Finance (Financial Analysis)

Paper details
*Please read the assessment criteria carefully!*
Using the template (see Note below), select and calculate 14 relevant ratios that provide insight into the
following aspects:
• Profitability (4 ratios)
• Efficiency (4 ratios)
• Liquidity (2 ratios)
• Gearing (2 ratios)
• Investment (2 ratios)
Your selected 14 ratios should be taken from the module study materials within lectures, seminars, and the
specified core text book, to analyse the financial position, health and performance over the 2-year-period.
Use Year-end figures rather than averages and work to 2 decimal places for percentages and multiples,
and to the nearest whole day when calculating numbers of days. Do note for any ratios you calculate the
marks available for each ratio are for correct figures only.
Include other ratio-related analyses referred to in the module study materials, as appropriate and if
relevant, to complement your ratio analyses. These other complementary analyses should be included
within the Appendices and should be commented upon within the report for Requirement 3. These
analyses will not receive specific marks for individual calculations but will receive marks for their relevant
contribution to qualitative insights within the report overall.
NOTE:
Requirement 1, requires the use of a specified template. You should put this in the Appendices.
• Use the following template as the basis for how you should present your ratio calculations. Column and
row sizes may of course be expanded/contracted to accommodate the content. You may use landscape
orientation to accommodate your workings if preferred.
• Teams who do not use this template should be aware that any other format of submission will result in the
calculations of ratios not being marked, receiving zero marks.
• Any other relevant calculations/techniques should be clearly labelled and shown with workings.
[Requirement 2 – 10% of marks available] Using the indirect method, prepare a Statement of Cash Flows suitable for publication for the most recent
year for the business.
Your financial figures in the Statement should be shown in £000s. Do note that the marks available for each
relevant figure are for correct figures only. Marks are also awarded for layout and presentation of the
Statement.
You must show your workings for this requirement and also fully show each item within the statement. If
workings are not shown, you will receive zero for this requirement.
Your response to this requirement should be featured within the Appendices and labelled clearly.
Note: included within the marks for Requirement 3, there is an additional allocation of 10 marks reflecting
academic judgement applied by the marker/assessor, based on the marker/assessor’s perception of logic,
rationale, thrust, and communication. The composition is on a scale of 10: where 10 = superb; 9 =
excellent; 8 = very good; 7 = good throughout the answer; 6 = good in parts of the answer; 5 = some
merit/goes in the right direction; 4 = some merit but needs improvement; 3 = lacking in conviction; 2 =
inadequate in many places; 1 = inadequate in too many places.
End of requirements
[Requirement 3 – 2,000 words maximum] Derived from your analyses in each of Requirements 1 and 2, prepare a report to the Board that:
a. examines the financial performance, financial health, and associated financial aspects of the
company; [50% of marks available] b. sets out advice they should undertake in an attempt to address the issues and situation you have
derived from your analyses. This should also include limitations of such advice.
[25% of marks available] Note:
You should ignore any potential negative impacts arising from the pandemic for this case scenario