The assignment is split into two parts:

PART 1 (4,500 words)

You are required to select a PLC that has a listing on a London Stock Exchange of your choice and agree this with the module tutor. You are to produce an analysis of the company’s performance over the last two years from the perspective of a potential investor. This should include analysis of the company’s background, financial ratios and non-financial information.

For your analysis, the following accounting ratios should be considered. In each case, the industry average should be considered. Where there is no industry average, you may consider a comparative analysis between your selected company and a major competitor in the same industry/sector.

• Gross Profit Margin
• Operating Profit Margin
• Return on Capital Employed (ROCE)
• Current Ratios
• Trade Receivable Days
• Trade Payable Days
• Inventory Turnover
• Debt/Equity Ratio
• Interest Cover
• Earnings Per Share (EPS)
• Price/Earnings Ratio
• Dividend Cover

Note:

• The financial statements should be the most recent published annual reports. Failure to comply with this instruction may affect the grading of your assignments.
• Companies from the banking/financial sector as well as those companies that will be used during seminars must not be selected.
• You must include the relevant pages of the financial statements, for example; statement of profit or loss, statement of financial position and statement of cash flows.
• Please ensure that, information obtained from sources such as text book, annual report, and company’s website as well as other relevant websites are properly referenced.