This project requires you to conduct a financial statement analysis of a publicly listed company for...

 

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This project requires you to conduct a financial statement analysis of a publicly listed company for the year 2023. One of the following ASX-listed companies will be assigned to your group by the UC. Wesfarmers Limited (Stock Code: WES) Woolworths (Stock Code: WOW) You are expected to address the following questions in your written report. 1. What is the name of the company that you/your group members were assigned to complete this project? What is the industry in which your company belongs to? What is the view of the management of the company about the future outlook and performance of the company? [0+1+2=3 Marks] 2. Identify two (2) pieces of information not included in the financial statements (but still in the annual report) that you think would be important to someone considering whether to invest in the company. Discuss your reasons for believing that this information would be important in making an investment decision. [2+2=4 Marks] 3. Analyse your allocated company's investing and financing activities for the year 2023 as identified in the statement of cash flows, specifically, identify the two largest investing activities and the two largest financing activities. Evaluate the cash flow from operating activities of the firm (specifically analyse whether the company is performing better over the years, discuss whether cash flow from operating activities appears to be satisfactory given the current business environment and firm's stage in the life cycle). 4. Assume that, as a credit analyst, you are evaluating your allocated company. Only use the most appropriate ratios for the year 2023 from the annual report and evaluate whether one should provide a loan to this company [Use at least 4 ratios]. [2+2=4 marks] 5. Assume that you want to invest in shares of your allocated company. Use the most appropriate efficiency and profitability ratios from the annual report and use these data to evaluate whether this company is a suitable candidate for investment purpose [Use at least 4 ratios for efficiency and 4 ratios for profitability]. [2+2+2=6 marks] 6. Assume that you are also considering investing in the stock of CSL. However, due to capital constraints, you have to choose between CSL and your allocated company. Compare your company's financial statements, and performance, with those of the CSL. If you were to decide between the two firms, which one would you choose? And discuss your reasons. [In evaluating and comparing the companies, use appropriate ratios and other analyses. Provide clear justifications as to why you believe your approach to evaluation is appropriate for investment decision purpose]. [8 marks] 7. Perform a valuation of your allocated company using an appropriate discounted cash flow model. Carefully explain the assumptions used to select inputs for your model. On the basis of your work, make an investment recommendation. [6 marks] Submission: Your report should be a readily comprehensible and condensed summary of your work, and within 20 pages (A4, size 12 font, 1.5 space) including all tables and appendices. Please properly cite any sources used. Your report should be submitted via the Turnitin link on Blackboard. Late submission will be penalised per university policy. One submission per group. This project requires you to conduct a financial statement analysis of a publicly listed company for the year 2023. One of the following ASX-listed companies will be assigned to your group by the UC. Wesfarmers Limited (Stock Code: WES) Woolworths (Stock Code: WOW) You are expected to address the following questions in your written report. 1. What is the name of the company that you/your group members were assigned to complete this project? What is the industry in which your company belongs to? What is the view of the management of the company about the future outlook and performance of the company? [0+1+2=3 Marks] 2. Identify two (2) pieces of information not included in the financial statements (but still in the annual report) that you think would be important to someone considering whether to invest in the company. Discuss your reasons for believing that this information would be important in making an investment decision. [2+2=4 Marks] 3. Analyse your allocated company's investing and financing activities for the year 2023 as identified in the statement of cash flows, specifically, identify the two largest investing activities and the two largest financing activities. Evaluate the cash flow from operating activities of the firm (specifically analyse whether the company is performing better over the years, discuss whether cash flow from operating activities appears to be satisfactory given the current business environment and firm's stage in the life cycle). 4. Assume that, as a credit analyst, you are evaluating your allocated company. Only use the most appropriate ratios for the year 2023 from the annual report and evaluate whether one should provide a loan to this company [Use at least 4 ratios]. [2+2=4 marks] 5. Assume that you want to invest in shares of your allocated company. Use the most appropriate efficiency and profitability ratios from the annual report and use these data to evaluate whether this company is a suitable candidate for investment purpose [Use at least 4 ratios for efficiency and 4 ratios for profitability]. [2+2+2=6 marks] 6. Assume that you are also considering investing in the stock of CSL. However, due to capital constraints, you have to choose between CSL and your allocated company. Compare your company's financial statements, and performance, with those of the CSL. If you were to decide between the two firms, which one would you choose? And discuss your reasons. [In evaluating and comparing the companies, use appropriate ratios and other analyses. Provide clear justifications as to why you believe your approach to evaluation is appropriate for investment decision purpose]. [8 marks] 7. Perform a valuation of your allocated company using an appropriate discounted cash flow model. Carefully explain the assumptions used to select inputs for your model. On the basis of your work, make an investment recommendation. [6 marks] Submission: Your report should be a readily comprehensible and condensed summary of your work, and within 20 pages (A4, size 12 font, 1.5 space) including all tables and appendices. Please properly cite any sources used. Your report should be submitted via the Turnitin link on Blackboard. Late submission will be penalised per university policy. One submission per group.