BUSM1010: Financing Enterprises Assessment

Group Assignment Guidelines

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Follow the steps outlined below to obtain the data needed for the group assignment

1. On the WSU Library website home page, from the “Collections” drop down tab, click on e-Resources and under the Databases by Title section, click on the letter “D”, then pick the DatAnalysis Premium database. Once in the database, go to the search engine bar on the top right-hand side of the page, and enter each the following company’s name or ASX code:

- Aristocrat Leisure Limited (ASX code: ALL)

- Michael Hill International Limited (ASX code: MHJ)

For each company, the displayed page summarises general information about the company including the sector and industry in which it operates, total market capitalisation of the firm, latest closing share price, etc.

1. Each firm operates in a different Industry Group.

• Aristocrat Leisure Limited operates in the Consumer Services industry group.
• Michael Hill International Limited operates in the Consumer Discretionary Distribution and Retail industry group.

1. On the left-hand side, click on “Financial Data”. The displayed page shows annual and interim information for your assigned companies (in the view bar, make sure you choose annual and not interim data). On the page’s control bar at the top, you will see the first three icons, which displays the company’s summarised annual financial statements (income statement [profit & loss statement], balance sheet, etc.).

1. The figures shown on the Financial Data page are rounded figures and are not to be usedin the calculation of ratios. To access the raw figures for your ratio calculations, select the relevant time period (i.e., 2022 to 2023) from the ‘year range’ drop down bars, and click on ‘go’. Once the figures appear, click on the ‘download spreadsheet’ button. This will download an Excel file that contains all the relevant financial statements i.e., Profit & Loss Statement, Balance Sheet, etc. for both 2022 and 2023.

1. In the downloaded Excel file, you will see a sheet titled “Revenue/Expense” in which you can locate the Cost of goods sold (COGS) for each company for the different years. This is the figure you will employ as the Cost of Goods Sold, if any ratio calculations/ratio analysis require it. Remember to disregard the minus sign in front of the COGS figure and remove the minus sign prior to using the COGS figure in your ratio calculations. The minus sign denotes that COGS is an expense item.

1. For more detailed information about how to obtain the data required for your group assignment, please watch the ‘How to Obtain Data for the Group Assignment’ video. The video is located in the Assessment Zone under the Assessment 2: Numerical Problem Solving link. Ideally, all group members should watch this video prior to commencing the assignment.

What is Required

You work as part of a team of investment analysts at Genesis Financial Group, reporting to the Chief Investment Officer (CIO), Alphia Cornode. The CIO has identified two companies as potential investments. Your team has been tasked by the CIO to analyse the financial position and performance of the above assigned companies for the two stated financial years (2022 and 2023), and to provide a recommendation as to which may be the most profitable company for Genesis Financial Group to invest into, if any.

Your task involves answering the following five (5) questions in your own words (i.e., do not simply “cut and paste” information from the Annual Report or any other source). You must apply critical thinking concepts when explaining and justifying your choices.

NB: Ensure that you refer to the marking criteria and important notes and information contained in this document prior to commencing the assignment.

 Based on the information available on THE DatAnalysis Premium DATABASE for both ASSIGNED COMPANIES, ANSWER all of the following questions (1 to 5 inclusive).

 Question 1:

Calculate the Cash Conversion Cycle (CCC) for each of the two companies in 2022 and 2023. Using your answer, analyse the efficiency of each of the two companies in managing their working capital in 2023 as compared to 2022. Note: ensure that you analysein this question, not just describe the CCC values. (3 marks)

Question 2:

Analyse the ability of management to manage their fixed assets and total assets for each of the two companies in 2023 as compared to 2022. Use twoAsset Management efficiency ratios to support your answer and explain any change in each companies’ ability to use their assets to generate sales. Note: ensure that you analysein this question, not just describe the ratio values. (2 marks)

Question 3:

Analyse the sources of finance for each of the two companies in 2023 as compared to 2022. Use two capital structure ratios to support your answer and provide an explanation regarding the changes in the composition of the sources of finance for each enterprise. Note: ensure that you analyse in this question, not just describe the ratio values. (2 marks)

Question 4:

Using the DuPont method, analyse the profitability of each of the two companies in 2023 as compared to 2022 from a shareholder’s point of view. Based on your calculations, explain the main reason(s) for the change in the profitability for each company over the two years. Note: ensure that you analyse in this question, not just describe the ratio values. (3 marks)

Question 5:

Given your answers and analysis in Questions 1 to 4, what is your final recommendation to the Chief Investment Officer at Genesis Financial Group, with regards to the potential of investing in any of the two firms? Discuss the basis for your recommendation. Ensure you base your recommendation only on the change in the ratios for the two stated financial years (i.e., 2022 and 2023). (4 marks)

NOTES and important information

1. All ratios must be selected from those identified in your prescribed textbook (Bakry 2020). The use of ratios other than those identified in the prescribed textbook and discussed in class will not gain any marks. Include all supporting calculations for any values shown in Questions 1 to 5 in the Appendix. The Appendix is NOT included in the word count.

Note: Marks will NOT be awarded if no supporting ratio calculations are shown in the Appendix.

1. In questions 1-4, an analysis is required and not just a description of the ratio. That means you need to explain how the ratio changed over time and what are the main reason(s) for that change, and how that will impact the company’s financial position. The aim of the assignment is to examine and analyse the change in the firm’s financial position and performance based only on your calculated ratios. Each company must be compared to itself over the period under examination. DO NOT compare the companies to each other nor should you compare the companies to the industry in which they operate.

