School of Business and Law
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BAFI3225 Financial statement analysis
Overview
Financial statement analysis is an integral part of the business analysis of the firm; it requires examination of the prevalent economic situation, industry analysis, and the firm’s strategic position. This assessment covers the basics of both qualitative and quantitative analysis of the firm’s reports and then looks further into risk analysis, forecasting and valuation techniques. The aim is to provide a working knowledge of the role of financial reports in the overall firm valuation. This assessment adopts a practical approach where possible using data from real company reports. You will gain an appreciation of the usefulness and importance of financial statement information and the tools used to evaluate such information.
You are an analyst of a consulting firm team. You are responsible for evaluating a potential company for investment on behalf of your client. Your client does not know the company and is relying on you to provide some analysis, valuation and recommendation of the selected company as a potential investment option.
You will need to acquire financial data which you will use to conduct your analysis but you will also need to enhance or update this data from your own research.
You are required to write a financial modelling report of a selected public company in Australia. This report is divided into two parts. Assessment 2 is part 1 and includes the industry, company and financial analysis of the company. This part needs to provide descriptions of relevant economic and industry information, the company’s position in the industry, its company strategy and a financial analysis of the company’s current position.
Assessment criteria and weighting
Analyse the industry of a selected public company by providing quantitative and qualitative evidence of its major players, its’ ranking, the major competitors and other pertinent information. 6
Outline the short history, core activities, competitive situation, business strategy and major issues within the selected public company. 6
Evaluate the performance of the selected company and apply the forecasting technique. 18
Organise the report according to task requirements. 5
Follow academic conventions and use appropriate language to engage the audience. 5
Learning outcomes
This assessment is linked to the following course learning outcomes:
CLO2: Evaluate the financial status of a company by combining concepts and theories of fundamental analysis and predict the future financial status of the company.
CLO3: Interpret financial statement information in the economic and industrial environments and identify and generate solutions to financial challenges.
CLO4: Appraise a firm’s financial statement information in the context of the firm’s economic and business conditions to make informed financial decisions about the firm.
Resources
Your main source of information should be the firm’s latest annual report and recent public information, such as that found on websites, databases and current, reputable news sources.
Referencing guidelines
You must acknowledge all the sources of information you have used in your assessments.
Refer to the RMIT Easy Cite referencing tool to see examples and tips on how to reference in the appropriate style. You can also refer to the library referencing page for more tools such as EndNote, referencing tutorials and referencing guides for printing.
Use the RMIT Harvard referencing method for this assessment.
Submission format
An electronic copy of calculation spreadsheet and Turnitin originality report should be included when submitting the assignment.
Upload as one single file via the Assignments submission page within Canvas.
Formatting requirements
The report needs to be separated into paragraphs within four sections. The headings must be as follows:
• Business analysis
• Industry analysis
• Financial analysis
• Forecasting
• Appendix (include forecasting calculations as an Excel sheet)
Academic integrity and plagiarism
Academic integrity is about honest presentation of your academic work. It means acknowledging the work of others while developing your own insights, knowledge and ideas.
You should take extreme care that you:
• Acknowledge words, data, diagrams, models, frameworks and/or ideas of others you have quoted (i.e. directly copied), summarised, paraphrased, discussed or mentioned in your assessment through the appropriate referencing methods.
• Provide a reference list of the publication details so your reader can locate the source if necessary. This includes material taken from internet sites.
If you do not acknowledge the sources of your material, you may be accused of plagiarism because you have passed off the work and ideas of another person without appropriate referencing, as if they were your own.
RMIT University treats plagiarism as a very serious offence constituting misconduct.
Plagiarism covers a variety of inappropriate behaviours, including:
• failure to properly document a source
• use of copyright material from the internet or databases
• collusion between students
For further information on our policies and procedures, please refer to the University website.
Assessment declaration
When you submit work electronically, you agree to the Assessment declaration.
Criteria
Ratings
Pts
HD D C P N
Industry analysis
Analyse the industry of a selected public company by providing quantitative and qualitative evidence of its major players, its’ ranking, the major competitors and other pertinent information. The report demonstrates strong evidence of thorough sector research; in depth and relevant analysis of industry and major players and in-depth insight into competitors.
The economic data provided is relevant to the industry identified and is from a diverse range of sources. The report demonstrates evidence of thorough sector research; relevant analysis of industry and major players and detailed
insight into competitors.
The economic data provided is relevant to the industry identified and is from various sources The report demonstrates evidence of sector research. The analysis of industry and major players is slightly tangential, but the main points are covered. Insight into competitors is evident and the economic data provided is relevant to the industry identified from a few mainstream sources. The report demonstrates limited evidence of sector research. The analysis of industry and major players is not always relevant, but the main points are covered. The report provides
insight into competitors
but is limited. The economic data provided is relevant to the industry identified from a few mainstream sources. The report demonstrates irrelevant or shallow sector research; irrelevant or shallow analysis of industry and major players; or poor insight into competitors.
