MAN605 Financial Analysis and Decision Making Copyright all text and images unless otherwise stated Semester 1 2020 1 of 4 Assessment 3: Report on financial health of a Business Assessment Type: Business or Formal Report format Weighting: 25% Word Limit: 1,500 words Due date: Friday 15th May 2020 by 11:59pm (Week 10) Your manager has been asked to prepare a report for the Board of Directors on the financial health of the business from 2016-2019 and needs your help. Over this time the strategic focus of the business has included maximising return to shareholders and the Board is
View complete question MAN605 Financial Analysis and Decision Making Copyright all text and images unless otherwise stated Semester 1 2020 1 of 4 Assessment 3: Report on financial health of a Business Assessment Type: Business or Formal Report format Weighting: 25% Word Limit: 1,500 words Due date: Friday 15th May 2020 by 11:59pm (Week 10) Your manager has been asked to prepare a report for the Board of Directors on the financial health of the business from 2016-2019 and needs your help. Over this time the strategic focus of the business has included maximising return to shareholders and the Board is questioning if this enables managers to make the most appropriate decisions. On the following pages you will find: _ Financial ratios downloaded from the organisations financial reporting system _ Company information background, vision, strategy You may not have all the information to complete a full analysis so you will need to include in your report any additional information you need and why your manager is expecting this. Your manager hopes that your analysis will show that the business is healthy and therefore that she is performing well in her role. Required Prepare a report for your manager, in formal or business report format, that assesses the financial health of the organisation. Your report must include the following: _ your assessment of the financial health of the organisation from 2016 to 2019. This would include an explanation of the ratios or other data you are using to support your analysis. _ any additional information that you need to complete your analysis. _ an explanation of at least 3 (but not limited to) recommendations that your manager can take to the Board of Directors that are related to the strategic focus of the business (see Company information). You may refer to the lecture and tutorial notes and activities to help you organise your analysis but you are not required to do this. Your report is to be submitted to Turnitin. Please refer to the Faculty assessment regulations for more information. A marking guide is available on MyWAI under the assessment information tab. You may also refer to the Faculty of Higher Education Glossary to check on the format of a Business Report or to the LRC pages which explain the format for a formal report. MAN605 Financial Analysis and Decision Making Copyright all text and images unless otherwise stated Semester 1 2020 2 of 4 Angliss Casino & Resorts Ltd (ACR) 1 Financial Data 2016-2019 2016 2017 2018 2019 Performance statement summary (Mil) Revenue 3,557 3,253 3,425 2,866 Cost of Revenue 142 154 159 158 Gross profit 3415 3099 3266 2709 Operating expenses Restructuring, merger and acquisition – 90 16 – Other operating expenses 2881 2550 2784 2169 Total operating expenses 2881 2640 2800 2169 Operating income 534 459 466 539 Cash Flow data Working Capital (Mil) -39 933 1,232 224 Operating Cash Flow Growth % YOY -23.94 -3.53 57.13 6.34 Balance Sheet Items (in %) % of Total Assets Cash & Short-Term Investments 5.08 20.71 22.57 14.82 Accounts Receivable 3.77 2.63 2.11 1.29 Inventory 0.18 0.2 0.21 0.22 Other Current Assets 0.49 0.52 0.51 0.5 Total Current Assets 9.52 24.07 25.41 16.83 Net PP&E 45.98 46.29 47.49 55.79 Intangibles 19.47 19.41 18.89 19.38 Other Long-Term Assets 25.03 10.23 8.22 8 % of Total Liabilities and Equity Accounts Payable 5.41 5.22 5.21 3.68 Short-Term Debt 0.86 3.97 0.31 3.77 Other Short-Term Liabilities 3.8 4.02 4.8 6.45 Total Current Liabilities 10.07 13.21 10.32 13.89 Long-Term Debt 23.5 17.19 17.98 10.36 Other Long-Term Liabilities 8.64 9.25 8.58 8.98 Total Liabilities 42.2 39.65 36.88 33.23 Total Stockholders' Equity 57.8 60.35 63.12 66.77 1 Angliss Casino & Resorts Ltd is based on publicly listed organizations. Information is used as an example to provide students with a valid and authentic assessment tool. MAN605 Financial Analysis and Decision Making Copyright all text and images unless otherwise stated Semester 1 2020 3 of 4 Profitability Ratios 2016 2017 2018 2019 Asset Turnover (Average) 0.41 0.37 0.41 0.36 Return on Assets % 10.98 21.45 6.68 5.08 Return on Equity % 19.79 36.58 10.85 7.84 Interest Coverage 5.86 14.45 10.78 16.83 Liquidity and Gearing Current Ratio 0.96 1.83 2.46 1.21 Quick Ratio 0.89 1.77 2.39 1.16 Debt/Equity 0.43 0.31 0.28 0.16 Efficiency Ratios Days Sales Outstanding 54.96 63.52 61.95 49.05 Days Inventory 40.03 40.1 39.86 39.37 Receivables Turnover (times) 6.64 5.75 5.89 7.44 Inventory Turnover (times) 9.12 9.1 9.15 9.27 Fixed Assets Turnover 0.9 0.81 0.87 0.7 Asset Turnover 0.41 0.37 0.41 0.36 Company information Angliss Casino & Resorts Ltd (ACR) owns and operates three integrated resorts in Australia as well as managing interests in online betting and online social gaming platforms. Within its core business in the integrated resorts sector, the business generates revenue as follows: 1. Gaming and gaming related activities approximately 77% of revenue 2. Non-gaming related revenues – approximately 23% of total revenue Looking ahead, the companys strategic direction is committed to its Australian integrated resorts in Melbourne, Sydney and Brisbane, as well as maximising returns to shareholders. To support this, the Board have highlighted specific operational areas of focus that include: 1. An ongoing commitment to developing new, as well as refining existing, responsible gaming programs and services. 2. Improve the performance of existing operations by identifying opportunities for nongaming related revenues especially in the Brisbane market. 3. Identifying opportunities for controlling costs in all areas of the business. 4. Continue its commitment to ensuring that each integrated resort provides a world class experience for all guests. 5. Focussing on business transformation which means reducing duplication, increasing automation and stressing digital capability and performance. 6. Identifying opportunities of growing offerings including developing new concepts to offer multiple experiences at each location. End.
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