INDIVIDUAL REPORT

Scenario:

You are working for a consulting firm named QM Strategic Consulting. One of your responsibilities is to advise firms on their financial position and performance. Your tasks include assisting companies to analyse their current financial position and performance compared to the previous financial year.

Required task:

This assessment requires you to conduct a detailed analysis of the financial position and performance of an Alliance Aviation Services Limited (AQZ) using the financial ratio categories as per the five (5) questions given on page 5. The report should also include trend analyses for the 2017 and 2018 financial years.

Instructions to obtain data:

• From Data Analysis Premium database, go to the search bar on the top right and enter the relevant company’s Alliance Aviation Services Limited (AQZ).

2. The displayed page summarises the general information about the company including the sector and industry in which it operates, the total market capitalisation of the firm, and the latest closing share price,
3. On the left-hand side of the screen, select Financial The displayed page shows annual and interim information for your assigned company (in the View: option, make sure you choose Annual not Interim data). On the page control bar at the top, you will see that the first three tabs are the company’s summarised annual reports (Profit & Loss, Balance Sheet and Cash Flow). Additional information such as the number of shares outstanding at the end of the period is also given in these statements for different years.
4. On the page control bar at the top, you can select the Rev/Exp tab to access the Cost of Goods Sold (COGS) for each company for different years.

Now, use your knowledge and judgment of the given scenarios and provide your detailed financial analysis by answering ALL the five (5) questions given on page 5. Your analysis will be marked according to the Individual Assignment Marking Rubric located on pages 7–10.

 

IMPORTANT NOTES:

• Answer all five (5) questions on the next page.
• No industry ratios are provided. Sales can be assumed to be ALL on credit unless otherwise
• Show ALL workings of the ratio calculations. Marks will be deducted if the workings are not
• Please ensure that you analyse the ratios and not just describe the ratio values for Questions 1–4.

 

 

Question 1

1. Calculate the values of two (2) liquidity ratios of the company for 2017 and 2018, and address two objectives: (a) the overall liquidity, and (b) the liquidity of specific current asset accounts. That is, one (1) ratio relates to the overall liquidity and one (1) ratio relates to the liquidity of specific current asset accounts. (**Refer to the note below)

 

1. Analyse the liquidity position of the company in 2018 as compared to 2017 based on the ratios chosen. (Maximum 250 words)

• Given the ratios above, provide one (1) financial advice to the company in regards to improving the overall liquidity position. (Maximum 50 words)

 

Question 2

2018. Calculate the values of two (2) capital structure ratios of the company for 2017 and 2018.

 

1. Analyse the capital structure of the company in 2017 as compared to 2018 based on the ratios chosen. (Maximum 250 words)

Question 3

1. Calculate the values of two (2) profitability ratios of the company for 2017 and 2018, and address two objectives: (a) the cost control, and (b) the returns on invested capital. That is, one (1) ratio for the cost control and one (1) ratio for the returns on invested capital. (**Refer to the note below)

1. Analyse the profitability position of the company in 2018 as compared to 2017 based on the ratios chosen. (Maximum 250 words)

• Based on your analysis above, recommend one (1) piece of financial advice to improve the profitability of the company for 2019. (Maximum 50 words)

Question 4

2018. Calculate the values of two (2) asset management ratios of the company for 2017 and 2018.

1. Analyse the asset management efficiency position of the company in 2017 as compared to 2018 based on the ratios chosen. (Maximum 250 words)

Question 5

Based on your analyses of the ratios in Questions 1–4 above, do you recommend investors to invest in this firm? Justify your decision carefully by providing two (2) reasons.

(Maximum 150 words)

** Note: Marks will be affected if the both ratios address only one objective.

Referencing list

Referencing: Harvard Style.

