Finance and accounting Topic: Analysis of Financial Performance and Position

MFR Coursework Assignment

An Analysis of Financial Performance and Position: Sports Direct International PLC and JD Sports Fashion PLC.
An investor is considering buying a sizeable shareholding in one of these two companies operating in the same sector, and has asked for your overview of the performance and position of the 2 organisations from a financial perspective.

Write a report giving a detailed analysis of the financial performance and position of each of the two companies over a 3 year period, making comparisons between them.

You should consider the Annual Reports for the 3 financial years 2017, 2016, 2015. The word count for this assignment is 3000-3500 words. As a minimum the structure of your report should contain:
1. Introduction or Executive Summary (5%)
2. An analysis of sales and profitability (20%)
3. An analysis of cash flow performance and liquidity position (20%)
4. An analysis of efficiency (15%)
5. A consideration of the funding structure (debt vs equity) of the companies (15%)
6. An analysis of the share price movements over the 3 year period. (10%)
7. Conclusion (5%)

Marks available for:
Style, Structure and Presentation (5%)
Quality of Harvard Referencing (5%)
(100%)
Please refer to the issued Marking Rubric for guidance as to the characteristics of a

strong assignment.

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Your analysis must contain, but not be limited to, the consideration of a minimum 6 ratios for both companies for the 3 years.

You should show the calculations of your selected ratios in an Appendix to your report.

The marking scheme gives significant weight to analysis, not description. This means you can for example where appropriate:
– Examine trends in figures and ratios;
– Analyse the reasons why ratios or figures have changed over the 3 year period – not simply describe changes;
– Analyse the reasons why ratios or figures are different between the two companies;
– In giving your reasons, ‘bridge’ financial data to the events in the company – what are the businesses reasons for the financial outcomes?
– Consider the implications for the business of any issues, trends, changes or differences you have identified.

These specific skills and approaches are practised using a case study company in the seminars in weeks commencing 16 th October 2017 and 23 rd October 2017. The assignment, however, also draws on your understanding of the
meaning of financial statements developed throughout weeks 1-7.

Students are advised to read thoroughly the non-financial areas of the Annual Reports, and access business news sources to research the companies. This will enable you to build a ‘bridge’ between your company research and the financial data you are analysing, interpreting and explaining.

The use of tables and graphs to present financial data with clarity is encouraged. Annual Reports for the companies are available on the Investor Pages of the company websites. The Library also has a database of newspaper archives accessible. Please refer to your Module Handbook for details of how to access this or ask in the Library.

Similarly, access to Market and Share Price information is accessible through the Library tab. Please refers to your Module Handbook for details of how to access this or ask in the Library.

The word count is 3000-3500;
– Words included in the bibliography are not included in the word count;- You should only use Harvard referencing;

– Any websites referred to must be properly referenced;