finance assignment, assignment and guidance is on the attachment
MBA Engineering Management MBA Financial Analysis For Managers’ Assignment Report page limit – maximum 10 double sided pages plus appendix for workings / supplementary data This assignment will be based on real data which can be taken primarily from the annual reports of the Airbus group for the latest four years from 2018-2021 Full copies of the Annual Financial Reports are available on Moodle / Teams and through the websites of the Airbus group. You are required to analyse the financial performance of the Airbus group over the last 4 years from 2018 – 2021. This is an individual assignment. Scenario After a tumultuous couple of years for the aviation industry and amidst a complex and changing geopolitical and economic environment, the Airbus group have managed to remain on their strategic flight plan. The risk profile however, remains high for the Airbus group and for the aviation sector in general. In the first quarter of 2022 the Airbus group delivered 14 commercial aircraft and continue to increase their production rates of the A320 family to meet growing customer demand. You are required to analyse the financial performance of the group over the last 4 years and examine how the internal and external environment have impacted their results. Required A professionally produced report which should include a detailed analysis of the following areas:- (a) Profitability (b) Efficiency (c) Liquidity (d) Gearing (e) Horizontal common size analysis (using 2018 as a base) (f) Vertical common size analysis (using total assets as a base) (g) A balanced score card analysis incorporating non-financial measures of performance. (h) Conclusions and Recommendations You should state any assumptions made and you are not required to comment on the investment performance of the company. Your findings should be submitted in a formal report with well founded conclusions and recommendations. You should state any assumptions made Assessment Criteria /marking scheme is attached for your reference. Copies of the annual financial reports for Airbus for the 4 years 2018-2021 inclusive have been copied for your reference on Moodle / Teams. Please make sure you are aware of the rules regarding plagiarism. Whilst we encourage you to discuss ideas and issues with your colleagues, the final piece of work MUST BE ENTIRELY YOUR OWN. MBA FINANCIAL ANALYSIS AIRBUS GROUP FINANCIAL ANALYSIS MARKING GRID FOR STUDENTS CRITERIA Total marks available % Marks awarded % COMMENTS Quality of presentation: correct referencing 7.5 Professional presentation expected Font size 12 Times New Roman Standard margin sizes, headers & footers In text citations and Harvard style Referencing where appropriate All tables, graphs, charts and calculations to be placed in the appendix and cross referred to in the main text. Concise report style language – not essay Structure of Report Report format 7.5 Should include:- · Title page, · Table of contents · Executive Summary (approx. 1/8th in size of the main report) · Introduction which should, include a brief background and an indication of what is to come in the report · The main body of the report should include sections on:- profitability efficiency, liquidity, gearing, horizontal analysis and vertical analysis · Conclusion · Recommendations · References · Appendix (which should include all graphs, charts, calculations etc.) Profitability – ratios could include Gross Profit /Operational profit Net Profit Return on Shareholder funds Return on Capital Employed Others? 10 Range of profitability ratios (4 minimum) Ratios should be correctly worked out and any assumptions stated regarding figures used Trends should be analysed correctly and an attempt made to explain the trends. Secondary supporting data could be used to support reasons put forward in your analysis. Once all of the individual profitability ratios have been analysed you should provide a summary at the end of the profitability section giving the overall profitability position. Efficiency Sales Revenue : Capital Employed Sales revenue per employee Debtor turnover Creditor turnover Stock turnover Could look at other more aviation appropriate measures of efficiency 15 Careful selection of efficiency ratios required. Only use those that are application to the organization in question. Again ratios should be analysed correctly, explanation given as to what you are measuring with the ratio, an attempt should be made to explain the trends and give possible reasons. Linking should be attempted with other ratios, information within the annual report, horizontal and vertical analysis and other secondary supporting data. Liquidity Current ratio Acid test Working Capital cycle 7 Current ratio should be analysed. Cash Flow Statement should be used for further detailed analysis of the cash position. Again ratios should be analysed correctly, explanation given as to what you are measuring with the ratio, an attempt should be made to explain the trends and give possible reasons. Linking should be attempted with other ratios, information within the annual report, horizontal and vertical analysis and other secondary supporting data. Gearing Loans: Capital Employed Interest Cover 5 2 main gearing ratios should be used Again ratios should be analysed correctly, explanation given as to what you are measuring with the ratio, an attempt should be made to explain the trends and give possible reasons. Linking should be attempted with other ratios, information within the annual report, horizontal and vertical analysis and other secondary supporting data. Horizontal Analysis Analysis of individual