key to this assignment is to complete a relevant financial analysis, evaluate the level of IR and from this analysis, identify actual or potential issues that you have uncovered (and questions you would like to explore to determine reasons for some of your findings).

Integrated Reporting: <500 words

• Your report should present (Compare and Contrast) the degree of integrated
reporting throughout your selected company’s publicly available reports.

• For further information, please consider the seven ‘Guiding Principles’ of the
Integrated Reporting Framework: https://integratedreporting.ifrs.org/

Business Report structure:
• The report is to be presented professionally and to contain all conventional report elements (refer to the Report Structure Guidance).

• This report should also convey all key information critical to the analysis. The
report is to be no more than 2,000 words. Penalties will be applied if this is
exceeded.

References:
• Any materials used in this assignment must be acknowledged and appropriately
referenced.

  • Please use the Harvard referencing style.

Excel document:

  • It is expected that each assessment has a complementary excel document that has been created to a professional standard (fully functional, dynamic, and professionally presented). This document should be attached to the submission.

You have to calculate the Percentage Analysis all using Excel and please use bar diagram in excel.

  1. Horizontal Analysis (2years)
  2. Trend Analysis (3 years and above) use Revenue, cost of goods and gross profit and show trend chart also and trend analysis balance sheet.
  3. Vertical Analysis (common-size statement) for the full balance sheet (Assets, Liabilities and Equity Separately). Comment on your findings
  4. Ratio Analysis

Profitability (comment on your findings)

  1. Return of Assets (ROA)
  2. Return on shareholders’ equity (ROE)
  3. Net profit margin
  4. Gross profit margin

Asset Efficiency (comment on your findings)

  1. Total Assets turnover ratio
  2. Accounts receivable turnover (Debtors’ turnover)
  3. Inventory turnover

Liquidity (comment on your findings)

  1. Quick ratio
  2. Current ratio
  3. Debt to equity ratios

Long-term solvency ratios (comment on your findings)

  1. Capital structure ratio
  2. Interest coverage ratio
  3. Cash flow from operations to total liabilities

Marketing performance (comment on your findings)

  1. EPS
  2. DPS
  3. Dividend payout ratio
  4. Price earnings ratio
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