ACC10007 Financial Information for Decision Making - Super Retail Group - Assignment Help

GENERAL

Students are encouraged to commence this assignment as soon as practicable, noting that the analysis of financial statements using appropriate ratios is covered in week 7 & 8. This is a group assignment (maximum of four students) and is not to be undertaken independently.

During  analysis,  students  are  encouraged  to  look  beyond  COVID  as  the obvious reason for changes in ratios. Adhering to only ‘COVID’ as the cause for changes in the ratios will not qualify as well-rounded analysis. Please research and include other reasons in your analysis.

REQUIREMENTS

• You are required to undertake financial statement analysis on Super Retail Group and prepare a written report (3,000 words) - see required structure
• Use the data from Super Retail Group’s financial statements to undertake financial statement ratio analysis – see
• Your report must incorporate financial statement analysis that examines the profitability, asset efficiency, liquidity, capital structure (solvency) and cash flows of Super Retail Group.
• Your report should cover a 3-year period for the periods ending 2019, 2020 and 2021 and should be sufficiently broad in scope to demonstrate your understanding of findings, following the
• The Super Retail Group Annual Reports can be downloaded via
• Please use the correct Annual report as indicated:
  • Use 2021 Annual report ONLY for all values for 2021and 2020
  • Use 2019 Annual report ONLY for all values for 2019 and 2018

(Please do not alter the approach, so as to maintain consistency across all calculations)

REPORT STRUCTURE

1. Title Page
   • Title of your report
   • Group allocation (i.e., Name of tutor, time and day of tutorial, Group number)
   • Student names and D.

2.    Declaration and Statement of Authorship (See Appendix A)

3. Group Assignment Contract (See Appendix B)

4.    Group Contribution Table (See Appendix C)

5. Executive Summary
   • A brief discussion of the aim and scope of the
   • A brief discussion of the
   • A brief discussion of key findings and

6.    Company and Industry Background

• Brief company profile of Super Retail Group – include its history, financial highlights, and other relevant company information such as when and where it started operations; any major expansions and acquisitions from then to now; types of products/services it offers, significant business
• Industry – includes identifying which industry it operates in, an understanding of the state of the industry and identifying major

7.    Ratio calculations (to be included in Appendix)

The minimum ratios to be calculated for each of the 3 years (2019, 2020 and 2021) are:

·         Profitability

• Return on Equity
• Return on Assets
• Gross Profit Margin
• Net Profit Margin
• Cash Flow to Sales
• Asset Turnover

·         Asset Efficiency

• Days in Inventory
• Days in Debtors
• Activity Cycle

·         Liquidity

• Current Ratio
• Quick Ratio
• Cash Flow Ratio

·         Capital Structure (Solvency)

• Debt Ratio
• Debt to Equity Ratio
• Equity Ratio
• Debt Coverage Ratio
• Interest Coverage

All detailed ratio workings should appear in the appendices and not in the body of the report – See Appendix D for suggested format for the ratio calculations. You can, however, present the ratio answers in tables in the main report (Section 8) to assist your analysis, but do not include your detailed workings/calculations in Section 8.

• Please use the correct Annual report as indicated –
  • Use 2021 Annual report for all values for 2021 and 2020
• Use 2019 Annual report ONLY for all values for 2019 and 2018 (Please do not alter the approach, so as to maintain consistency)

7.1.   Assumptions and other useful information for calculating ratios:

• Provide 2 decimal points for your final
• Ratio formulas to be used as per the Week 7 and 8 Lecture Summary Videos.
• Use Trade Receivables shown in the notes to the accounts when calculating Days
• Assume that 5% of sales are credit

8.    Analysis and interpretation of financial ratios

• Based on the financial reports and other information, undertake financial statement analysis and interpretation that covers the prior three financial years ending 2019, 2020 and 2021, concentrating on the following aspects:

• Profitability
• Asset Efficiency
• Liquidity
• Capital Structure (Solvency)
• Please note that analysis does not mean just restating the ratios or their formulas you need to discuss the reasons why the ratio changed and its
• Your analysis should incorporate benchmarking such as comparison to competitors and/or industry averages.

