Executive Summary

Company

fin600 tX YYYY

name: Student id:

Executive Summary

*What your report is about

*Summarise XXX Company, who they are and any key characteristics

*Summarise financial performance of selected year

*Summarise ratio analysis

*Would you invest?

in 1 page

ensure to reference

single line space

Contents

Page Number

1 Introduction – Background and Business 2

2 Company Analysis – Current financial performance, Key financial highlights,

Economic outlook

3 Ratio Analysis

3.1 Profitability ratios

3.2 Efficiency ratios

3.3 Liquidity ratios

3.4 Gearing ratios

4 Recommendations and overall assessment

5 References/Bibliography

Appendices – Excel Spreadsheet

1 Introduction

1.1 Background and Business

Discussion

*Describe XXX Company

*Different business segments

3 paragraphs

2 Company Analysis

2.1 Current Financial performance, Key financial highlights, Economic outlook

*Summary of financial performance for the reporting year

(1 paragraph)

ENSURE TO COVER THE BELOW, USE EACH LINE AS A HEADING

Financial highlights/events of YYYY

(use dot points)

Economic Outlook

(use dot points)

3 Ratio Analysis

3.1 Profitability and Market ratios

(see appendix for calculations)

YYYY

YYYY

Industry average

Return on equity

%

%

%

Return on assets

%

%

%

Gross profit margin

%

%

%

Net profit margin

%

%

%

Net Interest Income (if applicable)

%

%

%

Expense ratio or Cost to income ratio

%

%

%

Cash flow to sales

%

%

%

Earnings per share

$ per share

$ per share

$

Dividends per share

$ per share

$ per share

$

Dividend payout ratio

%

%

%

Price earnings ratio

times

times

times

Suggested Discussion

*What happened to the Profitability Ratios overall?

*What happened at XXX Company to cause the ratio result change

*Are there any ratios that require specific discussion?

*If the ratios show stability, why is this the case?

*If ratios are favourable or unfavourable why is this the case?

*What could this mean for XXX Company

*Ensure the table matches appendix exactly, this will be checked in your final submission

3.3 Efficiency ratios

(see appendix for calculations)

YYYY

YYYY

Industry average

Asset turnover

times

times

times

Days inventory

days

days

days

Days debtors

days

days

days

Times inventory turnover

times

times

Times

Times receivables turnover

times

times

Times

Suggested Discussion

*What happened to the Efficiency Ratios overall?

*What happened at XXX Company to cause the ratio result change

*Are there any ratios that require specific discussion?

*If the ratios show stability, why is this the case?

*If ratios are favourable or unfavourable why is this the case?

*What could this mean for XXX Company

*Ensure the table matches appendix exactly, this will be checked in your final submission

3.3 Liquidity ratios

(see appendix for calculations)

YYYY

YYYY

Industry average

Current ratio

xx:1

xx:1

xx:1

Quick ratio

xx:1

xx:1

xx:1

Cashflow ratio

times

times

times

Suggested Discussion

*What happened to the Liquidity Ratios overall?

*What happened at XXX Company to cause the ratio result change

*Are there any ratios that require specific discussion?

*If the ratios show stability, why is this the case?

*If ratios are favourable or unfavourable why is this the case?

*What could this mean for XXX Company

*Ensure the table matches appendix exactly, this will be checked in your final submission

3.4 Gearing ratios

(see appendix for calculations)

YYYY

YYYY

Industry average

Debt to equity ratio

%

%

%

Debt ratio

%

%

%

Equity ratio

%

%

%

Debt coverage

%

%

%

Interest cover ratio

times

times

times

Suggested Discussion

*What happened to the Gearing Ratios overall?

*What happened at XXX Company to cause the ratio result change

*Are there any ratios that require specific discussion?

*If the ratios show stability, why is this the case?

*If ratios are favourable or unfavourable why is this the case?

*What could this mean for XXX Company

*Ensure the table matches appendix exactly, this will be checked in your final submission

4 Recommendations and overall assessment

Discussion

ENSURE TO COVER THE BELOW IN YOUR DISCUSSION, USE EACH LINE AS A HEADING

Discuss all the below in relation to ratios and information from reports.

Has the reporting year been better than the prior reporting year for the company?

Relate to the ratios

Do the ratios show improvement or decline or stability, which ratios show this?

2-3 paragraphs

Will the company succeed in the future?

Relate to the ratios

Which ratios show if XXX Company will or will not succeed in the future

2-3 paragraphs

The likelihood of a merger or acquisition of the company?

Relate to the ratios

Will XXX Company merge with another company or be acquired by another company?

What do the ratios convey about this?

2-3 paragraphs

Suggest what should the company be doing help it succeed

Relate to the ratios

Which ratios require improvement? What should XXX Company be doing to improve these?

2-3 paragraphs

External impacts that need to be taken into consideration

The impact of government on the business

Discuss any political pressures and external/other factors that impact on XXX Company

2-3 paragraphs

Would you invest in this company?

5 References/Bibliography

Appendices – see Excel Spreadsheet