CORPORATE FINANCE
Group assignment 1 _ Financial Analysis & Forecasting
Due: 17.00, 24th November 2023
Requirements: Each group will analyse your assigned firm’s financial statements using the
guidelines below. Then, you will create a video to record your group’s presentation.
Please note that you must also prepare the written report consisting of both words and model
snapshots (if needed). But you will not need to submit it by the due date above, and it will be submitted
together with Group assignment 2.
Please be noted that, for the presentation:
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All members have to present and show their faces during the presentation. The maximum
presentation time is 25 minutes, with no minimum time.
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Remember to submit the “Group evaluation form”. The form can be found in the assignment
submission section. This is required!
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A link to your presentation video must be added at the beginning of the form!
▪
You must submit the presentation slides and the Group evaluation form by this deadline. The
report will be submitted at the module’s end, together with the 2nd topic assignment. The due
date will be announced later.
Good luck!
Group Assignment 1_ Financial Analysis & Forecasting
GUIDELINE FOR COMPANY FINANCIAL ANALYSIS
Please note that this is just a guideline for the assignment. You can use your ideas for designing
the report and presentation. We will appreciate the extra contribution and deeper analysis of
the company!
You should go to the corporation’s website and other relevant sources (see the recommendation at the
end of this guideline) to get audited financial statements of at least three latest consecutive years and
other information needed for analysis.
The analysis should contain the following information:
1. An introduction: (about a page maximum)
o The company’s name, postal address, and (if available) internet address;
o The year in which your company was founded and the state in which it is incorporated;
o The company’s independent (external) audit firm;
o The company’s primary line(s) of business;
o Size of the company, accompanied by an explanation of the company characteristics that
provide a measure of its Size;
o The ticker symbol for your company and the stock exchange on which its shares are listed;
o Membership of the company’s Board of Directors, using whatever characteristics you think
are most relevant to depict the composition of the Board [briefly explain each];
o The majority-owned subsidiaries [maximum of four, ranked by Size] of your company.
2. Analysis of Income Statement and Balance Sheet
a. Review the most recent year-end balance sheet (at least three consecutive years) of the
company and indicate the following:
o
The amount of total current assets;
o
The amount of total non-current assets;
o
The amount of total current liabilities;
o
The amount of total non-current liabilities;
o
The amount of total stockholders’ equity.
Hint: You should use common-size analysis for this part instead of using absolute value when
comparing with the industry average or rivals.
b. Review the most recent year’s (at least three consecutive years) income statement and
indicate the following:
Group Assignment 1_ Financial Analysis & Forecasting
o
Total (operating) revenues;
o
Cost of goods sold (if listed);
o
Total expenses (before income taxes)
o
Earnings per common share.
Hint: You should use common-size analysis for this part instead of using absolute value when
comparing with the industry average or rivals.
c. Ratio Analysis
o
Liquidity ratios
o
Efficiency ratios
o
Long-term solvency ratios
o
Profitability ratios
o
Market value ratios
3. Forecasting & Scenario Analysis
a. Forecasting
You need to do the forecasting for the next three years. After that, please discuss all the
assumptions made for the 3-year forecasting period and briefly interpret your outcomes
from the forecasting.
b. Scenario Analysis
You need to forecast the three scenarios (best, base and worst case) for the revenue within
the next three years. After that, please discuss all the assumptions made for the three
scenarios forecasting period and briefly interpret your outcomes from the forecasting.
Notes: The following are my recommendations on useful sources of information you may need for your
analysis:
•
The company’s annual audited reports are useful material for your analysis
•
•
•
You could find some (not all) industry average ratios on financial websites such as:
o
www.cafef.vn
o
www.cophieu68.com
o
www.vndirect.com.vn
o
www.stockbiz.vn
o
www.vietstock.vn
o
www.investing.com
o
www.finance.yahoo.com
You may need charts, tables, etc., to illustrate your idea.
It would be better to compare the ratios with the industry average or competitors.
The end!
Group Assignment 1_ Financial Analysis & Forecasting