Financing Enterprises

 (out of 100 marks)

Question 1(i)	LIQUIDITY RATIO CALCULATION
Ability to conduct correct ratio calculations   (10%)	·    Very little or no provision of ratios or calculations contain serious errors	·    Correct provision of less than two ratios or both addressing the same objective with some errors in calculation	·    Correct provision of two ratios which address two objectives with some acceptable errors in calculation	·    Correct provision of two ratios which address two objectives with minimal errors in calculation	·    Correct provision of two ratios which address two objectives with no errors in calculation
	0–2	3–4	5–6	7–8	9–10
Question 1(ii)	LIQUIDITY INTERPRETATION AND ANALYSIS
Ability to have a conceptual understanding of the liquidity position by providing a reasonable interpretation and analysis   (10%)	·    Poor interpretation of the concept and understanding of liquidity ratios ·    Very basic or no description of the liquidity position, making no reference to financial flexibility and in comparison with previous year	·   Average interpretation of the concept and understanding of liquidity ratios ·    Basic description of the liquidity position, making no reference to financial flexibility and in comparison with previous year	·   Good interpretation of the concept and understanding of liquidity ratios ·   Good analysis of the liquidity position with little reference to financial flexibility and in comparison with previous year	·    Very good interpretation of the concept and understanding of liquidity ratios ·   Very good analysis of the liquidity position making reference to financial flexibility and in comparison with previous year	·    Excellent interpretation of the concept and understanding of liquidity ratios ·    Excellent analysis of the liquidity position making reference to financial flexibility and in comparison with previous year
	0–2	3–4	5–6	7–8	9–10
Question 1(iii)	LIQUIDITY FINANCIAL ADVICE
Ability to provide a sound and reasonable advice to improve liquidity   (5%)	·    Very little or irrelevant suggestions to improve liquidity ·    Major mistakes in suggestions	·   Advice based on average suggestions to improve liquidity ·    Some mistakes in suggestions	·    Advice based on correct and very good suggestions to improve liquidity ·    Minor mistakes in advice/ suggestions	·    Advice based on correct and very good suggestions to improve liquidity ·   No mistakes in advice/ suggestions	·    Advice based on correct and excellent suggestions to improve liquidity ·    No mistakes and advice contains elements of critical analysis
	0–2	2–3	3–3.5	3.5–4	4.5–5

 

 

Question 2(i)	CAPITAL STRUCTURE RATIO CALCULATION
Ability to conduct correct ratio calculations   (10%)	·    Very little or no provision of ratio or calculations contain serious errors	·    Correct provision of less than two ratios with some errors in calculation	·    Correct provision of two ratios with some acceptable errors in calculation	·    Correct provision of two ratios with minimal errors in calculation	·    Correct provision of two ratios with no errors in calculation
	0–2	3–4	5–6	7–8	9–10
Question 2(ii)	CAPITAL STRUCTURE INTERPRETATION AND ANALYSIS
Ability to have a conceptual understanding of the capital structure position by providing a reasonable interpretation and analysis   (10%)	·    Poor interpretation of the concept and understanding of capital ratios ·    Very basic or no description of the capital structure position, making no reference to its financing its overall operations/growth and in comparison with previous year	·    Average interpretation of the concept and understanding of capital structure ratios ·    Basic description of the capital structure position, making little reference to its financing its overall operations/growth and in comparison with previous year	·    Good interpretation of the concept and understanding of capital structure ratios ·    Good analysis of the capital structure position in relation to its financing its overall operations/growth and in comparison with previous year	·    Very good interpretation of the concept and understanding of capital structure ratios ·    Very good analysis of the capital structure position in relation to its financing its overall operations/growth and in comparison with previous year	·    Excellent interpretation of the concept and understanding of capital structure ratios ·    Excellent analysis of the capital structure position in relation to its financing its overall operations/growth and in comparison with previous year
	0–2	3–4	5–6	7–8	9–10
Question 3(i)	PROFITABILITY RATIO CALCULATION
Ability to conduct correct ratio calculations   (10%)	·    Very little or no provision of ratio or calculations contain serious errors	·    Correct provision of less than two ratios or both addressing the same objective with errors	·    Correct provision of two ratios which address two objectives with some acceptable errors in calculation	·    Correct provision of two ratios which address two objectives with minimal errors in calculation	·    Correct provision of two ratios which address two objectives with no errors in calculation
	0–2	3–4	5–6	7–8	9–10

 

 

