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MN-M001Managing Financial Resources
Module Title: Managing Financial Resources Module Code: MN-M001 Course Work Info: Group Report 2021-22 Learning Outcomes This assignment assesses the following learning outcomes: Critically assess the purpose and content of the primary financial statements. Demonstrate knowledge of the limitations of financial statements as a means of conveying information about a company. Critically appraise various aspects of a company’s operations using ratio analysis. Coursework Requirement You are asked to prepare a group report to demonstrate that you have acquired the skills shown in the learning outcomes for the module. Specifically, you are required to: Select two companies from the below provided list. Provide an introduction, which should include a statement of the purpose of the report, a brief background history of the selected two companies and their recent developments. Write a general financial review on the two selected companies around the general figures (before you start calculating any ratios). Conduct ratio analysis on the annual reports for the last 4 years from 2017 to 2020, and use appropriate literature to critically evaluate the financial performance and financial position of the selected two companies. Together with investment ratios, provide justifications on whether the shares of the selected companies are worthy of investment. List of companies Tesco PlcSainsbury (J) PlcMorrison (WM) Supermarkets PlcGreggs Plc General notes: Select your group members (four/five students in each group). Groups must be confirmed to the Module Coordinator by the end of Friday 15th October 2021, otherwise groups will be allocated and no changes will be allowed.Use at least ten different (i.e., 2-profitability, 2-liquidity, 2-efficiency, 2- gearing and 2-investment) ratios for each company to conduct the analysis.The calculated ratios should be based on the formulas provided in the Appendix A.Provide the minutes of your meetings in the appendix, detailing who was present, the main topics discussed, and the allocation of work agreed. You can use Microsoft team to coordinate tasks and edit files, as well as brainstorm, have conversations, and meet up online (see this video).The deadline for this project is Friday 10th December 2021 at 3pm.The maximum word limit for the group report (excluding reference list and appendices, but including in-text references) is 2500 words. The word count must be stated in the assignment cover sheet (See Appendix B). Further Advice Avoid mere description of the content of material referred to – critical evaluation is required where specified.Read widely from updated journal articles and you can also use textbooks.Pay close attention to the Assessment Criteria at the end of this document – this lists the specific criteria to the requirements of this assignment. These specific criteria will be used to provide feedback on your marked assignment. The report should be in extended essay format (i.e. use headings/sub- headings).Use the APA 7th referencing guide throughout the report– badly referenced material will lose you marks. APA Referencing Guide can be found at: https://libguides.swansea.ac.uk/APA7Referencing. Do not exceed the word limit (2,500 words). Marker will stop marking once the word count limit has been reached, likely leading to a reduced overall mark as key arguments or conclusions will not be included in the marked work.Remember to submit your work via Canvas Turnitin for this module by the deadline of Friday 10th December 2021 at 3pm. You will need to upload one file per group which will be your Group Report plus your group minutes. All work will be marked on-line. There is no need to submit hard copies. Word Limit: 2,500 words (note that this is an absolute upper limit and penalties will be imposed if exceeded as detailed in the above advice) Submission Date: 10th December 2021 Submission Time: 3pm, UK time Submission Method: Electronically via Turnitin Specific Criteria 0-39 Bad Fail 40-49 Fail 50-59 Pass 60-69 Merit Pass 70-79 Distinction 80-100 Distinction Appropriate Introduction (10%) The introduction should include a statement of the purpose of the report, a brief background history of the selected two companies and their recent developments. Inadequate outline of report purpose and the background history of the selected companies is presented in a very disorganised and difficult to comprehend manner Basic outline of report purpose and provides a disorganised and somewhat hard to understand background history of the selected companies. Acceptable outline of report purpose and the provides a somewhat organised and understandable background history of the selected companies. Good outline pf report purpose and provides a very good and easy-to understand background history of the selected companies. Excellent outline of report purpose and provides excellent and easy-to understand background history of the selected companies. Outstanding outline of report purpose and provides an outstanding and easy-to understand background history of the selected companies. Ratio calculation (20%) Writing a general financial review on the two selected companies and ratio calculation. Indagate financial review of the selected companies and there are 9 or more calculation mistakes in terms of misapplication of formula or using the wrong data. Basic financial review of the selected companies and there are 7-8 calculation mistakes in terms of misapplication of formula or using the wrong data. Good financial review of the selected companies, but there are 5-6 calculation mistakes in terms of misapplication of formula or using the wrong data. Very good financial review of the selected companies, but there are 3-4 calculation mistakes in terms of misapplication of formula or using the wrong data. Excellent financial review of the selected companies, but there are 1-2 calculation mistakes in terms of misapplication of formula or using the wrong data. Outstanding financial review of the selected companies and all the calculations performed are correct with reference to the