Purpose



Group Project Purpose Financial analysis is frequently used as an analytical tool to help internal and external users of the financial statements assess a company’s performance and make strategic and investment decisions in the future. Financial accountants or analysts primarily perform financial analysis by collecting financial data and analyzing historical data in a spreadsheet. The most common types of financial analysis include vertical, horizontal, and financial ratio analysis (See Appendix 1.1). This assignment will require students to apply analytical skills and interpret financial data and provide insightful recommendations to internal and external users. Requirements: Identify two public listed companies in Canada. Retrieve their financial statements (company investor relation website or ). Perform financial analysis including vertical, horizontal and ratio analysis. Evaluate financial performance. Provide recommendation. Format Maximum 20 pages of the body content and unlimited pages of the appendix Single Space Citation Style, APA or MLA Report Outline (See Appendix 1.2) Title Page Executive Summary Table of Content Introduction Company Background Financial Assessment Vertical Analysis Horizontal Analysis Financial Ratio Analysis Recommendation Conclusion Reference Appendix Assessment Rubrics: Written Communication Assessment 10% 1 Did not meet expectations 2 Met expectations 3 Exceeded expectations Writing Conventions (grammar, word use, punctuation, mechanics) 5% Frequent grammatical errors and misspellings inhibit readability Informal language, abbreviations and slang are used Few grammatical errors and misspellings (e.g. three or fewer per page) Correct verb tense used Paragraphs flow from one to another Active voice pervasive Free of grammatical errors and misspellings Effective verb tense used Uses phrases and construction that delight as well as inform the reader Primarily active voice Overall Effectiveness of Piece (professional appearance, illustration, and format) 5% Not formatted to Specifications, Lacking professional appearance Formatting is generally correct, acceptable professional appearance. Assigned format followed explicitly: Exceptional professional appearance Critical Thinking Assessment 80% Content Clarity Relevance Depth Breadth Integration Consistency Executive Summary (an overview. Its purpose is to summarize the key points of business report) (10%) 1 2 3 1 2 3 1 2 3 1 2 3 1 2 3 1 2 3 Introduction (Company background and competitor and comparability analysis) (5%) 1 2 3 1 2 3 1 2 3 1 2 3 1 2 3 1 2 3 Background (providing information about the organization, competitor and industry) (10%) 1 2 3 1 2 3 1 2 3 1 2 3 1 2 3 1 2 3 Financial Analysis (using financial data to assess a company’s current performance and interpret the financial results including vertical, horizontal and key ratio analysis) (30%) 1 2 3 1 2 3 1 2 3 1 2 3 1 2 3 1 2 3 Recommendation (identify key financial strengths and weaknesses and provide recommendations to improve key financial performance. ) 30% 1 2 3 1 2 3 1 2 3 1 2 3 1 2 3 1 2 3 Conclusion (articulation of financial analysis, recommendation and assumption) 5% 1 2 3 1 2 3 1 2 3 1 2 3 1 2 3 1 2 3 Critical Thinking and Written Analyses Rubric – Scale Description Levels Criteria 1 Did Not Meet Expectations 2 Met Expectations 3 Exceeded Expectations Clarity Writing is not clear. It is difficult to understand points being made. The writing lacks transitions, and few examples and/or illustrations are provided to support explanation or recommendations. Writing is generally well organized and understood. Transitions are used to facilitate clarity. Some examples and/illustrations are used to support explanation or recommendations. Writing is succinct, precise, effectively organized and without ambiguity. Transitions, explanation and elaboration are extensive to elucidate points. Detailed illustrations and/or examples are used to support explanation or recommendations. Relevance Critical issues/questions are omitted or ignored in the writing. Most of the critical issues/questions are addressed in the writing. All critical issues/questions are addressed completely in the writing Depth of Discussion Ignores bias; Omits arguments Misrepresents issues; Excludes data; Includes but does not detect inconsistencies of information; Ideas contain unnecessary gaps, repetition or extraneous details; Sees no arguments and overlooks differences Detects bias; Recognizes arguments; Categorizes content; Paraphrases data; Sufficient detail to support conclusions and/or recommendations Analysis includes insightful questions; Refutes bias; Discusses issues thoroughly Critiques content; Values information Examines inconsistencies; Offers extensive detail to support conclusions and recommendations; Suggests solutions or implementation Breadth of Discussion Omits arguments or perspectives; Misses major content areas/concepts; Presents few options Covers the breadth of the topic without being superfluous Considers multiple perspectives; Thoroughly