Assignment Title CW1: Evaluation of business financial performance

Assessment Information
This assignment is a group assignment.
This assignment requires you to complete the following task:
Your group is a firm of investment advisers and you have been provided with the most recent published annual financial statements for two different companies Sports Direct International plc
JD Sports Fashion plc. Copies of each company’s Annual Report can be found on the module Aula page, along with a spread sheet of computed financial ratios for each company.
Your team has been tasked with the duty of creating a report to the investors, advising them on which
company would make a more attractive investment option. Please note that all references to the Annual Reports in your investor report should include the page number so that markers can identify the information you are referring to.
You are required to address each of the following tasks within your report:
1. A brief background of each company, highlighting the main markets and sources of revenue (150 words).
2. An interpretation and assessment of each group’s recent financial performance and position based
exclusively on the financial statements in the Annual Reports and the calculated ratios in the spread sheet on the Aula page (1,050 words).

This assessment should cover the following five core areas: –
a) Profitability;
b) Liquidity;
c) Efficiency;
d) Gearing;
e) Investment potential.

3. A reappraisal of the group’s recent financial performance and position based on contextual information in the Strategic Report section of the Annual Report (1,000 words).

4. Based on your analysis, recommend and explain which company would make a more suitable investment option for the investors (500 words).

5. An explanation of the limitations of your analysis, including the ratio analysis technique (300 words).

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