1. The assignment does not require the obtainment of industry/peer group averages for any of the calculated ratios. Procurement and incorporation of industry averages into your assignment answers will not gain any additional marks. Nor will students gain any marks for providing extraneous information about the industry groups in which the two firms operate.

1. Question 5 requires you to synthesise the analyses from questions 1-4 to formulate a well-justified argument/conclusion, which is both logical and critical. Question 5 has its own criteria in the marking guide, which you need to refer to.

1. In calculating the ratios, assume that the “Sales” are the “Operating Revenues” (available in the Profit & Loss statement).

1. In calculating the ratios, ignore Abnormals. You should only use figures before abnormals such as, ‘Net profit after tax before abnormals’.

1. Ratios calculated by the Morningstar analyst and available within the database are not to be used as guidance for calculating your ratios. The analyst has calculated some of the ratios using formulas different to the ratios covered in BUSM1010 Financing Enterprises.

1. Reference List

Include any references you have used and cited in your assignment. Make sure all answers are fully referenced using the Harvard referencing system, including in-text citations and a reference list at the end of your assignment. Onlyscholarly references are to be utilised. For guidelines on using the WSU Harvard referencing system see: 

Note: The Reference List is NOT included in the word count.

1. Group Assignment Cover Sheet

Group assignments are to be submitted with a WSU group assignment cover sheet with ALL team members’ names and student IDs clearly stated. You are NOT allowed to exclude team member names from the Group Assignment Cover Sheet. Assignments submitted without a cover sheet will NOT be marked.

Submission Information Assignment Submission

The only acceptable file types are Word files .doc, .docx. PDF files will not be accepted. Your submission should not be in any other format and should not include any pictures – all work, including the working out/calculations of the ratios should be typed in Word.Calculations that are handwritten will not receive any marks.

Furthermore, as per the BUSM1010 Subject Outline: the use of generative AI software is not permitted for the Numerical Problem Solving group assignment task for Financing Enterprises. Consequently, this will be taken into consideration in the determination of your mark for the Numerical Problem Solving group assignment. Therefore, if work has been found to be constructed using generative AI (this can be determined via Turnitin’s AI Writing Detector), only work that has been originally constructed by the team will be accepted and awarded marks.Students are thus duly reminded to originally construct all work themselves for this group assignment task.

Students should not be using any type of AI software tools (for e.g., Grammarly AI, Google Docs Gemini “Help me write”, Microsoft Copilot, QuillBot, Apple Intelligence, Apple Autopilot, Sapling, Zapier, Trinka, etc.) to check the assignment’s grammar, spelling, writing, and sentence structure.

By submitting your work using the Turnitin link you and your team members collectively are certifying that:

• You hold a copy of this submission if the original is lost or damaged.
• No part of this submission has been copied from any other student’s work or from any other third party (including generative AI) except where due acknowledgment is made in the submission.
• No part of this submission has been submitted by you in another (previous or current) assessment, except where appropriately referenced, and with prior permission from the teacher/tutor/supervisor/Subject Coordinator for this subject.
• No part of this submission has been written/produced for you by any other person or technology except where collaboration has been authorised by the teacher/tutor/supervisor/Subject Coordinator either in the assessment resources section of the Subject Outline for this assessment task, in the instructions for this assessment task or through Canvas.
• You are aware that this submission will be reproduced and submitted to detection software programs for the purpose of investigating possible breaches of the Student Misconduct Rule, for example plagiarism, contract cheating, or unauthorised use of generative AI. Turnitin or other tools of investigation may retain a copy of the submission for the purposes of future investigation.
• You will not make this submission available to any other person unless required by the University.

Assessment Requirements

This group assignment requires students to act as investment analysts at Genesis Financial Group and evaluate the financial position and performance of two ASX-listed companies Aristocrat Leisure Limited and Michael Hill International Limited over the financial years 2022 and 2023 using financial statement data obtained from the DatAnalysis Premium database.

Students must:

• Download raw financial figures (not rounded data) for both companies

• Calculate prescribed financial ratios (as per Bakry, 2020)

• Analyse changes in performance over time within each firm only

• Support all ratio values with full calculations in the Appendix

• Synthesise findings to provide an investment recommendation

The assignment consists of five analytical questions:

1. Cash Conversion Cycle (CCC) analyse changes in working capital efficiency

2. Asset Management Efficiency evaluate fixed and total asset usage

3. Capital Structure Analysis assess sources of financing

4. Profitability (DuPont Method) analyse shareholder-level profitability

5. Final Investment Recommendation synthesise analysis across all ratios

Important assessment rules include:

• Only ratios taught in the prescribed textbook may be used

• No cross-company or industry comparison is allowed

• Only changes between 2022 and 2023 within each company must be analysed

• Calculations must be typed (no images or handwritten workings)

• Harvard referencing must be applied

• Generative AI tools must not be used to produce assignment content

Marks are awarded for:

• Correct ratio selection and calculations (Appendix)

• Depth of financial analysis (not description)

• Logical interpretation of year-to-year changes

• Coherent final recommendation

• Academic writing and presentation standards

Download the Sample But Use It Responsibly

Looking for clarity on how to structure and present your assignment? You can download the available sample solution to better understand academic formatting, analysis style, and presentation flow. This file is provided strictly for reference and learning purposes only submitting it as your own work may result in plagiarism penalties or academic misconduct issues. Always use the sample as a study guide, not as a final submission.

If you need a unique answer tailored to your topic, university guidelines, and marking rubric, our professional academic writers can create a fresh, 100% plagiarism-free custom solution exclusively for you. Every order is written from scratch, fully referenced, and aligned with your assessment requirements helping you submit confidently and score better.

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Please remember the downloadable sample is for academic guidance only and should not be copied or submitted directly.

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