Assignment Guidance:
Ac#ng as a Financial Analyst working for an Investment Bank, you are required to write an
individual 2000-word financial report on a chosen listed fashion company / Group (on the
stock market – has shares).
•The Introduc#on should include a brief summary of the financial posi#on and health
of the company for the last one year.
•You need to calculate the following financial ra#os on your chosen company:
Profitability, Gearing, Liquidity and Investment Ra#os. This should be based on the last
two Annual Financial Statements (Income Statement, Balance Sheet and Cash Flow).
An analysis talking about the economy and the company is also required individually.
•In the context of your financial analysis, you should also highlight any weaknesses or
strengths emerging, impac#ng the company overall performance. Hence For each
sec#on of ra#os, you are required to:
– Comment on the changes in the ra#os from one year to another and whether
this has a posi#ve or a nega#ve impact on the company.
– What sort of factors affected those numbers (macroeconomic factors, company
related decisions, leadership changes…etc.
•You need to provide a “Stock Advice” to investors on whether they should “Buy”, “Sell”,
“Hold”, or “Neutral”. This sec#on should also include a list of the Risks facing the
business. You are encouraged to give your opinion on the likely future general
financial condi#ons of the company in the context of the results of the ra#os.
•Finally, you are required to present a list of realis#c recommenda#ons to improve the
company’s financial performance, considering the results of your ra#os and any
company / economic variables.
•The Appendices (not included in the word count) should include the following:
– The Financial statements (Income Statement, Balance Sheet and Cash Flow of the
chosen company) extracted from the company’s annual report and
downloaded from its website.
– You are required to show the working / calcula#ons of your ra#os (Formula +
answer)