delves into the issues/questions;Thoroughly discusses facts relevant to the issues Integration of all Elements of Reasoning Fails to draw conclusions or conclusions rely on author’s authority rather than strength of presentation; Draws faulty conclusions; Shows intellectual dishonesty Formulates clear conclusions with adequate support Assimilates and critically reviews information, uses reasonable judgment, and provides balanced, well justified conclusions Internal Consistency There is little integration across the sections of the paper. Several inconsistencies or contradictions exist. Few of the issues, recommendation and explanations make sense and are well integrated. Sections of the paper are generally well linked/connected. Only minor contradictions exist. Most of the issues, recommendations and explanations make sense and are well integrated. All sections of the paper are linked. There are no contradictions in the writing. All issues, recommendations and explanations make sense and are well integrated Values: Level 1: 30%, Level 2: 60% and Level 3: 100% Appendix 1.1 Financial Ratios Profitability Gross Margin Ratio Operating Margin Ratio Return on Assets Return on Equity Productivity Asset Turnover Inventory Turnover Days sales in Inventory Account Receivable Turnover Days of Account Receivable Collection Account Payable Turnover Days Payable Outstanding Liquidity Current Ratio Quick Ratio Cash Ratio Solvency Debt Ratio Debt to Equity Interest Service Ratio Market Prospect Dividend Yield Earing per Share Price per Earnings Book Value per Share Appendix 1.2 Report Outline Tittle Page Executive Summary (1 page) An executive summary is to summarize the key findings of the report. It should restate the purpose of the report, highlight the major points of the report, and describe any results, conclusions, or recommendations from the report. Table of Content A list of titles of the parts of a book or document, organized in the order in which the parts appear with proper page numbers. Introduction An introduction should explain the purpose of the report, the scope and scale of financial analysis and financial information. Company Background The background generally consists of two to four paragraphs that present specific information to the company, including company history, ownership and management team, vision and mission, product or service, market shares. Also, consider presenting substantial information about the main competitor and the industry. Financial Assessment A financial assessment is a process of evaluating business performance by analyzing financial information such as financial statements and stock market information. The findings will determine management performance in terms of profitability, financial position, and future growth. Common assessments include vertical, horizontal and ratio analysis, and each analysis serves a different purpose and provides significant insights. Vertical Analysis Horizontal Analysis Financial Ratio Analysis Recommendation The recommendation is the main part of the report is to help businesses solve and mitigate identified operational issues and financial risks. The first part of the recommendation is to explain the findings further, and the second part is to propose options available to solve the problems. Conclusion The conclusion should re-emphasize the findings and recommendations and offer suggestions about how management could move toward implementation. Also, should disclose any under looked issues due to constraints or limits. References Provide the secondary source in the references list. Appendix Appendices include information, which is too detailed to present in the body of the report including raw financial data or mathematical calculations. The content should be summarised and referred to at the appropriate point in the body of the report by using (See Appendix x.x). Ans 5. As we compare the wi companies Bell Canada enterprise with Rogers communications inc. in Canada we recommend,as we know that in terms of the communication Rogers Communications scored higher in 4 four areas that is the Career Opportunities for their employees , bell should makes Effective career plans for theor employees , Compensation & Benefits provided by the rogers communications is better than the Bell Canada which enhance their employees productivity, so bell should need to focus on providing better compensation and benefits to their employees ,effective senior management that helps in effective exection of the Organisational functions that bell has lacking , bell Canada needs to improve their culture & organisational values so that employees work effectively, Bell Canada has highest score in 3 areas that is CEO Approval, Recommendation to friend and the positive business outlook that rogers communications needs to focus,Both Overallthe companies tied in Rating and Work life balance that helps in increasing the morale of the employees and Increase their organisations productivity. ................
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