9.    Analysis and Interpretation of Cash Flow Statements

• Your analysis should also include a review of Super Retails Group’s operating, investing, and financing cash flows over the three years. Consider absolute figures, trends and any relevant ratios to assist your

10. Assessment of other relevant information

• An assessment of other information, including non-financial, that is relevant to the assessment of Super Retail Group. For example, global events, industry developments and issues, unusual or one-off events, structural changes to the company such as changes in board

composition, mergers or acquisitions, economic factors, charities etc. and any other relevant issues which may potentially impact on the operations of the company.

• Consider also its environmental and social

11.  Summary and conclusion

• Based on your analysis and findings, summarise Super Retail Group’s current financial situation, consider its potential outlook and make any

12.  Appendices

• Ratio calculations/workings,

13.  References

It should be in adherence to Swinburne Harvard style referencing: https://www.swinburne.edu.au/search?collection=swinburne- search&query=swinburne+harvard+style+guide

SUBMISSION CONSIDERATIONS

• Word limit 3,000 words (excluding tables, graphs and appendices, title page, executive summary and bibliography).
• This assignment (including the Group Assignment Contract) is worth 20% of your final
• The report must be the work of the group and any material used from other sources (particularly reports from banks, investment analysts/brokers, ) must be acknowledged and appropriately referenced.
• The report format and structure, spelling, grammar and punctuation will all be
• All references should be appropriately
• Other types of useful information may be available from the following sources:
• DatAnalysis Premium – A Database accessible through Swinburne Library, useful for ASX Announcements, company history, annual reports, directors and management,
• Industry Context: Australian Bureau of Statistics (ABS), IBIS (Swinburne University Library has access to some but not all ABS and IBIS information);
• Market: Australian Securities Exchange (ASX) asx.com.au.
• Newspapers: Australian Financial Review, other newspapers and business
• Newsletters issued by stockbrokers and fund
• Note: Students are not expected to purchase industry or company specific reports from commercial Only resources which are available through Swinburne University Library or on corporate or other websites (or other media such as Newspapers electronically available for example) and which are free of charge are expected to be used.
• Only one submission per group is required. Submission instructions will be provided on
• No extensions will be considered for the assignment submission due date unless a written request is submitted to and agreed by the Unit A penalty of 1 mark per day late will apply to late assignments

HELPFUL HINTS

Use of figures and tables in analytical reports

• While we encourage the use of figures and tables to help embellish a report, it is important to bear in mind that they should not overshadow the substance of the Indeed, a report which consists predominantly of figures and tables with very little explanatory text would not have addressed the analysis component from an assessment perspective. Students should consider placing large items of data in the appendices and referring the reader to these sources of information when required.
• Note however, that it is not sufficient to refer the reader to an appendix without citing the appropriate detail. Take for example, a report which has a large appendix (at the end of the report) showing all the ratios calculated for the company over a three-year period, and one ratio in particular; ROA has declined considerably during that It is not sufficient for the analyst to state that “the ROA has deteriorated significantly over the three-year period as shown in Appendix…..”. The detail of the movement must be stated, for instance, “ROA has deteriorated significantly from ……% in …. (Year), to …..% in ……. (Year)’.
• Students can then either refer the reader to the appendix after each calculation or preferably make a reference to the appendix at the start of the analytical section. For example, at the start of the profitability analysis section, the following statement might be appropriate: “For detailed calculations relating to the following analysis, refer to appendix…….”.

Note also that if figures and tables are used in the body of the report, students must also cite the relevant data (numbers, ratios etc) in the body of the report and additionally make reference to the table. For example, “Table 1.3 shows that ROA has deteriorated significantly from ……% in ….(year), to …..% in

…….(year)’. Adhering to only COVID as a cause for changes in the ratios will fail to qualify as well-rounded analysis. Please research and include other reasons in your analysis.