Financial Statement Analysis of Medifix Limited
Financial Statement Analysis Assignment
Medifix Ltd is a global pharmaceutical company based in Brisbane Australia. Medifix develops, manufactures and markets products to prevent and treat a range of medical conditions. Medifix most profitable products include the bionic heart and the Medivacc influenza vaccine. Medifix is currently in the process of developing a bird flu vaccine, a cure for the AIDS virus and a bionic eye.
· Medifix CEO: Alan Fan. – has a long a distinguished corporate career in the health industry, was a previous CEO of MBF and CSL.
· Financial Statements are audited by KPMG – unqualified audit report has been given.
· Share Prices – are provided in the additional data section (spreadsheet)
You are interested in investing in Medifix and are in the process of collecting and analyzing information. You have so far downloaded a set of financial statements (see excel file) and have also found the above background information. No cash flow statements are available for this company. This assignment has two requirements.
Requirement 1:
Complete the following in the given excel file and submit on blackboard:
Complete the financial statements and compute the following ratios for 20X5 and 20X4 in the document (excel) provided;
NOTE: Once you open the file you must complete the work as you cannot reopen the file. Ensure you have enough time to complete this part (excel) in one sitting.
(i) Open the excel file, Click on “Enable Content” if needed,
(ii) Key in your student ID, your First Name and Last Name,
(iii) Click on “Save & Continue”
(iv) Save the file on your complete without changing the “File Name”
(v) Complete the financial statements and the ratios on the excel file, save it again without changing the “File Name”
(vi) Upload the saved file on blackboard.
(14 marks)
a. Net Profit margin
b. Total Asset Turnover
c. Inventory Turnover
d. Number of Days in Accounts Receivable
e. Return on Assets – DuPont Method
f. Return on Equity
g. Operating margin Ratio
h. P/E Ratio
i. Dividend Payout Ratio
j. Quick Ratio
k. Current Ratio
l. Debt Ratio
m. Debt to Equity Ratio
n. Times Interest Earned
Requirement 2:
Complete the following in MS Word and submit to turnitin on blackboard
1. Provide analytical notes (maximum 1000 words) based on the calculations in the above ratios. These notes should address the broad headings of profitability, liquidity, efficiency and gearing and investment or market return.
(10 marks)
2. Clearly state and explain.(maximum 200 words) three limitations of your analysis
(3 marks)
3. Explain any two additional information (maximum 200 words) that you would seek from publicly available sources, if it were available.
(2 marks)
4. Ensure you provide references to avoid plagiarism.
(1 mark)
FINANCIAL STATEMENT ANALYSIS
MARKING SHEET
Student ID: _____________ Student Name: _________________________________
Requirement 1:
Ratios required in the spreadsheet
/14
Requirement 2:
1. Analytical notes
/10
2. Limitations
/3
3. Extra Information Required
/2
4. Referencing
/1
Total Score
/30
Comments:
______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
Financial Statement Analysis Assignment
Medifix Ltd is a global pharmaceutical company based in Brisbane Australia. Medifix develops, manufactures and markets products to prevent and treat a range of medical conditions. Medifix most profitable products include the bionic heart and the Medivacc influenza vaccine. Medifix is currently in the process of developing a bird flu vaccine, a cure for the AIDS virus and a bionic eye.
· Medifix CEO: Alan Fan. – has a long a distinguished corporate career in the health industry, was a previous CEO of MBF and CSL.
· Financial Statements are audited by KPMG – unqualified audit report has been given.
· Share Prices – are provided in the additional data section (spreadsheet)
You are interested in investing in Medifix and are in the process of collecting and analyzing information. You have so far downloaded a set of financial statements (see excel file) and have also found the above background information. No cash flow statements are available for this company. This assignment has two requirements.
Requirement 1:
Complete the following in the given excel file and submit on blackboard:
Complete the financial statements and compute the following ratios for 20X5 and 20X4 in the document (excel) provided;
NOTE: Once you open the file you must complete the work as you cannot reopen the file. Ensure you have enough time to complete this part (excel) in one sitting.
(i) Open the excel file, Click on “Enable Content” if needed,
(ii) Key in your student ID, your First Name and Last Name,
(iii) Click on “Save & Continue”
(iv) Save the file on your complete without changing the “File Name”
(v) Complete the financial statements and the ratios on the excel file, save it again without changing the “File Name”
(vi) Upload the saved file on blackboard.
(14 marks)
a. Net Profit margin
b. Total Asset Turnover
c. Inventory Turnover
d. Number of Days in Accounts Receivable
e. Return on Assets – DuPont Method
f. Return on Equity
g. Operating margin Ratio
h. P/E Ratio
i. Dividend Payout Ratio
j. Quick Ratio
k. Current Ratio
l. Debt Ratio
m. Debt to Equity Ratio
n. Times Interest Earned
Requirement 2:
Complete the following in MS Word and submit to turnitin on blackboard
1. Provide analytical notes (maximum 1000 words) based on the calculations in the above ratios. These notes should address the broad headings of profitability, liquidity, efficiency and gearing and investment or market return.
(10 marks)
2. Clearly state and explain.(maximum 200 words) three limitations of your analysis
(3 marks)
3. Explain any two additional information (maximum 200 words) that you would seek from publicly available sources, if it were available.
(2 marks)
4. Ensure you provide references to avoid plagiarism.
(1 mark)
FINANCIAL STATEMENT ANALYSIS
MARKING SHEET
Student ID: _____________ Student Name: _________________________________
Requirement 1:
Ratios required in the spreadsheet
/14
Requirement 2:
1. Analytical notes
/10
2. Limitations
/3
3. Extra Information Required
/2
4. Referencing
/1
Total Score
/30
Comments:
______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