formulas and accounting report data. Interpretation of ratios (40%) Critical evaluation of financial performance and financial position using appropriate supporting literature. Inadequate understanding of ratios and almost all of the obtained ratios are interpreted incorrectly with no link to literature. Basic understanding of ratios and the majority of the obtained ratios are interpreted incorrectly with little link to literature. Acceptable understanding of ratios and at least half of the obtained ratios are interpreted correctly with links to previous studies without being critical in your discussion. Very good understanding of ratios and most of the obtained ratios are interpreted correctly. General interesting discussion points have been provided yet clearer discussion and providing proper supporting evidence would have improved the work. Excellent understanding of ratios with almost all ratios are interpreted correctly. Good critical discussion using proper arguments and providing proper supporting evidence to the arguments. Outstanding understanding of ratios with all ratios are interpreted correctly. Advanced discussion using proper arguments and providing proper supporting evidence to the arguments. Investment recommendation (15%) Providing justifications on whether the shares of the selected companies are worthy of investment. Very poor justifications have been provided about investment recommendations. Poor justifications have been provided about investment recommendations. Acceptable justifications have been provided about investment recommendations. Very good justifications have been provided about investment recommendations. Excellent justifications have been provided about investment recommendations. Outstanding justifications have been provided about investment recommendations. Conclusion (10%) Very poor summary Poor summary. Acceptable summary. Good summary of the report with critical awareness of limitations. Excellent summary of the report with critical awareness of limitations. Outstanding summary of the report with critical awareness of limitations. Report format (5%) The presentation of the work; referencing and citation and grammatical and structural issues. The presentation of the work is not appropriate for the intended audience of investors. The report presentation of the material is less than satisfactory lacking internal structure and clear overall headings/objectives. The explanation of any data used will be lacking. Any referencing is minimal and lacking in detail. There is clear literate and effective presentation of the material in report format with good overall headings/objectives and clear internal structure. As before with data clearly expressed and explained but some lack of clear focus on intended audience of investors remains. There is clear and appropriate referencing with some errors. All sources have been clearly identified. Excellent report presentation. There is clear, literate and effective presentation of the material. Data is clearly expressed and explained, focused on intended audience of investors. There is clear and appropriate referencing with no errors. All sources have been clearly identified. Outstanding report presentation. There is clear, literate and effective presentation of the material. Data is clearly expressed and explained, focused on intended audience of investors. There is clear and appropriate referencing with no errors. All sources have been clearly identified.
Appendix A – Ratios Analysis
Students must use at least ten different (i.e., 2-profitability, 2-liquidity, 2- efficiency, 2-gearing and 2-investment) ratios for each company to conduct the analysis. The calculated ratios should be based on the below formulas:
Profitability Ratios
ROCE Operating profit x 100 Capital Employed [Equity + Non-current liabilities]
GPM Gross profit x 100 Sales
OPM Operating profit x 100 Sales
Use of assets Sales Capital Employed [Equity + Non-current liabilities]
Liquidity Ratios
Current ratio Current assets Current liabilities
Quick ratio Current assets – inventory Current liabilities
Efficiency Ratios
Trade receivables Trade receivables x 365 days
Sales
Trade payables Trade payables x 365 days Cost of sales
Inventory days Inventories x 365 days
Cost of sales
Gearing Ratios
Gearing Non-current liabilities + preference share capital x 100 Ordinary share capital + share premium + retained profit + Non-current liabilities +
preference share capital
Interest cover Operating profit
Interest expense (financing costs)
| Investment Ratios | |
| DPS | Dividend paid |
| Number of ordinary shares | |
| Dividend cover | Profit after tax |
| Dividend paid | |
| EPS | Profits available to ordinary shareholder ( i.e. profit after tax less pref dividend) |
| Number of ordinary shares |
Appendix B – Group Submission Cover Sheet
Students must use at least ten different (i.e., 2-profitability, 2-liquidity, 2- efficiency, 2-gearing and 2-investment) ratios for each company to conduct the analysis. The calculated ratios should be based on the below formulas:
Profitability Ratios
ROCE Operating profit x 100 Capital Employed [Equity + Non-current liabilities]
GPM Gross profit x 100 Sales
OPM Operating profit x 100 Sales
Use of assets Sales Capital Employed [Equity + Non-current liabilities]
Liquidity Ratios
Current ratio Current assets Current liabilities
Quick ratio Current assets – inventory Current liabilities
Efficiency Ratios
Trade receivables Trade receivables x 365 days
Sales
Trade payables Trade payables x 365 days Cost of sales
Inventory days Inventories x 365 days
Cost of sales
Gearing Ratios
Gearing Non-current liabilities + preference share capital x 100 Ordinary share capital + share premium + retained profit + Non-current liabilities +
preference share capital
Interest cover Operating profit
Interest expense (financing costs)
| Investment Ratios | |
| DPS | Dividend paid |
| Number of ordinary shares | |
| Dividend cover | Profit after tax |
| Dividend paid | |
| EPS | Profits available to ordinary shareholder ( i.e. profit after tax less pref dividend) |
| Number of ordinary shares |
Appendix B – Group Submission Cover Sheet
