COMPANY : CIMIC GROUP LTD
ASSIGNMENT DETAILS
You are required to submit a written report (along with the detailed excel calculations) by analysing the financial health and accounting quality of your assigned company.
Your assignment must include following sections.
a) Introduction
b) Business strategy Analysis: Business strategy analysis involves analysing a firm’s industry (Porter’s five factor model) and its strategies (cost leadership vs. differentiation) to determine a firm’s sustainable competitive advantage.
c) Financial Analysis § Profitability analysis
§ Income flow and cash flow analysis
§ Liquidity risk analysis
§ Solvency risk analysis In this section, you are required to analyse financial health of your assigned company.
In doing so, you are recommended to use two tools in financial analysis such as ratio analysis and cash flow analysis.
Refer to lectures from weeks 3‐5 to identify relevant ratios to analyse profitability, cash flow, liquidity risk and solvency risk.
In solvency risk analysis, you are also required to include Altman Z‐score model of detecting financial distress.
For each indicator, you are required to perform a time‐series analysis for the period 2014‐2019. Please note that, this assignment is to analyse financial health of a company not to prepare financial statements.
c) Accounting analysis: In this section, you are required to evaluate accounting quality of your assigned company by assessing accounting policies and estimates.
You are also required to calculate the likelihood of accounting manipulation using the Beneish (1999) M‐score model of detecting earnings manipulation.
d) Conclusion
e) References SUBMISSION DETAILS
limit: 2000 (excluding excel calculations tables, references),
+/‐5% tolerance
Submission format: Two documents. Written assignment report and Excel calculations file. PDF copy of written assignment report needs to be submitted via Turnitin. Excel calculations must also be submitted via Turnitin.
Please clearly mention your name and student ID on the cover page.
Referencing: Standard LTU guidelines apply to referencing, including in‐text referencing and bibliography (APA 6 recommended)
Marks distribution: Introduction: 1 marks
Business strategy analysis: 4 marks
Financial analysis: 17 marks (4 marks for each sub‐section of financial analysis plus 1 marks for Altman Z‐score modelling)
Accounting analysis: 6 marks(3 marks for qualitative accounting analysis and 3 marks for quantitative accounting analysis)
Conclusion: 1 marks
References: 1 marks