elements over 3 -4 years 4 Balance Sheet & Income Statement Look at the changes in the key areas of both statements only e.g. Income Statement – investigate Sales / Operational Profit / Net Profit / Appropriations. If there are significant changes then investigate further, e.g. if there is a significant change in net profit, examine all expenses to see why this has occurred. Balance Sheet - investigate the 5 main parts of the statement – total Noncurrent assets, total current assets, total current liabilities, total long term liabilities and total shareholder equity. Again if there is a significant change from one year to another, then investigate in more detail. To summarize, analysis should highlight key changes from 2018, any significant increases or decreases should be investigated further Vertical Analysis Analysis of individual elements over 3 – 4 years 4 Balance Sheet Only. Analysis should highlight percentage to total assets and comment should be made on any significant changes. Again look at the 5 main areas in the Balance sheet Total Noncurrent assets, total current assets, total current liabilities, total long term liabilities and total shareholder equity and compare them to total assets as the base. To summarize, analysis should highlight key changes from 2018, any significant increases or decreases should be investigated further Evaluation of business performance using non-financial measures Balanced Score Card 10 (a) Identify how business success is measured (b) Identify how the company evaluates performance and whether they use the balanced score card. If not suggest what elements they could include in such an analysis. Conclusion Summary of overall position of the Organization over 4 year period and current financial standing 10 Conclusion should be what conclusions that you draw from your analysis – it should provide a holistic view of the financial status of the company The conclusion should be linked closely with you findings. Recommendations Consistency with analysis Should be financially rather than business driven 20 Recommendations should logically flow from your analysis. You need to focus on prioritizing your recommendations. Recommendations should be financially driven and not general recommendations. Recommendations should also focus on improving / strengthening i.e. they don’t just have to come from areas within your analysis that need improvement. TOTAL MARK 100 General Comments Assessor: Catherine Kennedy Signature: Date : 2nd July 2022 BUSINESS DOCUMENT This document is intended for business use and should be distributed to intended recipients only. V03 V03w V04 V02w V02 V01 V01w Pioneering sustainable aerospace – resilience and responsibility Airbus Annual Report 2019 Airbus Defence and Space has developed an extensive portfolio of Earth Observation satellites capable of providing high- resolution imagery and environmental monitoring. For 50 years, Airbus has transformed aerospace through bold alliances, innovative products and technologies. This has only been possible thanks to the strong commitment of generations of passionate, visionary and talented people. This annual report was prepared on the basis of the Company’s 2019 operations, results and performance. Today, as Airbus releases this document, the world, the aerospace and defence industry and the Company are in the midst of the coronavirus pandemic. So in early 2020, the entire world, humanity and globalisation look very different; the Company and its stakeholders are adapting at a fast pace in an even faster changing environment. Despite the pandemic, Airbus continues to report on its 2019 transformation activities which have begun to lay the groundwork for the future. Airbus is focused on serving its customers and society as a whole while remaining resilient. Throughout 2019, it focused its efforts on building a sustainable, purpose-driven culture that puts safety, quality and ethics at its heart while listening to stakeholders and putting them at the centre of all the Company does. The “Next Chapter” initiative was designed to empower the Airbus teams to achieve this. Now, Airbus is focused on its resilience, as a company and as an industry, as well as meeting the needs of wider society in the current context either directly or via the Airbus Foundation. Resilience is a key word for all. The foundations laid in 2019 will support the Company through the crisis and as it comes out on the other side. Overview 02 Next Chapter 04 2019 Highlights 06 Airbus at a glance 07 Airbus 08 Airbus Helicopters 09 Airbus Defence and Space 10 Chairman’s message 11 Board of Directors 12 Chief Executive Officer’s interview 13 Executive Committee 14 Sustainability and Environment 16 50 years of Airbus 18 Chief Financial Officer’s interview 20 Share information Universal Registration Document 07 Risk Factors 23 Information of the Company’s Activities 79 Management’s Discussion and Analysis of Financial Condition and Results of Operations 101 General Description of the Company and its Share Capital 123 Corporate Governance 171 General Information Financial Statements 05 Airbus SE IFRS Consolidated Financial Statements 13 Notes to the IFRS Consolidated Financial Statements 85 Airbus SE IFRS Company Financial Statements 91 Notes to the IFRS Company Financial Statements 111 Other Supplementary Information Including the Independent Auditor’s Report From formation flights involving a wide array of aircraft to a special event at the Paris Airshow, employees around the world marked Airbus’ 50th anniversary in 2019. Where applicable, ‘Airbus’ refers to commercial aircraft and the integrated functions while ‘the Company’ refers