BAFI1070 Financial Statement Analysis

This assignment comprises 40% of your overall grade in BAFI-1070

You are a new stock analyst in ABC research house. You are required to write a report of your target firm MMA offshore Limited (MRM) to initiate the coverage of the company. The report should be about the fundamental analysis of this firm, including the industry analysis, strategy analysis, financial performance analysis, and your analysis of the current financial status in this firm and your expectations of the future financial status in this firm. 

This assignment is more of a test for the understanding of the process rather than just the final conclusion.

In this report, you should cover the following five aspects:

Based on the financial data of the target firm and the other firms in the same industry from the fiscal year 2017 to 2023:

1, Industry Analysis: What is the overall competition status in this industry? And what is the position of your target firm in this industry?

You are expected to use Porter’s five forces to help you analyse the competition status and find the position of the target firm in the competition. Please provide the related financial or economic data to support your argument in this part. The economic or financial data you could use are not restricted to the period 2017 to 2023.

2, Company Strategy Analysis: What is the strategy of your target firm?

You are expected to describe the company’s strategy compared to the other firms in the same industry from finance perspective. Due to Covid impact, your company strategy analysis should provide financial ratio analysis based on the data from the fiscal year 2017 to 2019 to support your argument.

3, Financial Performance Analysis: What is the current financial status of this firm? Whether this company has successfully implemented the company strategy since 2020?

You should analyse the current financial status of this target firm for the period 2020 to 2023 from the following aspects: the operating profitability and the operating efficiency. You should compare the current financial status of this firm with the prior financial status and comment on whether this firm has successfully implemented the strategy that you have identified in question 2 since 2020 (the covid period). You are expected to summarize what are the key points (strengths and weaknesses) that lead to the successful or unsuccessful implementation of strategy in this firm.

4, Conclusion: What is your expectation of future financial status in this firm? Do you think the company should stick to or change the strategy in the future?

You are expected to discuss the potential future opportunities and threats faced by the firm. You are suggested to use the SWOT framework to connect the current strengths and weaknesses (i.e. the key points you have identified in question 3) with the future opportunities and threats to present your expectations of the future financial status in this firm. You need to conclude whether this firm should stick to or change the strategy in the future.

Your main source of information should be the firms’ annual reports, DatAnalysis Premium, and public information such as websites, databases, current news etc.

From the DatAnalysis Premium, you could search the target firm and firms in the same industry and click “Financial Data”, and you could use the data in Profit&Loss, Balance sheet, Cash Flow, Revenue/Expense, but you are not allowed to use the data in Per Share Stats, Sundry Analysis, Growth Rates, Ratio Analysis, and Asset Base Analysis in this assignment. You could also access all the annual report of your interested firm from the year they listed to present via this database.

• The whole report should be written in a formal research report format (including an introduction and main body covering the five aspects) . The maximum number of words for this assignment is 3000 words (excluding tables, references and appendices). The appendix must not exceed 2 pages (with Arial 11 point, single-spaced).
• An electronic copy of calculation spreadsheet, Turnitin originality report (automatically generated on Canvas when you submit your report) and the Word or PDF version of the report should be included when submitting the assignment online via Canvas. Do not submit a Zip file. Please separately submit calculation spreadsheet and report on Canvas.