The report does not show economic
data that is relevant to industry or provides data from only one source.
6.0 to 4.79 pts 4.79 to 4.19 pts 4.19 to 3.59pts 3.59 to 2.99 pts 2.99 to 0 pts 6.0
Company analysis
Outline the short history, core activities, competitive situation, business strategy and major issues within the selected public company. The report demonstrates evidence of thorough company research; in-depth analysis of the company’s annual report and all key points contained in the financial data are identified and discussed. The report demonstrates evidence of detailed company research; detailed analysis of the company’s annual report and all key points contained in the financial data are identified and discussed. The report
demonstrates a
sufficient level of
company research; relevant analysis of the company annual report and sufficient points contained in the financial data are identified and discussed. The report demonstrates an adequate level of company research; an appropriate analysis of the company annual report although limited and all points contained in the financial data are identified and mostly discussed. The report demonstrates an inadequate level of company research inadequate; poor or
no analysis of the company annual report and some/all key points contained in the financial data were either missed or not discussed.
6.0 to 4.79 pts 4.79 to 4.19 pts 4.19 to 3.59pts 3.59 to 2.99 pts 2.99 to 0 pts 6.0
Financial analysis and forecasting
Evaluate the performance of the selected company and apply the forecasting technique. The report clearly provides a thorough
Assessment of the company’s performance using financial analysis and data from a diverse range of sources.
The report explains forecasting The report provides a detailed Assessment of the company’s performance using financial analysis and data from a range of sources.
The report develops
forecasting The report provides enough Assessment of the company’s performance using financial analysis and data from some sources.
The report demonstrates The report provides an appropriate analysis of
annual report for the
chosen company analysis sections supported with a small number of sources.
The report includes forecasting analysis, in line with company The report provides a poor analysis of the annual report for the chosen company analysis sections with a limited number of sources.
The report does not
assumptions and the calculation process in-depth. assumptions and the calculation process. forecasting analysis in line with company strategy and performance and showed the calculation process. strategy and performance but it is minimal. compare company
financial data with other benchmarks or there is poor or no link forecasting with the company strategy.
18.0 to 14.39 pts 14.39 12.59 pts 12.59 to 10.79 pts 10.79 to 8.99 pts 8.99 to 0 pts 18.0
Report structure
Organise the report according to task requirements.
The report exemplifies an understanding of the context and purpose of a business report.
The report exhibits a professional and well-thought out layout with table of contents, heading levels, diagrams etc. transferring complex knowledge and ideas effectively. The report demonstrates high level understanding of the context and purpose of a business report. The report exhibits a carefully lay out with table of contents, heading levels, diagrams etc.
transferring complex knowledge and ideas effectively. The report
demonstrates
sufficient grasp of the context and purpose of a business report. The report exhibits an organised layout with table of contents, heading levels, diagrams etc.
attempting a
transferral of complex knowledge and ideas. The report demonstrates basic grasp of the context and purpose of a business report.
The report has a layout with table of contents, heading levels, diagrams etc. and shows an attempt to transfer complex knowledge and ideas coherently. The report
demonstrates minimal grasp of the context and purpose of a business report. The report has a poor layout of table of contents, heading levels, diagrams etc., ineffectively
transferring complex knowledge and ideas.
5.0 to 3.99 pts 3.99 to 3.49 pts 3.49 to 2.99 pts 2.99 to 2.49 pts 2.49 to 0 pts 5.0
Referencing and language in use
Follow academic conventions and use appropriate language to engage the audience. The report clearly and accurately records all cited sources in the report using Harvard referencing.
The language in the The report records all cited sources in the report mostly accurately using Harvard referencing.
The language in the The report records most cited sources in the report using Harvard referencing but errors are evident.
The language in the The report records some cited sources using Harvard referencing but some major errors are evident.
The language in the The report has missing or incorrect citations or does not apply Harvard referencing style.
The overall
report is clear, concise and skilfully engages the audience throughout. report is clear, concise and engages the audience. report is clear and concise and engages the audience in some sections. report is in parts verbose or unclear. language is confusing or unclear.
5.0 to 3.99 pts 3.99 to 3.49 pts 3.49 to 2.99 pts 2.99 to 2.49 pts 2.49 0pts 5.0
Total: 40 pts
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Business and Law School —
BAFI3225 Analyze financial statements
Assessment 2: Financial modelling project – Part 1
Overview
Financial statement analysis is an integral part of the business analysis of the firm; it requires examination of the prevalent economic situation, industry analysis, and the firm’s strategic position. This assessment covers the basics of both qualitative and quantitative analysis of the firm’s reports and then looks further into risk analysis, forecasting and valuation techniques. The aim is to provide a working knowledge of the role of financial reports in the overall firm valuation. This assessment adopts a practical approach where possible using data from real company reports. You will gain an appreciation of the usefulness and importance of financial statement information and the tools used to evaluate
