ACCT3013: Financial Statement Analysis
Financial Statement Analysis
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ACCT3013: Financial Statement Analysis
Individual Assignment
The individual assignment is designed for students to demonstrate and apply the knowledge and skills covered
in lectures/tutorials to a real-world financial analysis scenario.
Each student will be required to perform an analysis of the financial statements for one of the three listed
Australian companies that will be randomly assigned through Canvas. These companies are:
1. Car Group Limited (ASX code: CAR)
2. Computershare Limited (ASX code: CPU)
3. REA Group Limited (ASX code: REA)
You will then collect information through public sources in order to critically evaluate the financial
performance/position of a company in addition to using the restated financial information in the templates for
each company provided on Canvas. Students will be assessed on their ability to formulate an understanding
of an entity’s operations using information obtained from research and how this is reflected through their
financial statements. To succeed in this component, students need to demonstrate their ability to:
• Locate and collect financial and operational information of a company.
• Understand the strategic direction of the company and competitive advantage of the company within
the context of the relevant industry characteristics.
• Use pro-forma financial statements of the company to complete a financial analysis template.
• Use financial statement information to assess the performance of the company
• Draw insights through analysis of financial ratios to arrive at conclusions on the financial
position/performance of the company
The individual assignment is worth 15% of your final mark and is due at11:59pm on Monday, 20th May 2024.
Submission Instructions
Your submission should address the questions outlined in the next page. Supplementary information such as
the required ratio calculations and forecast financial information can be done in MS excel and copy/paste into
the document. Any information placed in an Appendix, including the list of references, will not be counted
towards the word limit.
Format: The report is to be submitted using Word doc, 12-point font (Times New Roman, Arial or
Cambria), paragraphs formatted with 1.5-line spacing, and with margins not less than 2cm.
File name: Your submission should be saved and named using the following format: acct3013_IA_SID
Referencing: Students should follow the rules set out in the APA 7th referencing style. Please refer to the
library site for further information and expectations about consistent referencing:
https://libguides.library.usyd.edu.au/citation/apa7
Word limit: The word limit for the entire report is 800 words.
Late Submissions
A student that submits an assessment late (after the official due date), and is not covered by an approved
Special Consideration, or submits after the extension granted under a Special Consideration, the penalty of
5% of the Total Available Marks per day or part thereof, until the close date will apply, after which the student
will receive 0 marks.
Assessment task (30 marks):
1. For the company assigned through Canvas, briefly describe the company’s strategy. [2 Marks]
2. Evaluate the industry in which the assigned company operates using the competitive rivalry force from the
Porter 5-forces model. [4 Marks]
3. For the company assigned through Canvas, using the respective information given in the template also
provided on Canvas complete the financial ratio analysis with the traditional and alternative approach to
decomposition of profitability (excluding any non-recurring items that have been identified in the template).
[6 Marks]
4. With reference to the condensed financial statements and ratio analysis competed from Part 3, critically
evaluate the financial performance of the company. You should evaluate the company’s performance by
identifying the key drivers of profitability and incorporate your understanding of the competitive landscape
in the industry and company strategy gained from completion of Parts 1 and 2. [8 Marks]
5. Provide a short report on the recent half year results for the company assigned through Canvas. Comment
on any changes to your analysis provided in Part 4. [5 Marks]
6. Briefly analyse the company’s interest-bearing debt situation. Given the increase in interest rates over
2022/23, what impact do you expect this to have for the company. What conclusions do you make about the
requirement for funding of the company? Calculate at least one financial ratio in support of your conclusions.