Finance for Managers: Assignment Spring 2021This 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 hasbeen allocated to you.You then need to access the companies’ financial statements. A simplified version isavailable via the database Amadeus which is available to you after signing in with youruniversity details. Search for Amadeus in the university cataloguehttps://www.bangor.ac.uk/library/index.php.ensearch for Amadeusand choose the Amadeus database, online accessThen click on Resource available at amadeusLog in using your university detailsThen enter your company name.Select the worksheet view at the top of the Global standard format section, you can thenopen the file in excel.You must compute the ratios yourself rather use than the ones provided and theyMUST be calculated as I have shown in the lecture. You must include the workings.YOU WILL ONLY GET MARKS FOR EACH RATIO IF YOU HAVECOMPUTED 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 notcalculate these. AmadeusGross profit marginGross profitturnoverx 100Gross profitOperating revenue (Turnover)x 100Operating profit marginProfit Before Interest and taxTurnoverx 100Operating P/L [=EBIT]Operating revenue (Turnover)x 100Operating Expenses marginOperating expensesTurnoverx 100Other operating expensesOperating revenue (Turnover)x 100Sales growth rateTurnoverlatest year- Turnover previous yearTurnover previous yearx 100Use, for the calculationOperating revenue (Turnover)x 100Return on shareholders’ investmentnet incomeCapital and reservesx 100P/L for period [=Net income]Shareholders fundsx 100Return on capital employedProfit Before Interest and taxCapital and reserves + debtx 100Operating P/L [=EBIT](Shareholders funds + Long termdebt)x 100Current Ratiocurrent assets:current liabilities?:1current assets:current liabilities?:1Acid test (quick) ratio(current assets :current liabilitiesless inventory?:1current assets: currentless Stock liabilities?:1Gearing ratiodebtCapital and reserves + debtx 100Long term debt)Shareholders funds + Long term debtx 100Interest coverProfit Before Interest and taxInterest paidtimesOperating P/L [=EBIT]Financial expensestimesAsset turnoverTurnoverTotal assetstimesOperating revenue (Turnover)TOTAL ASSETStimesReceivables daysaccounts receivablesOperating revenue (Turnover)x 365daysDebtorsOperating revenue (Turnover)x 365daysInventory daysInventoryCost of goods soldx 365daysStockCosts of goods soldx 365daysPayables daysAccounts payableCost of goods soldx 365daysCreditorsCosts of goods soldx 365daysCash 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 offinancial position in the accounts you have retrieved. You also need end of year marketprice and number of shares outstanding and these can be accessed by clicking on stockdata and then Annual stock data (see below). You need this data to compute the followingratios: Earnings per sharenet incomeNumber of sharesP/L for period [=Net income]Shares outstanding (th)Note the (th) means you need tomultiply the figure by 1,000 to getthe number of sharesPrice Earnings ratioEnd of year share priceEarnings per shareMarket price – year endEarnings 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 providedat 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 ofand comparing the performance of the company over the last 2 years under the followingheadings :a) Profitability,b) Liquidity,c) Working capital management,d) Solvency & risk,e) Shareholder return,f) Overall financial performance.Please provide the spreadsheet in an appendix, the accounting ratios you have calculatedand a reference section.
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