Crown Resorts| 2020 Annual Report

Questions:

Crown Resorts: 2020 annual report

This assessment requires you to analyse the financial performance and position of an organization from different perspectives. This will include examining a balance sheet, income statement.

Question 1:

Read the supplementary material from 2020 annual report. What is the full company name, the surname of the CEO and the CEO’s total Remuneration package in the Financial Year of 2020.

Full Company Name (0.5’)

CEO Surname (0.5’)

CEO’s Total Remuneration in A$ million (1’)

 

 

 

 

Question 2:

Read the supplementary material from 2020 annual report. In one sentence, describe what is the main business that the company operates and in which Business sector is it located? Who are the key customers and where are they geographically located?

Main Business (1’)

Business Sector (1’)

Customers & Their Location(s) (1’)

 

 

 

 

 

 

 

 

 

 

Question 3:

Read the supplementary material from 2020 annual report. In 50 words or less, briefly summarize what impact, if any, the COVID 19 global pandemic had on a) operational costs and b) sales? In words, explain why the c) operating profits and d) operating profit margins increased or decreased due to the global pandemic.

 

Covid 19 Impact (why)

a) Operating costs (1’)

 

 

 

 

 

 

b) Sales (1’)

 

 

 

 

 

 

c) Operating Profits (1.5’)

 

 

 

 

 

 

d) Operating Profit Margin (1.5’)

 

 

 

 

 

 

 Question 4:

In one sentence describe the purpose of the 1) income statement and the 2) balance sheet.  Which accounting elements (assets, liabilities, equites etc) appear in each financial statement. Explain in which section of the balance sheet profit is represented.

 

Purpose

Accounting Elements

Income Statement (1’)

 

 

 

 

 

Balance Sheet (1’)

 

 

 

 

 

 

In one sentence, explain in which section of the balance sheet profit is represented and how.

Question 5:  

Read the supplementary material for 2021 financial statement analysis. In the table below report in millions the Assets, Liabilities and Equities in 2020 and 2021.

 

Total Assets $millions

(1’)

Total Liabilities $millions (1’)

Total Equity $millions

(1’)

2020

 

 

 

2021

 

 

 

Question 6:

Based on your answers in Question 5, undertake a horizontal analysis by calculating the percentage change (year on year) for total assets, total liabilities, and total equity.

% Change in Total Asset (1’)

% Change in Total Liabilities (1’)

% Change in Total Equity (1’)

 

 

 

 Question 7A:

Read the supplementary material for 2021 financial statement analysis. In 50 words or less describe how the Reserve Bank of Australia changed the target cash rate in 2020 in response to the COVID19 pandemic. In what direction did they change it and how would this impact financing cost if the company borrowed from Australian banks?

Target Cash Rate (1’)

Financing Cost (1’)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Question 7B:

Explain how an increase in the target cash rate will impact business investment and household consumption

Impact of changing cash rate on business investment and household consumption (1’) 

Question 8A:

Read the supplementary material for 2021 financial statement analysis. Complete the Profitability Ratios. Show calculations & results.

 

2019 (given)

2020 (1’) 

2021 (1’)

Gross profit margin

94.62%

 

 

 

 

 

Operating profit margin

29.65%

 

 

 Questions 8B:

Based on your answer in Question 8A, is gross profit margin and operating margin changing in the same direction or not?

Question 9:

Read the supplementary material for 2021 financial statement analysis. Complete the following Liquidity Ratios. Show calculations & results.

 

2019 (given)

2020 (1’)

2021 (1’)

Current ratio

1.21

 

 

Quick ratio

1.15

 

 

Question 10A:

Read the supplementary material for 2021 financial statement analysis. Complete the following Solvency Ratios. Show calculations & results.

 

2019 (given)

2020 (1’)

2021 (1’)

 Competitor

2021 (given)

Debt to Equity

0.4977

 

 

0.45

Question 10B:

Consider the trend in your answer to Question 10A. In 100 words or less, explain how this trend will make it harder or easier for the company to borrow money? In doing so, compare this debt-to-equity ratio to another major competitor – is it higher or lower?

Question 11A:

Read the supplementary material for 2021 financial statement analysis. Complete the following Profitability Ratio (Decomposition). Show calculations & results.

 

2019 (given)

2020 (1.5’)

2021(1.5’)

Competitor

2021 (given)

ROA

8.86%

 

 

7.62%

EM

1.5023

 

 

1.45

ROE

13.31%

 

 

11.05%

 Question 11B:

Based on your analysis in Question 3 and Q11A, explain in 100 words how did the global COVID19 pandemic impact ROE?

tag Read less
QUALITY: 100% ORIGINAL PAPER – NO PLAGIARISM – CUSTOM PAPER

Leave a Reply

Your email address will not be published. Required fields are marked *