SGR

FIN600 T3 2022
STUDENT NAME: STUDENT ID: A000
Student name – ID
FIN600 T3 2022

Assessment 2 - SGR

Executive Summary

*What your report is about

*Summarise SGR who they are and any key characteristics
*Summarise financial performance 2022
*Summarise ratio analysis
*Would you invest

in 1 page
ensure to reference
single line space

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Student name – ID
FIN600 T3 2022

Assessment 2 - SGR

Contents

1.0 Introduction – Background and Business........................................................................................................... 3

2.0 Current financial performance, Key financial highlights, Economic outlook.......................................................4
3.0 Ratio Analysis.................................................................................................................................................... 5
3.1 Profitability and Market ratios................................................................................................................ 5
3.2 Efficiency ratios....................................................................................................................................... 6
3.3 Liquidity ratios........................................................................................................................................ 7
3.4 Gearing ratios......................................................................................................................................... 8
4.0 Recommendations and overall assessment....................................................................................................... 9
5.0 References/Bibliography.................................................................................................................................. 11
6.0 Appendices – SGR Appendix excel spreadsheet............................................................................................... 12

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Student name – ID
FIN600 T3 2022

Assessment 2 - SGR

1.0 Introduction – Background and Business

Discussion
*Who is SGR
*Different business segments - can dot point segments
3 paragraphs

3
Student name – ID
FIN600 T3 2022

Assessment 2 - SGR

2.0 Current financial performance, Key financial highlights, Economic outlook

*Summary of financial performance for 2022

ENSURE YOU COVER THE BELOW, USE EACH LINE AS A HEADING

Financial highlights/events of 2022

(use dot points)

Economic Outlook
(use dot points)

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Student name – ID
FIN600 T3 2022

Assessment 2 - SGR

3.0 Ratio Analysis

3.1 Profitability and Market ratios

(see appendix for calculations) 2022 2021 Industry average

Return on equity -5.75% % 13.90%
Return on assets % % 30.76%
Net profit margin % % 15.07%
Expense ratio % % n/a

Cash flow to sales % % n/a

Dividend payout ratio 0.00% % 33.18%

Price earnings ratio XX times XX times 24.91 times

*Ensure the table matches appendix exactly, this will be checked in your final submission

Suggested discussion
*What happened to the Profitability Ratios overall?
*Why did the change occur
*What specifically happened at SGR
*Where there is minimal change could elaborate on why SGR remains stable

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Student name – ID
FIN600 T3 2022

Assessment 2 - SGR

3.2 Efficiency ratios

(see appendix for calculations) 2022 2021 Industry average

Asset turnover times times n/a

Days inventory days 89.00 days n/a

Days receivables days 14.50 days n/a

Times inventory times times n/a

turnover
Times receivables times times n/a

turnover

*Ensure the table matches appendix exactly, this will be checked in your final submission

Suggested discussion
*What happened to the Efficiency Ratios overall?
*Why did the change occur
*What specifically happened at SGR
*Where there is minimal change could elaborate on why SGR remains stable

6
 Student name – ID
FIN600 T3 2022

Assessment 2 - SGR

3.3 Liquidity ratios

(see appendix for calculations) 2022 2021 Industry average

Current ratio XX:1 XX:1 1.23:1
Quick ratio XX:1 XX:1 n/a

Cashflow ratio times times n/a

*Ensure the table matches appendix exactly, this will be checked in your final submission

Suggested discussion
*What happened to the Liquidity Ratios overall?
*Why did the change occur
*What specifically happened at SGR
*Where there is minimal change could elaborate on why SGR remains stable

7
 Student name – ID
FIN600 T3 2022

Assessment 2 - SGR

3.4 Gearing ratios

(see appendix for calculations) 2022 2021 Industry average

Debt to equity ratio % % 67.75%
Debt ratio % % 30.49%
Equity ratio % % n/a

Debt coverage times times n/a

Interest cover ratio times times n/a

*Ensure the table matches appendix exactly, this will be checked in your final submission

Suggested discussion
*What happened to the Gearing Ratios overall?
*Why did the change occur
*What specifically happened at SGR
*Where there is minimal change could elaborate on why SGR remains stable

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Student name – ID
FIN600 T3 2022

Assessment 2 - SGR

4.0 Recommendations and overall assessment

Discussion
ENSURE YOU COVER THE BELOW IN YOUR DISCUSSION, USE EACH LINE AS A HEADING
Discuss all the below in relation to ratios and information from reports.

Has 2022 been better than 2021 for SGR?

Relate to the ratios
Do the ratios show improvement or decline or stability, which ratios show this?
2-3 paragraphs

Will SGR succeed in the future?

Relate to the ratios
Which ratios show if SGR will or will not succeed in the future
2-3 paragraphs

The likelihood of a merger or acquisition for SGR

Relate to the ratios
Will SGR merge with another company or be acquired by another company?
What do the ratios convey about this?
2-3 paragraphs

The impact of the political competitive environment on the business

External factors that need to be taken into consideration
Discuss the political pressures and external environment on SGR
2-3 paragraphs

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Student name – ID
FIN600 T3 2022

Assessment 2 - SGR

Suggest what should SGR be doing help it succeed

Relate to the ratios
Which ratios require improvement and/or maintenance? What should SGR be doing to improve
these?
2-3 paragraphs

Would you invest SGR?

Relate to the ratios
1-2 paragraphs

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Student name – ID
FIN600 T3 2022

Assessment 2 - SGR

5.0 References/Bibliography

11
Student name – ID
FIN600 T3 2022

Assessment 2 - SGR

6.0 Appendices – SGR Appendix excel spreadsheet

leave this page blank and submit Appendix in .xls format as a separate file

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