Company Report
You will get an opportunity to choose a specific company (Company X) which will be used to complete this assessment. You will need to obtain a copy of the latest Annual Report of Company X which you should be able to download from the company’s website.
Schedule of Work
Part A
Introduce Company X to the reader. It is expected that this will include some company history, the principal activity of the company, products, markets, and key financial results
Part B
Using the annual report and accounts of Company X, you should include the following analysis in your assignment.
| Previous Year (2022) | Current Year (2023) | % Movement | |
| Revenue | |||
| Gross profit | |||
| Operating expenses | |||
| Operating Profit | |||
| Total Assets |
Part C
Calculate, for BOTH the current and the previous year, the following ratios that help to highlight Company X’s performance for the trading period. Please remember to specify the formula and the years.
| Ratio and Formula | Previous year (2022) | Latest year (2023) |
| 1. Profitability Ratios | ||
| (a) Gross profit margin (%) | ||
| (b) Operating profit margin (%) | ||
| (c) Return on capital employed (%) | ||
| 2. Short-term Solvency | ||
| (a) Current ratio | ||
| (b) Acid test | ||
| 3. Efficiency | ||
| (a) Trade receivable collection period | ||
| (b) Trade payable payment period | ||
| (c) Inventory turnover period | ||
| 4. Long-term solvency | ||
| (a) Gearing (%) | ||
| (b) Debt ratio (%) |
Part D
Your good friend, Antonia is considering buying 5,000 shares in Company X but knows very little about accounting. Please write a report to Antonia analysing the latest financial position and performance of Company X. You will be expected to make use the relevant percentage movements (from Part B) and ratios calculated in part C. You may also opt to discuss more ratios and nonfinancial information.
Part E
You should conclude the report with your recommendation (based on financial and non-financial information) as to whether or not Antonia should invest in the company.
Part F
The report should be neatly typed (Arial font size 12) and presented. Referencing and bibliographies should use the APA 7th Style system (see the attached guide or consult the Learning Information Services, i.e., the library’s web page or Napier web pages on plagiarism).
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