Finance for Managers

This is an individual assignment although you will be working together for the first part. The word count is 800 words (not to include references, tables and equations) with a 10% margin for Part B and 400 words for Part C.
Part 1
This section must be done with a partner.
You and your partner will be allocated a company for which you need to calculate two years of ratios. You are required to work with a partner of your choosing to calculate the ratios. Please let me know, by email ***
The calculation of the ratios is worth 30 marks and it is explained how you should do this in the section Calculate the Ratios below. You will both need to submit the calculations as part of the overall assignment but, of course, the Turnitin score for this section will be ignored as your submission should be identical to that of your partner’s. Please provide the Amadeus spreadsheets you have used in an appendix.

Part 2 (approx. 800 words)
This section must be done individually.
Using the ratios calculated in Part 1 prepare a report analysing the performance of and comparing the performance of the company over the last 2 years under the following headings:
a) Profitability,
b) Liquidity,
c) Working capital management,
d) Solvency & risk,
e) Shareholder return,
f) Overall financial performance.

Part 3 (approx. 400 words)
This section must be done individually.
Explain what is meant by the following concepts and give examples.
• Separate entity concept
• Accruals/matching concept
• Going concern concept
• Prudence concept
Calculate the Ratios
A spreadsheet will be added to the assignment tab which will show which company has been allocated to you.
You then need to access the companies’ financial statements. A simplified version is available via the database Amadeus which is available to you after signing in with your university details. Search for Amadeus in the university catalogue
search for Amadeus
and choose the Amadeus database, online access
Then click on Resource available at Amadeus
Log in using your university details
Then enter your company name.
Select the worksheet view at the top of the Global standard format section, you can then open the file in excel.
You must compute the ratios yourselves rather use than the ones provided by Amadeus and they MUST be calculated as I have shown in the lecture and as specified below. Do show the numerator and denominator as well as the actual value when you discuss the ratio so I can give you a mark if you have part of it
correct. YOU WILL ONLY GET MARKS FOR EACH RATIO IF YOU HAVE COMPUTED THE RATIOS AS SHOWN BELOW.
The ratios you need to calculate are included below. It is these you must calculate. You will not gain any marks for other ratios and will lose marks if you do not calculate these. The calculation part is worth 30% and if you use a spreadsheet other than Amadeus you will receive 0 for this section. All the information you need to score 30/30 is given but you must follow the instructions carefully to achieve the mark.

I am not asking you to compute ratios which require dividend data.
Commented [LH3]: Does your balance sheet show “th EUR” at the top of the columns?
If yes, you do not need to multiply the number of shares outstanding by 1,000.
If it shows just “EUR”
it means the financial statements are not in thousands whereas the number of shares outstanding will be in thousands. Make sure, when you are computing the PE ratio, that you multiply the number of shares outstanding by 1,000 so all your data is in the some denomination.