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    Business Finance Project

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    sidra.mehmood
    business finance

    Copyright:

    © All Rights Reserved
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    Business Finance Project

    Uploaded by

    sidra.mehmood
    7 views6 pages
    business finance

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    © © All Rights Reserved

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    PDF, TXT or read online from Scribd

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    business finance

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    7 views6 pages

    Business Finance Project

    Uploaded by

    sidra.mehmood
    business finance

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    You are on page 1of 6

    Business Finance

    Title: Financial Performance Evaluation Project


    Short Description:
    In the fast-paced business world, organizations continually aim to optimize their operations and
    financial results. A crucial aspect of this pursuit is the implementation of robust internal control
    systems. Internal controls serve as a guiding compass, enabling organizations to efficiently
    achieve their objectives. Among these objectives, one of the most significant is maximizing
    shareholder wealth, a fundamental goal for businesses.
    The underlying theory suggests a strong link between a robust internal control system and
    improved financial performance. In practice, organizations assess their financial health and
    effectiveness using standard accounting metrics such as Return on Assets (ROA), Return on
    Equity (ROE), and Return on Capital (ROC).
    This project offers students a practical opportunity to validate and explore the alignment of
    auditing and accounting theories with the dynamic real-world market environment. Students will
    dissect internal control systems, examine their impact on financial performance, and critically
    evaluate the relevance of accounting and auditing principles in actual business scenarios
    Submission Guidelines:
    1. Report Submission: Students are required to submit their projects in Excel and Word file
    format and the final project reports electronically as PDF documents via the course's
    Google Classroom Platform. The submission deadline is 08-Jan-2024.
    2. Presentation: The presentation of the report will take place after 12-Jan-2024.
    Report Requirements:
    1. Report Length: The report should be between 10 – 15 pages, excluding appendices.
    2. Formatting: Use a standard font (e.g., Times New Roman, Arial) with 12-point font size
    and 1.5 line spacing. Include page numbers and a cover page with the project title, your
    name, the course name, and the date.
    3. Citations: Use appropriate citations and references following a recognized citation style
    (e.g., APA, MLA). Ensure that all sources are properly cited both within the text and in
    the references section.
    4. Appendices: Include supporting documents, Ratios analysis, horizontal and vertical
    analysis details, charts, graphs, and any additional data in the appendices as needed
    Project Objectives:
     Understand the Significance of Internal Control.
     Investigate the Impact of Internal Control on Financial Performance.
     Apply Statistical Analysis Techniques.
     Conduct Context Selection and Data Collection.
     Develop Effective Reporting and Presentation Skills.
    Thus overall, this project aims to provide students with a comprehensive understanding of
    financial analysis techniques used in the business world. It focuses on evaluating the financial
    performance of a publicly listed company on the Pakistan Stock Exchange (PSX) - XYZ
    Company. Through this project, students will gain practical experience in conducting vertical and
    horizontal analysis, assessing liquidity and profitability ratios, and drawing meaningful
    conclusions to support informed financial decisions.

    Project Requirements:

    Access to financial statements of XYZ Company from the PSX or other reliable sources.
    Profitability Ratios Analysis
     Explanation of Profitability Ratios
     Gross Profit Margin
     Operating Profit Margin
     Net Profit Margin
     Calculation and Interpretation of Ratios
     Trend Analysis Over Time
    Liquidity Ratios Analysis
     Introduction to Liquidity Ratios
     Current Ratio
     Quick Ratio (Acid-Test Ratio)
     Calculation and Interpretation of Ratios
     Evaluation of Liquidity Position

    Common Sizing Analysis


     Common Sizing Concept and Purpose
     Common Sizing of Financial Statements
     Income Statement (Common-Size Income Statement)
     Balance Sheet (Common-Size Balance Sheet)
     Interpretation of Common Sizing Results
     Vertical Analysis (Income Statement and Balance Sheet)
     Explanation of Vertical Analysis
     Vertical Analysis of the Income Statement
     Vertical Analysis of the Balance Sheet
     Insight into Company Structure and Composition
    Firm Size and Financial Performance
     Assessment of Company Size and its Relevance
     Relationship Between Size and Financial Performance
    Discussion and Conclusions

     Summary of Key Findings


     Insights into the Company's Financial Performance
     Implications and Recommendations (if applicable)
     Limitations and Challenges Encountered
     Future Research Directions

    Spreadsheet software (e.g., Microsoft Excel or Google Sheets).


    Analytical tools and formulas for vertical and horizontal analysis, liquidity, and profitability
    ratios.

    Learning Outcomes
    • Gain knowledge about the importance of internal control mechanisms in organizations.
    • Learn how to collect and analyse data to assess the influence of internal control variables
    on financial performance metrics.
    • Acquire skills in conducting statistical analysis, including descriptive statistics,
    correlation analysis, and regression analysis.
    • Develop the ability to select an appropriate research context and collect relevant financial
    data.
    • Enhance communication skills by preparing a well-structured research report and creating
    a formal presentation using PowerPoint slides.
    Evaluation:
    Students will be evaluated based on the following criteria:
     Completion and accuracy of the financial analysis.
     Clarity and depth of insights gained from the analysis.
     Presentation and formatting of the analysis report.
     Ability to make informed recommendations based on the analysis.
     Overall understanding of financial analysis concepts.
    Submission Guidelines:

    Project Report: Students are required to submit a comprehensive project report in PDF format.
    The report should include:

     Title page with the project title, student names, and date of submission.
     Executive summary summarizing key findings.
     Introduction to XYZ Company and its industry.
     Detailed analysis of vertical and horizontal analysis, liquidity, and profitability ratios.
     Interpretation of the analysis results.
     Recommendations for XYZ Company based on the analysis.
     Conclusion summarizing the project's key takeaways.
     Appendices with all calculations, spreadsheets, and data sources used.
     Presentation: Prepare a brief presentation summarizing the key findings and
    recommendations. Each group will present their findings to the class.

    Project Timeline:

    Week 1-2: Introduction to financial analysis concepts and tools.


    Week 3-4: Gathering financial data of XYZ Company.
    Week 5-6: Conducting vertical and horizontal analysis.
    Week 7-8: Calculating liquidity and profitability ratios.
    Week 9-10: Formulating conclusions and recommendations.
    Week 11: Preparing the project report and presentation.
    Week 12: Presentation of findings to the class and submission of the project report.
    Note: Ensure that all financial data used in the analysis is up-to-date, and cite the sources
    appropriately. Plagiarism will not be tolerated, and the project must be an original work of the
    student group. Additionally, encourage students to seek guidance from the instructor if they
    encounter challenges during the project.
    Assessment Criteria:
    • Context Selection and Data Collection (20%)
    • Statistical Analysis (25%)
    • Interpretation of results (25%)
    • Formatting and Presentation (25%)

    Suggested Report Content


    • Executive Summary
    • Introduction to the Project
    • Provide reasoning for choosing a particular sector
    • Data Analysis
    • Data Visualization
    • Interpretations of the Results
    • Conclusion
    • Recommendations
    • Appendices
    • Supporting documents, charts, graphs, and additional data.
    • References

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