Financial Statement Analysis

Task: Assignment 1

• This is a group task.

• There should be up to 3 students in each group.

• As a group, you are required to answer all questions to the following tasks.

• You should prepare your answers with the objective of applying all the knowledge learned in class that corresponds to the course content.

• You should demonstrate thorough understanding of finance concepts and principles. The students’ work will be assessed by depth of analysis, solid

judgments, logic of statements, and understanding of implications of finance and business. For calculations, you should show all your workings and the

results.

Submission format: You should prepare Report in pdf and Presentation in ppt.

Formalities:

• Font: Arial 12,5 pts.

• Text alignment: Justified.

• The in-text References and the Bibliography must be in Harvard’s citation style.

Submission: Week 6 – Report via Moodle (Turnitin) by Sunday November 12th, 2023, 23:59hrs. Presentations in Week 6 in class. All group members should present.

Weight: This task is 20% of your total grade for this subject. Report and Presentation contribute equally (each 50%) towards the task grade.

This task assesses the following learning outcomes:

Outcome 1: Analyze in detail three main financial statements.

Outcome 2: Complete a comprehensive financial ratio analysis from the perspective of stockholders, creditors, and other stakeholders.

Outcome 3: Develop sound analytical frameworks to grasp the process of decision making with respect to financial statement analysis.

United Snus Association2
TASKS:

You are required to choose a public company in Consumer Goods industry (you can find it in the list https://consumergoods.com/top-100-consumer-goods- companies-2022) and prepare a report and presentation on the following five tasks, using its annual report for year 2022 and any additional information that you can find publicly on Internet. Note that you should perform analysis for the last two years reported (2022 versus 2021).

1. Explain briefly the company mission, business activities, corporate values and anything else that you find useful for understanding the context in which

the company operates.

(10 points)

2. Examine Income Statement. Prepare common size analysis. Evaluate the company’s trend in sales, gross profit, operating profit and net income.

(20 points)

3. Examine Balance Sheet. Prepare common size analysis. Identify what Assets the company has, distinguishing between Current and Non-Current (Tangible

and Intangible), and Liabilities, distinguishing between Short-Term and Long-Term Liabilities. Describe the capital structure of the company (i.e., what part

of Debt and Equity financing it uses).

(20 points)

4. Examine Cash Flow Statement. Specify what kind of cash inflows and outflows the company has in its operating, investing and financing activities. Explain

how the cash balance was changing over the years reported.

(20 points)

5. Perform Ratio Analysis for your chosen company. Evaluate Company’s liquidity, profitability, leverage and efficiency. Apply techniques learnt in class and

make meaningful conclusions related to the ratio results.

(30 points)

Points are stated at the end of each task.

https://consumergoods.com/top-100-consumer-goods-companies-2022
https://consumergoods.com/top-100-consumer-goods-companies-2022
Rubrics

Descriptor

9-10 The student demonstrates an excellent understanding of the concepts.

8-8.9 The student demonstrates a good understanding of the concepts.

7-7.9 The student demonstrates a fair understanding of the concepts.

6-6.9 The student demonstrates some, but insufficient understanding of the concepts.

3-5.9 The student demonstrates insufficient understanding of the concepts. They may mention some relevant ideas or concepts, although it is clear that the relationship between them is not understood by the student.

1-2.9 The student demonstrates insufficient understanding of the concepts and does not mention any relevant ideas or concepts.

0 The student leaves the question blank or cheats.