Question 3(ii)	PROFITABILITY INTERPRETATION AND ANALYSIS
Ability to have a conceptual understanding of the profitability position by providing a reasonable interpretation and analysis   (10%)	·    Poor interpretation of the concept and understanding of profitability ratios ·    Very basic description	·    Average interpretation of profitability ratios in comparison to previous year ·    Little analysis of ratios	·   Good interpretation and analysis of profitability ratios in comparison to previous year	·   Very good interpretation and analysis of profitability ratios in comparison to previous year	·   Excellent interpretation and analysis of profitability ratios
	0–2	3–4	5–6	7–8	9–10
Question 3(iii)	PROFITABILITY AND FINANCIAL ADVICE
Ability to provide a sound and reasonable advice based on financial ratio   (5%)	·    No advice given or advice based on little or erroneous explanation with no element of analysis	·    Advice based on explanation with no element of analysis to improve profitability	·    Advice based on description and some good analysis to improve profitability	·    Advice based on very good analysis to improve profitability	·    Advice based on excellent analysis including critical analysis to improve profitability.
	0–2	2–3	3–3.5	3.5–4	4.5–5
Question 4(i)	EFFICIENCY OF ASSET MANAGEMENT RATIO CALCULATION
Ability to conduct correct ratio calculations   (10%)	·    Very little or no provision of ratio or calculations contain serious errors	·    Correct provision of less than two ratios with some errors in calculation	·    Correct provision of two ratios with some acceptable errors in calculation	·    Correct provision of two ratios with minimal errors in calculation	·    Correct provision of two ratios with no errors in calculation
	0–2	3–4	5–6	7–8	9–10

 

 

Question 4(ii)	EFFICIENCY OF ASSET MANAGEMENT INTERPRETATION AND ANALYSIS
Ability to have a conceptual understanding of the efficiency of asset management position by providing a reasonable interpretation and analysis   (10%)	·    Poor interpretation of the concept and understanding of asset management efficiency ratios ·    Very basic or no description of asset management efficiency with regards to utilisation of its assets to generate sales compared to its previous year	·    Average interpretation of asset management efficiency ratios ·    Basic description of asset management efficiency with regards to utilisation of its assets to generate sales compared to its previous year	·    Good interpretation of asset management efficiency ratios ·    Good analysis of asset management efficiency with regards to utilisation of its assets to generate sales compared to previous year	·    Very good interpretation of asset management efficiency ratios ·    Very good analysis of asset management efficiency with regards to utilisation of its assets to generate sales compared to its previous year	·    Excellent interpretation of asset management efficiency ratios ·    In-depth analysis of asset management efficiency with regards to utilisation of its assets to generate sales compared to its previous year
	0–2	3–4	5–6	7–8	9–10
Question 5	RECOMMENDATION TO INVESTORS
Ability to provide a relevant and reasonable recommendation based on financial ratios to investors   (5%)	·    No recommendation given or advice based on little or erroneous explanation with no element of analysis	·    Mainly descriptive recommendation based on average understanding of the company financial position ·    No element of analysis	·    Recommendations based on good understanding of the company financial position using the ratios and overall investment prospect ·    Contains some analysis	·    Recommendations based on very good understanding of the company financial position using the ratios and overall investment prospect ·    Contains some analysis	·    Recommendations based on excellent understanding of the company financial position using the ratios and overall investment prospect ·    Contains critical analysis
	0–2	2–3	3–3.5	3.5–4	4.5–5
	REFERENCING AND FORMATTING
Referencing, formatting, style and clarity of data presentation   (5%)	·    Poor referencing with substantial errors (in-text citation, reference list); poor formatting and paragraphing, writing style is unclear and many grammatical, spelling and punctuation errors	·    Satisfactorily referenced with some errors (in-text citation, reference list); satisfactory formatting, less than coherent writing style and a number of grammatical, spelling and punctuation errors	·    Satisfactorily referenced (in-text citation, reference list); good formatting and paragraphing, coherent writing style and some grammatical, spelling and punctuation errors	·    Well referenced (in-text citation, reference list); well-structured formatting and paragraphing, coherent writing style and very few grammatical, spelling and punctuation errors	·    Excellently referenced (in-text citation, reference list); well- structured formatting and paragraphing, coherent writing style and minimum grammatical, spelling and punctuation errors
	0–2	2–3	3–3.5	3.5–4	4.5–5