- Read the content of Module 9 and 10 to prepare for this Assignment.
Assignment Tasks:
· You are required to conduct a financial statement analysis of a publicly listed company (PLC) from the following list:
· Brick Brewing Company Limited
· Big Rock Brewery
· Jean Coutu Group
· Indigo Books and Music Inc.
· Magna International Inc.
· Maple Leaf Foods Inc.
· Metro Inc.
· Mitel Networks
· Saputo Inc.
· Second Cup Coffee Company
· SNC-Lavalin Group Inc.
· CGI Group Inc.
· WestJet Airlines Ltd.
· Cineplex Inc.
· Cara Operations Limited
· George Weston Limited
· Loblaws Company Limited
· Celestica Inc.
· Leon’s Furniture Ltd.
· Jean Coutu Group Inc.
· Roots Ltd.
· Canadian Tire Corporation
· Air Canada
· National Canadian Railways
· High Liner Foods Inc.
· Tim Hortons Inc. (uses the name Restaurant Brands International Limited Partnership – uses US GAAP which I will allow for this assignment)
· Rogers Communications
· Alimentation Couche-Tard Inc.
The analysis should be divide in the following three parts:
Part I: Knowledge of the Client’s Business and Risk Assessment (no more than 500 words)
· You should provide an overview of the company’s business, industry it operates in, its products/service, its geographical presence and the details of the top management of the company.
Part II: Analytical Review and Calculation of Critical Financial Ratios
· You should conduct financial ratio calculation and interpretation for the latest year end numbers. No need to show calculations. Only the final result and its interpretation/analytical insights are required.
· Calculate and provide analytical insights of various ratios under liquidity ratios, profitability ratio, and solvency ratios.
· Perform horizontal common size financial statement analysis using 2020 (or the most recent previous year’s data) as the base year and provide analytical insights.
Part III: Audit Report and Risks (no more than 800 words)
· Go into the Annual Report and look for management’s risk analysis – most companies will assess the future business risks of their company.
· Describe one risk facing the company that is interesting and different from all other types of companies – i.e., it is specific to its business – DO NOT DISCUSS ANYTHING TO DO WITH SOFTWARE TECHNOLOGY AS THIS IS COMMON TO ALL COMPANIES
· Go to the Independent Auditor’s Report and identify the auditor of the company and determine if the company receive a clean opinion? How do you know? (2 marks)
· Check for any related party transactions disclosed – you may need to go to the Notes to the F/S unless management has disclosed it in the MD&A (remember Chapter 3 and risk analysis) Select one related party noted and provide details on what was involved in the transaction and who the transactions were with.