Posted: December 28th, 2015

Performance evaluation:Analyse the historical (for the last 5 years) performance of a listed company and present your findings in the form of a report, which will cover both qualitative and quantitative performance elements in a logical cohesive forma

Financial literacy helps you to become a better manager. Understanding the financial side of the business will make you more effective on the job and will make your work life more meaningful. The two core activities of Financial Management are to manage profitability and manage liquidity. If either of these two activities are neglected, it can lead to the demise of an organisation. Hence, these two aspects guide the decision making for any manager. Issuing bonds (debt) and/or issuing stocks (equity), enables the corporation to manage the money it needs to finance the assets of the business. Therefore, being able to value these financial securities is also an important skill to have.

Requirement:

Your task is to perform the following:

1. Performance evaluation:Analyse the historical (for the last 5 years) performance of a listed company and present your findings in the form of a report, which will cover both qualitative and quantitative performance elements in a logical cohesive format.

Please note: If you are working for a company listed on the stock exchange, use this opportunity to complete the exercise on that company. Otherwise, feel free to value a competitor or a company that interests you. However, note that the company you select must be listed on a stock exchange and have a history of paying dividends.

The qualitative component of your discussion should include BRIEF background information on the company including how they are placed within the industry, and a BRIEF overview of the recent stock price movements for the company. The quantitative component should include an initial analysis of trends in the items contained in the profit and loss statements and balance sheets, followed by an analysis of important ratios measuring different aspects of the company performance: