Details of Assessment Assessment 1 Assessment Type: Written Report – individual assessment Task Details: Students are required to select one ASX corporation from the list,...

ASX Company report
COLLINS FOODS LIMITED
1st Trimester 2020
Individual Report
1) EXECUTIVE SUMMARY
This report intends to create a collective knowledge on the objectives and disclosures of COLLINS FOODS LIMITED. A detailed study of the voluntary disclosures made by the company on its annual reports would enable to draw a conclusion of factors that influence the share prices of the company. A comparison of these voluntary disclosures with the external reports and an analysis using the qualitative characteristics of financial reporting information such as relevance, verifiability and understandability helps this research to draw a realistic conclusion on the company. The report ends by drawing a conclusion, citing recommendations and references of the company.
Table of Contents:
1. Executive Summary…………………………………………………………….2
2. Introduction……………………………………………………………………..4
3. Share price……………………………………………………………………...5
4. Comparison of Share prices…………………………………………………...6
3. Voluntary Disclosure of COLLINS FOODS LTD……………………………7
1. Growth……………………………………………………………7
2. Corporate Social Responsibility………………………………...8
4. Comparing Voluntary Disclosures Made by the Company
With The Information Gained from External Source: ….………...…………..9
1………………………………………………………….……….9
· Relevance……………………………….………....10
· Verifiability.………………………………………10
· Faithfull Representation….………………..….…10
2…………………………….…..……………………………..…..11
· Relevance………..………………….……………… . .11
· Verifiability……………………….……….……….....11
· Faithful Representation…….…………….…….……11
5. Conclusion and Recommendation………………………..….….………………12
6. References……………………………………….………………..………………13
2) INTRODUCTION
Collins Foods limited is an Australian company which operates in restaurant sector. It is a publically listed company and having some well know restaurant chains such as KFC, Taco Bell and sizzler in Australia and in many parts of Asia. It was founded in 13th August 1968 in California by James A Collins having headquarters in Hamilton Queensland, Australia. They operate 217 restaurants in Australia and 65 in other parts of Asia. Now the company is in its aggressive expansion state by focusing on KFC restaurant chains as they found that sizzler is no longer a cash cow for their growth. The company became a market leader in the industry that is capable of changing the market norms and captures the entire cuisine market of the country. They became unique for their recipes and their customer services. Every year they make necessary changes to their menus to hold their existing customers and attract prospective ones.
3) SHARE PRICE
The Collins Foods Ltd. (ASX: CKF) is a solid performer in the Australian stock exchange.
It has outstanding shares of 116,581,000 till date in the ASX market. Collins foods have a market capitalization of $0.00 and generate $981.73 million in revenue in each year. A study of the share prices of Collins is being conducted and here are the share prices of last 2 years.
The share prices for 2018
    Open
    5.21
    High
    8.92
    Low
    5.17
    Close
    8.68
    Volume
    77.03M
    % Change
    649.37%
Share prices on 2019    
    Open
    8.68
    High
    10.8
    Low
    3.5
    Close
    9.52
    Volume
    155.87M
    % Change
    721.89%
The share prices depicted are on an average basis.
4) COMPARISON OF SHARE PRICES
A study of the above table would give a conclusive result that Collins share prices are having a good growth rate in the stock market. In 2019 the shares were of a high demand as a result of increase in their net earnings and a high payout ratio. In 2018 the highest rate was 8.92 where as in 2019 it was 10.8 that is a growth percentage of about 21.07 per cent in a year. As per reports of stock brokers, stock analysts it is not a viable investment for a long term cash flow, but for a short term investors Collins is a good investment option.
Share prices of Collins are overvalued when compared to...