1
FIN1FSA Semester 2 2020
La Trobe Business School
FIN1FSA Financial Statement Analysis
Group Assignment Semester 2, 2020
Due time and date: 23:55pm, Friday of Week 10, October 02, 2020
Topic 1 Strategy analysis
An analysis of a firm’s key success factors and risks not only involves its industry analysis but
also the strategic choices it makes in positioning itself in the industry. You are an analyst and
one of your clients request you to prepare a report and make recommendation on the risks and
profit potential of a non-financial firm listed on the ASX (Australian Securities Exchange).
Using financial report of that company communicate your advice to the client based on client’s
requirement.
Topic 2 financial analysis
You are required to analyse and compare financial health of your chosen company for five
years. The examination of financial health should include:
 Common size analysis of key financial statements (income statement and balance
sheet)
 Profitability analysis
 Operating management evaluation
 investment management evaluation
 Financial management evaluation
Topic 3 Prospective Analysis-Forecasting and valuation
Prospective analysis involves forecasting of future consolidated balance sheet and income
statement. You are required to perform a prospective analysis with the 10-year
forecasting of key metrics such as:
 Sales growth
 NOPAT margin
 Net Operating Assets turnover
 Net operating working capital to Sales ratio
 Net Debt to Capital ratio
 After tax cost of debt
 Dividend rate
Valuation is the process of converting a forecast into an estimate of the value of the
organization or some component of the organization. In practice, a wide variety of valuation
approaches are employed. You are required to perform valuation of your company using the
discounted abnormal earnings valuation method and free cash flow to equity capital method.

Topic 4 Credit analysis and distress prediction
You are required to analyse the historical (5-year) creditworthiness of your company using
the Altman Z-score model.
2
FIN1FSA Semester 2 2020
Assignment Submission Details
 Work on the assigned company for your group (available on the LMS).
 Download and use the most recent (six years) annual reports and/or financial reports
from the company’s website. Your assignment must be structured with Introduction,
Body part (four topics), Conclusion and References, with headings in line with the
assignment question.
 It is extremely important that you do not copy from each other. We will watch out for
assignments with high similarity rates. Please make yourselves aware of the
Universities policies on collaboration and plagiarism and other forms of academic
misconduct such as contract cheating.
 Submission format: Turnitin Submission PDF document. Calculations in an excel file.
 Only one student on a group needs to submit.
 Indicate on the front page: For EACH student: name, student number, name of tutor
and time of tutorial followed by peer evaluation form.
 Referencing: APA 6 is preferable
 Marks distribution:
Topic Marks