Step 3 – Financial analysis
Step 3 – Financial analysisYou are required to calculate and analyses all relevant ratios for a five-year period. Each group member must calculate one years of ratios (ensuring same formulas are used) and evidence of this participation must be included in your group discussion area.
Analyze the changes in the following ratios of the company based on your five year calculations:
2) operating efficiency
Other information relevant to your analysis: To enable a comprehensive analysis of your company there will be additional relevant information including, but not limited to, performance of, and existence of competitors and regulatory and/or environmental factors influencing your company/industry.
You must use the financial ratios to analyses a company’s five years’ (2011-2015) operating efficiency.You need to analyses whether the changes of a company’s financial position and performance are caused by any external factors such as regulatory changes, increased market competition, changes of consumer preferences, foreign exchange fluctuation or some other relevant events, especially when there are significant changes in performance (hint: you may find this information from director’s report or media reports). Also remember to take all ratios, where appropriate, to two decimal places (ie ROE 10.75% not 10%) If you are able to find industry averages, compare a company’s financial ratios with the industry average. However, this is not always available data.
This is to be presented a business report so therefore use appropriate sub-headings throughout your report.
Company Name is Metcash Limited (http://www.metcash.com/investor-centre/)
We will find the annual report on their website.
Make At least of Bar diagram and Reference should be on Harvard style.
A balanced discussion has been provided. A constructive analysis is present but lacks some depth. Presents information from relevant sources representing various points of view or approaches, consolidating and synthesizing information and demonstrating a mastery of theoretical knowledge and advanced and integrated understanding of recent developments in the discipline and/or area of professional practice.
Ratios Formula Year 2011 Year 2012 Year 2013 Year 2014 Year 2015
1.Inventory turnover Cost of goods sold/inventory 11.71525814 13.2990643 15.59923057 16.32764184 17.35396491
2.Inventory turnover in days Days in year/Inventory turnover 31.15595026 27.44553991 23.39858998 22.35472848 21.03265748