1. Go to e-resources on the WSU Library website and from the alphabetical list click on "D" and then pick the
DatAnalysis Premium database. Once you are in the database, go to the search engine on the top right-hand side and enter each the following company's ASX code:
- Bega Cheese Limited (ASX code: BGA) - Inghams Group Limited (ASX code: ING)
For each company, the displayed page summarises general information about the company including the sector and industry in which it operates, total market capitalisation of the firm, latest closing share price, etc. Both firms are operating in the same sector and Industry Group (Food, Beverage & Tobacco) and same Industry (Food Products).
2. On the left-hand side, click on "Financial Data". The displayed page shows annual and interim information for your assigned companies (in the view bar, make sure you choose annual and not interim data). On the page's control bar at the top, you will see the first three icons which displays the company's summarised annual financial statements (income statement (profit & loss statement), balance sheet and the cash flow statement).
3. The figures shown on the Financial Data page are rounded figures and are not to be used in the calculation of ratios. To access the raw figures, select the relevant time period from the 'year range' drop down bars, and click on 'go'. Once the figures appear, click on the download spreadsheet button. This will download an Excel file that contains all the relevant financial statements i.e. Profit & Loss Statement, Balance Sheet, etc.
4. In the downloaded Excel file, you will see a sheet titled "Revenue Expense" in which you can locate the Cost of goods sold (COGS) for each company for the different years.
5. For more detailed information about how to obtain the data required for your group assignment, please watch the 'How to Obtain Data for the Group Assignment' video. The video is located in the Assessment Zone under the Assessment 2: Numerical Problem Solving link. Ideally, your group should watch this video prior to commencing the assignment.
Your team has been hired as financial analysts by Pinnacle Investment Fund. The Fund has identified the Food Products industry to be experiencing growth and have selected two firms as potential investments. The Fund requires your team to analyse the financial position and performance of the above assigned two companies for the two stated financial years (2017 and 2018), and to provide a recommendation as to which may be the best company for the Fund to invest into, if any. As a financial analyst, you are primarily concerned with three main financial aspects for each of the two firms: overall liquidity, capital structure and shareholders' profitability.
Your task involves answering the following 5 questions in your own words (i.e. do not simply "cut and paste" information from the Annual Report or any other source). You must apply critical thinking concepts when explaining and justifying your choices.
BASED ON THE INFORMATION AVAILABLE ON THE DatAnalysis Premium
DATABASE FOR BOTH ASSIGNED COMPANIES, ANSWER ALL OF THE FOLLOWING QUESTIONS (1 TO 5 INCLUSIVE).
QUESTION 1: Analyse the overall liquidity position for each of the two companies in 2018 as compared to 2017. Calculate the values for two liquidity ratios to help support your answer and justify why you have chosen these ratios. Note: ensure that you analyse in this question, not just describe the ratio values.
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