Analysis Of Company Report Writing – Management Assignment Help

Assignment Task:

Task

Company Analysis:

The goal of this assessment is to look at the different specified financial aspects related to UK firm you have chosen, and which should be listed on the London Stock Exchange (LSE). Most of the firms listed on the LSE operate both in the UK and abroad. Therefore,they are international in the way they operate their business. An understanding of the financial side of this firm is very important as stakeholders and potential investors constantly scrutinize listed firms in order to assess if management is running the business properly. To cover the main financial aspects of this firm you should address each part as indicated below by using articles, textbooks, databases and any other reliable source of information. 

Part 1:

The goal of this part is to provide a summary of the company you have chosen. Resources you need for this task include: Textbooks, Orbis database, website Yahoo finance, company’s annual reports, and any other relevant resources you may find.

• Select a firm listed on the London Stock Exchange (you must use the Excel containing companies listed on the Board of the London Stock Exchange that I uploaded on Moodle, named ‘Companies on London Stock Exchange’ to find a firm you are interested in) and highlight any specific reasons for selecting this particular company.
• Look at the Annual reports of this firm and describe the company’s activities;
• Find the revenues of this firm over the last 5 years (i.e. 2016-2020) and report these revenues in a table. Comment on whether revenues either increased or decreased. Identify any relevant elements that could have had an impact on the firm’s revenue (i.e. either an external shock such as a financial crisis or an internal impact such as the mismanagement of the company).
• What sector does the company you have chosen belong to? Identify the sector and by using the database Orbis address the following points:

1. Who are the main competitors of the company you have chosen?

2. By looking at the revenues of your company as well as the revenues of its main competitors during the year 2020, identify the market share of your company as well as the market share of each of your company’s main competitors. Either tabulate the market share of each or put it a pie chart form. Comment on the market share of your company as well as the market shares of its main competitors.

•  By using either the Orbis database or the internet website Yahoo finance compile a table where you report on the year-end stock price of your company from 2016 to 2020. Did management maximize the price of this common stock throughout this period? If this has not happened, try to find out the reasons for this (i.e. look at possible external or internal factors)
• Has your chosen company made any long-term investment decisions over the last five years? (tips: look at the annual reports produced by your chosen company during years 2016, 2017, 2018, 2019, and 2020).
• Did your company generate revenue from foreign markets over the last five years? (Tips: look at the annual reports of the year, 2016, 2017, 2018, 2019, and 2020, and try to find the breakdown of revenue in terms of domestic and foreign markets) Report your finding in a table and comment the trend of foreign revenues over the last five years.
• By using the Orbis database or other relevant sources of information, look at the composition of the Board of Directors in your firm of interest. Is there an equal Distribution of gender of people on the Board? Is there any scientific evidence that gender has an effect on decisions made by Boards of Directors of public-listed Companies? Address this last question by using 3-5 relevant academic articles.

Part 2 –The objective of this part is to identify how well your company did financially over the last five years (i.e., 2016, 2017, 2018, 2019, and 2020). Resources you need for this task include: Textbooks, Orbis database, Yahoo finance website, the company’s annual reports and any other resources you may find. In particular you
should address the following points:

Look at the Balance sheet of your firm and report in separate tables the following information:

• Non-current liabilities and current liabilities over the last five years (i.e. 2016, 2017, 2018, 2019, and 2020) and write a short comment related to their trends. Look at the annual report of your company for the last year of your analysis looking for keywords such as ‘non-current liabilities’ and ‘current liabilities’. What do you learn about the company from its annual report in relation to the two afore mentioned terms? 
• Working capital over the last five years (i.e. 2016, 2017, 2018, 2019, and 2020) and write a short comment related to their trends. Look at the annual report of your company for the last year of your analysis looking for keywords such as ‘working capital’. What do you learn about the company from its annual report in relation to this item?

• Calculate the debt-to-asset ratio of your company over the last five years (i.e. 2016, 2017, 2018, 2019, and 2020) and comment on the extent to which your company’s total assets have been financed with debt and write a short comment related to its trend. Look at the annual report of your company for the last year of your analysis looking for keywords such as ‘debt-ratio’. What do you learn about the company from its annual report in relation to this term?
• Calculate the working capital turnover ratio of your company over the last five years (i.e. 2016, 2017, 2018, 2019, and 2020) and comment on the extent to which your company has efficiently used its working capital to generate revenues and write a short comment related to its trend. Look at the annual report of your company for the last year of your analysis looking for keywords such as ‘working capital turnover ratio’. What do you learn about the company from its annual report in relation to this term?
• Calculate the return on equity (i.e. ROE) of your company over the last five years (i.e. 2016, 2017, 2018, 2019, and 2020) and comment on the extent to which your company has been profitable in using its owners capital and write a short comment related to its trend. Look at the annual report of your company for the last year of your analysis looking for keywords such as ‘ROE’. What do you learn about the company from its annual report in relation to this term?

Look at the profit and loss account of your firm and report the following information in separate tables:

• Operating revenue, costs of goods sold and gross profits over the last five years (i.e. 2016, 2017, 2018, 2019 and 2020) and write a short comment related to the trend for each of those aspects. Look at the annual report of your company for the last year of your analysis looking for keyword such as ‘Operating revenue’, ‘costs of goods sold’, and ‘gross profits’. What do you learn about the company from its annual report in relation to these terms?
• Net Profit over the last five years (i.e. 2016, 2017, 2018, 2019 and 2020) and write a short comment related to the trend of this item. Look at the annual report of your company for the last year of your analysis looking for keywords such as ‘Net Profit’. What do you learn about the company from its annual report in relation to this term?
• Calculate the Net Profit Margin ratio of your company over the last five years (i.e. 2016, 2017, 2018, 2019, and 2020) and comment on the extent to which your company’s revenues have generated profits and write a short comment related to this trend. Look at the annual report of your company for the last year of your analysis looking for keywords such as ‘Net Profit Margin’. What do you learn about the company from its annual report in relation to this term?

Part 3 – Describe how you went about selecting a specific company, collecting and analyzing relevant data. Giving your own personal assessment as to how effectively you went about completing this task.