Finance for Managers | My Assignment Tutor

Finance for Managers: Assignment Spring 2021….. This is an individual assignment.  The word count is 1,200 words with a 10% margin.  The deadline is the 26th March, 2021. A spreadsheet will be added to the assignment tab which will show which company has been allocated to you. You then need to access the companies’ financial statements.  A simplified version is available via the database Amadeus which is available to you after signing in with your university details.  Search for Amadeus in the university catalogue search for Amadeus and choose the Amadeus database, online access Then click on Resource available at amadeus Log in using your university details Then enter your company name. Select the worksheet view at the top of the Global standard format section, you can then open the file in excel. You must compute the ratios yourself rather use than the ones provided and they MUST be calculated as I have shown in the lecture.  You must include the workings.  YOU WILL ONLY GET MARKS FOR EACH RATIO IF YOU HAVE COMPUTED THE RATIOS AS SHOWN BELOW. The ratios you need to calculate are included below.  It is these you must calculate.  You will not gain any marks for other ratios and will lose marks if you do not calculate these.   Amadeus Gross profit margin          Gross profit          turnoverx 100             Gross profit Operating revenue (Turnover) x 100Operating profit margin      Profit Before Interest and tax                 Turnover                                   x 100      Operating P/L [=EBIT] Operating revenue (Turnover)  x 100Operating Expenses margin   Operating expenses         Turnoverx 100Other operating expenses Operating revenue (Turnover)  x 100Sales growth rate   Turnoverlatest year– Turnover previous year             Turnover previous yearx 100Use, for the calculation Operating revenue (Turnover) x 100Return on shareholders’ investment                    net income          Capital and reservesx 100P/L for period [=Net income]       Shareholders fundsx 100Return on capital employed   Profit Before Interest and tax    Capital and reserves + debt                                                x 100    Operating P/L [=EBIT] (Shareholders funds + Long term debt)  x 100Current Ratio   current assets:current liabilities?:1current assets:current liabilities                     ?:1[LH1] Acid test (quick) ratio   (current assets   :current liabilities less inventory?:1current assets: current less Stock          liabilities?:1[LH2] Gearing ratio                         debt    Capital and reserves + debt                                                x 100    Long term debt) Shareholders funds + Long term debt  x 100Interest cover   Profit Before Interest and tax               Interest paid                                              times    Operating P/L [=EBIT]       Financial expensestimesAsset turnover         Turnover    Total assetstimesOperating revenue (Turnover)            TOTAL ASSETStimesReceivables days       accounts receivables Operating revenue (Turnover)x 365 days  Debtors Operating revenue (Turnover)x 365 daysInventory days         Inventory Cost of goods soldx 365 daysStock Costs of goods soldx 365 daysPayables days         Accounts payable       Cost of goods soldx 365 days       Creditors Costs of goods soldx 365 daysCash Operating Cycle   Receivables days + Inventory days – Payables daysdaysReceivables days + Inventory days – Payables daysdays Most of the data you will need will be provided in the income statement and statement of financial position in the accounts you have retrieved.  You also need end of year market price and number of shares outstanding and these can be accessed by clicking on stock data and then Annual stock data (see below). You need this data to compute the following ratios: Earnings per share                  net income          Number of shares P/L for period [=Net income]  Shares outstanding (th)   Note the (th) means you need to multiply the figure by 1,000 to get the number of shares Price Earnings ratio   End of year share price     Earnings per share Market price – year end    Earnings per share  Also note that the financial statements are given in € but the annual stock data is given in £ so you need to convert them all to the same currency.  The conversion rate is provided at the top of the columns, please use that. I am not asking you to compute ratios which require dividend data. Calculating appropriate accounting ratios prepare a report analysing the performance of and comparing the performance of the company over the last 2 years under the following headings : Profitability,Liquidity,Working capital management,Solvency & risk,Shareholder return,Overall financial performance. Please provide the spreadsheet in an appendix, the accounting ratios you have calculated and a reference section.  [LH1]Divide current assets by current liabilities and then put the number where the ? is  [LH2]Divide (current assets- stock)  by current liabilities and then put the number where the ? is


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