Accounting 3015 Case Study: Various Financial And Non-financial Ratios (Coursework Sample)

ACC 3015 CASE STUDY Contents  TOC \o "1-3" \h \z \u  HYPERLINK \l "_Toc520924468" 1.0 Introduction  PAGEREF _Toc520924468 \h 4  HYPERLINK \l "_Toc520924469" 2.0 Financial Ratio Analysis  PAGEREF _Toc520924469 \h 4  HYPERLINK \l "_Toc520924470" 2.1 Liquidity Ratios  PAGEREF _Toc520924470 \h 4  HYPERLINK \l "_Toc520924471" 2.1.1 Current ratio  PAGEREF _Toc520924471 \h 4  HYPERLINK \l "_Toc520924472" 2.1.2 Quick ratio  PAGEREF _Toc520924472 \h 5  HYPERLINK \l "_Toc520924473" 2.2 Efficiency ratios  PAGEREF _Toc520924473 \h 6  HYPERLINK \l "_Toc520924474" 2.2.1 Inventory turnover  PAGEREF _Toc520924474 \h 6  HYPERLINK \l "_Toc520924475" 2.2.2 Receivable periods  PAGEREF _Toc520924475 \h 7  HYPERLINK \l "_Toc520924476" 2.3 Profitability ratios  PAGEREF _Toc520924476 \h 8  HYPERLINK \l "_Toc520924477" 2.3.1 Return on capital employed (ROCE)  PAGEREF _Toc520924477 \h 8  HYPERLINK \l "_Toc520924478" 2.3.2 Gross profit margin  PAGEREF _Toc520924478 \h 9  HYPERLINK \l "_Toc520924479" 2.4 Investment Ratios  PAGEREF _Toc520924479 \h 10  HYPERLINK \l "_Toc520924480" 2.4.1 Earnings per share  PAGEREF _Toc520924480 \h 10  HYPERLINK \l "_Toc520924481" 2.4.2 Dividend yield  PAGEREF _Toc520924481 \h 11  HYPERLINK \l "_Toc520924482" 2.5 Financial Gearing ratio  PAGEREF _Toc520924482 \h 12  HYPERLINK \l "_Toc520924483" 2.5.1 Interest coverage  PAGEREF _Toc520924483 \h 12  HYPERLINK \l "_Toc520924484" 2.5.2 Gearing ratio  PAGEREF _Toc520924484 \h 13  HYPERLINK \l "_Toc520924485" 3.0 Non-financial ratios  PAGEREF _Toc520924485 \h 14  HYPERLINK \l "_Toc520924486" 3.1 Women employee in management  PAGEREF _Toc520924486 \h 14  HYPERLINK \l "_Toc520924487" 3.2 Carbon footprint (000 tonnes)  PAGEREF _Toc520924487 \h 15  HYPERLINK \l "_Toc520924488" 4.0 Overall ranking of financial and non-financial ratios and discussion  PAGEREF _Toc520924488 \h 16  HYPERLINK \l "_Toc520924489" 4.1 Investment opportunities for best performing company  PAGEREF _Toc520924489 \h 17  HYPERLINK \l "_Toc520924490" 4.2 Poor performing company and potential recommendations  PAGEREF _Toc520924490 \h 17  HYPERLINK \l "_Toc520924491" 5.0 Investment decision-making  PAGEREF _Toc520924491 \h 18  HYPERLINK \l "_Toc520924492" 5.1 Investment decision making stages  PAGEREF _Toc520924492 \h 18  HYPERLINK \l "_Toc520924493" 5.2 Investment appraisal  PAGEREF _Toc520924493 \h 18  HYPERLINK \l "_Toc520924494" 5.2.1 Payback period (PP)  PAGEREF _Toc520924494 \h 18  HYPERLINK \l "_Toc520924495" 5.2.2 Accounting rate of return (ARR)  PAGEREF _Toc520924495 \h 18  HYPERLINK \l "_Toc520924496" 5.2.3 Net present value  PAGEREF _Toc520924496 \h 19  HYPERLINK \l "_Toc520924497" 5.2.4 Internal rate of return  PAGEREF _Toc520924497 \h 19  HYPERLINK \l "_Toc520924498" 5.2.5 Discounted cash flow  PAGEREF _Toc520924498 \h 19  HYPERLINK \l "_Toc520924499" 6.0 Conclusion  PAGEREF _Toc520924499 \h 19  HYPERLINK \l "_Toc520924500" 7.0 Reference list  PAGEREF _Toc520924500 \h 21   Introduction When making investment decisions, an investor might be guided by both financial and non-financial ratios. According t...