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Use the Internet to research an annual report of a retailcompany. Then, imagine you are an investor or creditor and suggestthe ratios that you believe would provide an investor or creditorwith the most important information needed to make accuratepredictions about the company’s financial condition. When analyzinga company, is it more important to compare the ratios tocompetitors or to the company’s previous history? Provide arationale for your response. Note: You must provide a link orinstructions to the researched report.

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Elin Hessel
Elin HesselLv2
18 Nov 2018

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Use supporting details for discussion.. Use the Internet toresearch an annual report of a retail company. Then, imagine youare an investor or creditor and suggest the ratios that you believewould provide an investor or creditor with the most importantinformation needed to make accurate predictions about the company’sfinancial condition. When analyzing a company, is it more importantto compare the ratios to competitors or to the company’s previoushistory? Provide a rationale for your response. Note: You mustprovide a link or instructions to the researched report.

Company name: ikeGPS Group Ltd

Discussion

Profitability

Introduce why it is important to assessprofitability

Outline the basic ratios used to assess profitability, andprovide an analysis of your selected company’sprofitability

Refer to the appendix where you have calculated or obtainedthe relevant profitability ratios, and your graph.

You could show the graph in the main body of the reportrather than the appendix if you like – however, if you have thegraph in the main body, you do need to discuss it!

Briefly comment on the trends shown by the ratios, and inthe graph

Conclude as to whether or not this company isprofitable

300 – 350 WORDS

Liquidity

Introduce why it is important to assess liquidity

Outline the basic ratios used to assess liquidity, andprovide an analysis of your company’s liquidity position relativeto the previous year

Refer to the appendix where you have calculated or obtainedthe relevant liquidity ratios

Conclude as to whether or not this company is demonstratinggood liquidity

300 – 350 WORDS

Financial Structure

Introduce why it is important to assess financial structure(or gearing)

Outline the basic ratios used to assess financial structure,and provide an analysis of your company’s financial structurerelative to the previous year

Refer to the appendix where you have calculated or obtainedthe relevant financial structure ratios

Conclude as to whether or not the company shows a strongfinancial structure

300 – 350 WORDS

Future plans and Investor informationFuturePlansDiscuss what plans the company has announced to thepublic, and how these have impacted on the share price. Thisinformation can be found from a variety of sources:

Annual report

NZX company research

Newspaper article (preferably recent articles)

Investor Information

Introduce why it is important to assess investorinformation

Outline the basic ratios used to assess investorinformation, and provide an analysis of the trends shown in ‘shareprice performance’ graph

Refer to the appendix where you have calculated or obtainedthe relevant ratios, plus graph

Alternatively, the graph can be displayed in the main bodyof the report

Conclude as to whether or not this company would be a goodinvestment

You must include a discussion on income vs growth

300 – 350 WORDS

Conclusions & Recommendation

Pull together the main points made from each part of thediscussion

Conclusion should not have any new information

Make a recommendation to the prospective investor

You can recommend to buy shares, or not to buy shares in thecompany being investigated

Recommendation must clearly flow from the discussion andconclusions

200 – 250 WORDS

(Use NZX website, from its financial profile, we could get thischart for 4 years.)

Annual report from NZX website, is used to analysis thiscompany.

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