Business Administration Programmes
Assignment 1
Course: FINA802 Financial Intelligence
Streams: 212-217
Lecturer: Dr John Kommunuri
Due: 4 pm, Friday, August 25, 2023 (soft copy submission through Moodle
only)
POINTS to NOTE:
1. There are 100 marks for this assignment which is 30% of the final course grade.
2. The word limit for this assignment is 2000 words (+/-10%), excluding references,
figures, tables, and appendixes.
3. Use Arial or Times New Roman font size 12 and 1.5 line spacing.
4. Use the standard title page template. A reference list is required.
5. Ensure you follow academic citation and referencing requirements, as failure to
do so may invoke penalties. Use APA (7th ed.).
6. You may submit your assignment once as a draft submission (Moodle/Turnitin) to
check the similarity prior to making your final submission.
7. Late submissions incur a 5% penalty (5 marks) for each 24-hour period up to 96
hours (after that time, your mark will be recorded as zero).
8. An extension may be granted if, within the prescribed timeframe, you submit an
'Assignment Extension Application' form with supporting documentation (e.g., a
medical certificate) to the Programme Administration Unit.
2
As set out in your Course Outline, this assignment requires you to:
• LO3 Thoroughly analyse financial statements and make appropriate forecasts
and recommendations.
Assignment Task
As a recent graduate you have joined a consulting company for which you are tasked
to analyse the financial statements and make an investment recommendation for a
company allocated to you. To communicate this, you are expected to complete a
report which is to include:
1. A succinct executive summary and introduction to the company.
10 marks
2. An analysis of the latest annual report of the company allocated to you and
analyse the company's financial statements for the latest TWO financial
periods. Using the following categories of financial ratios, analyse the financial
health of the company and its future growth prospects.
a) Profitability Ratios
b) Liquidity Ratios
c) Asset Management Ratios
d) Capital Structure Ratios
e) Investor Ratios
Note: Refer to the list of ratios in the attached formulae sheet.
50 marks
An analysis of the key climate-risk disclosures, their potential financial impacts,
and risk management strategies for your allocated company. The External
Reporting Board (XRB) has played a great part in addressing climate change
by establishing a climate-related disclosure framework for Aotearoa New
Zealand and publishing the final standards effective from 2023. For the
company you are investigating, discuss how this information could be useful in
making a better financial decision about the company.
20 marks
3
3. Based on your evaluation, recommend whether to invest in your assigned
company. Make appropriate earnings and stock price forecasts to support your
recommendation. You may refer to the company's current price-sensitive
announcements.
10 marks
4. You must demonstrate your ability to address the issues raised and
support your arguments with appropriate data.
10 marks
4
Appendix 1: Formulae Sheet
FINANCIAL* Year-end figures may be used (although averages provide better results).
Ratio Formulae
Gross Profit Margin
Gross Profit *100
Sales (revenue)
Operating Profit Margin
Earnings before interest and tax *100
Sales (revenue)
Operating Profit Margin
Net Profit after tax *100
Sales (revenue)
Return on Total Assets
Earnings before interest and tax *100
Total Assets*
Return on Equity
Net Profit after tax *100
Total Equity*
Current Ratio
Current Assets
Current Liabilities
Liquid (quick) Ratio
Current Assets –Inventory
Current Liabilities
Asset Turnover
Sales (revenue) *100
Total Assets*
Age of accounts receivable (days)
Accounts Receivable * 365
Credit Sales
Accounts Payable deferral period (days)
Accounts Payable * 365
Cost of Sales
Debt Ratio
Total Liabilities *100
Total Assets
Debt to Equity Ratio (Gearing Ratio) Total Liabilities *100
Total Assets
Interest Coverage (x times)
Earnings (Profit) before Interest and Tax
Interest Expense
Earnings per Share
Profit (surplus) after tax
Ordinary Shares issued*
Dividends per Share
Cash dividends Paid.
Ordinary Shares issued*
Dividend Payout Ratio
Dividend Per Share *100
Earnings Per Share
Dividend Yield % Dividend per Share
Market price per Share
Price Earnings Ratio
Market Price per Share
Earnings per Share
5
FINA802 Assignment 1 Marking Rubric
Student name
Student ID
Grading D- (0% - 39%) D (40% - 49%) C (50% - 64%) B (65% - 79%) A (80% – 100%) Marks
Title page, Executive
Summary, and
Introduction
Poor executive summary;
shows little understanding of
the executive summary. The
Introduction is poorly
written. No or very little
information is provided
Poor executive
summary; shows little
understanding of the
executive summary.
The Introduction is
poorly written. No or
very little information is
provided
Provides a fair summary of the
few points of the report. The
Introduction is provided but
not comprehensive. Limited
information is provided
Provides a comprehensive
summary of some points of
the report. The
Introduction is well-written
and explained.
Provides a comprehensive
summary of all the report's
key points. The Introduction
is comprehensive and well-
structured, with adequate
contextual relevance.

MARK /10 >=0 and <4 >=4 and <5 >=5 and <6.5 >=6.5 and <8 >=8 and <10
Financial Statements,
Analysis, appropriate
earnings, and stock
price forecasts
The recommendation is not
based on an adequate
analysis of financial ratios.
Most ratios are incorrectly
calculated, and several ratios
are ignored. Several ratios
are incorrectly calculated.
Minimal/no comparisons
made between the latest two
accounting periods. Earnings
and stock price forecasts do
not correctly represent the
company's prospects -no
reference was made to the
company's recent price-
sensitive announcements.
Limited/inadequate
analysis of financial
statements. Several
ratios are incorrectly
calculated. Minimal/no
comparisons made
between the latest two
accounting periods and
with other companies.
Earnings and stock price
forecasts do not
correctly represent the
company's prospects—
no evaluation of the
company's recent price-
sensitive
announcements.
Financial statement analysis
uses most of profitability,
liquidity, asset management,
capital structure, and investor
ratios and overall done
correctly. Some/most ratios are
calculated correctly. Minimal
comparisons were made
between the latest two
accounting periods and
companies. Earnings and stock
price forecasts do not correctly
represent the company's
prospects—limited reference to
the company's recent price-
sensitive announcements.
Financial statement
analysis uses most of the
profitability, liquidity, asset
management, capital
structure, and investor
ratios. Most/all ratios are
calculated correctly—good
comparisons are made
between the latest two
accounting periods and
companies to draw
conclusions. Earnings and
stock price forecasts are
presented—a good
evaluation company's
price-sensitive
announcements.
Analysis of financial
statements using
profitability, liquidity, asset
management, capital
structure, and investor
ratios done correctly. All
ratios are correctly
calculated. Excellent
comparisons were made
between the latest two
accounting periods and
companies to draw
conclusions. Earnings and
stock price forecasts are
presented. Excellent
evaluation of the company's
recent price-sensitive
announcements.

MARK /50 >= 0 and <20 >= 20 and <25 >= 25 and <32.5 >= 32.5 and <40 >=40 and <50
Analysis of non-
financial Information
Inadequate analysis of
knowledge from a variety of
sources. Significant non-
financial measures are
ignored. Demonstrates a
Limited analysis of
knowledge from a
variety of sources.
Significant non-financial
measures are ignored,
A satisfactory synthesis of
knowledge from a variety of
sources. Some non-financial
measures are discussed and
related to the company's
A good synthesis of
knowledge from a variety
of sources. Some significant
non-financial measures
(e.g., sustainability, climate
Excellent synthesis of
knowledge from a variety of
sources. Significant non-
financial measures (e.g.,
sustainability, climate
6
superficial understanding of
the importance of non-
financial information for
decision-making.
and the discussion lacks
in-depth analysis. Some
logical development of
ideas. Demonstrates a
superficial
understanding of the
importance of non-
financial information
for decision-making.
performance and investment
decisions. Adequate
understanding is apparent.
Shows ability to apply
understanding to the context.
disclosures) are discussed
in depth and related to the
company's performance
and investment decisions.
Shows in-depth
understanding of the
relevance of non-financial
information for investment
decision-making.
disclosures) are discussed in
depth and related to the
company's performance and
investment decisions.
Articulates own perspective
with logical development.
MARK /20 >=0 and <8 >=8 and <10 >=10 and <13 >=13 and <16 >=16 and <20
Conclusions and
Recommendations
Many aspects are not
covered and discussed.
Superficial conclusions are
drawn from the discussion.
Failed to make appropriate
recommendation.
Some analysis of
information and some
aspects covered. Some
conclusions are drawn
from the discussion.
Inadequate justification
of recommendation.
Good analysis of information
and most aspects covered.
Some logical conclusions are
drawn from the discussion. The
recommendation is justified.
Very good analysis of
information and all aspects
covered. Logical
conclusions are drawn from
the discussion. The
recommendation is mainly
justified.
Comprehensive information
and all aspects covered.
Logical conclusions are
drawn from the discussion.
The recommendation is
appropriately justified.
MARK /10 >=0 and <4 >=4 and <5 >=5 and <6.5 >=6.5 and <8 >=8 and <10
Report formatting
and referencing
Poor report; did not
completely follow the
structure; headings and sub-
headings in each section. No
or incorrect referencing
Poor report; did not
completely follow the
structure; headings and
sub-headings in each
section. No or incorrect
referencing
Followed the structure but with
few headings and sub-headings
in each section. Some
referencing but incorrect use of
APA 7
Followed each section's
structure, headings, and
sub-headings. Some correct
use of APA 7 referencing
Strictly followed each
section's headings and sub-
headings. Correct use of
APA 7 referencing
MARK /10 >=0 and <4 >=4 and <5 >=5 and <6.5 >=6.5 and <8 >=8 and <10
TOTAL (Out of 100):