Orion Manufacturing Ltd is considering replacing part of its existing production system with automated equipment. The investment is expected to increase production capacity, reduce operating costs and improve product

Using five (5) relevant ratios calculated by you, evaluate the performance of M&S during 2026 when compared to 2025. FINANCIAL MANAGEMENT SBS – MBA

Assignment 2026 GENERAL INSTRUCTIONS All assignments are to be submitted on 15th October 2026 on https://me.academiaerp.com Completion of the course evaluation survey is a mandatory requirement. You are required to complete the survey and submit a screenshot of the completed survey along with your assignment document. Please note that failure to complete the survey may result in delay in processing your degree and releasing the grades. Any Assignment submission extension request must come to Azra Fatima (Assistant Vice President (AVP) of Academics) afatima@edstoneglobal.com 5 days before the date of submission with a valid reason and supported documentary evidence. Second extension cannot be provided without supporting documentary evidence. If a program participant submits the assignment late, but within 1 week after the submission date a 20% penalty will be applied. Any rescheduling request can be fulfilled within one week after the actual date of the assessment. Any late request will not be obliged. Any revaluation request should come in 5 days of grade release. Any late request will not be obliged. (Form and other details shall be shared based on request). Revaluation cannot be requested for plagiarized assignments as the assignment stands as an academic misconduct. Re-evaluation request is NOT applicable for any failed courses provided the mark range from 59 to 69. Any grade which is below the range is however not applicable for this request. APA 7th edition referencing guidelines needs to be followed. Similarity between student’s work is strictly not accepted, any student found with similar work will be graded Zero and fail for the course. However, Plagiarism is an academic offence and will not be tolerated. Program participants are strongly advised to keep a copy of their work in case the submitted copy should go astray. Assignment once submitted to exam board is final for marking. PS. Kindly note to adhere to all the above instructions. Failing to read this, SBS will not be responsible for any actions taken.

Total Marks________ / 90

PLAGIARISM Plagiarism is defined as providing material from an uncredited source, or without the acknowledgement of the original author. For longer submissions and reports, students are required to provide an Assignment Cover Sheet, which states that submission is their original work, and has not been submitted for another assignment, either in that course, or another

Plagiarism may have many forms including but not limited to:

Outright copying another author’s work without acknowledgement. Cut and paste without the correct citation and acknowledgement. Copying key words but changing the sentence structure without crediting the original source. Copying the sentence structure but changing some words without crediting the original source. Following the structure or organization of another author’s work, or order of presentation of ideas. Submitting work that was created by an unacknowledged third party (i.e., writing service, or another student). Copying from published authorities without acknowledgement. Failure to correctly use quotation marks when expressing another author’s idea. Incorrect or improper use of in-text citation and referencing. Missing or incorrectly presented bibliography or reference list. Pretending ownership of another author’s ideas. Making work available to another person for copying. Falsifying results. The plagiarism tolerance for MBA is 8 %. In cases where the plagiarism percentage exceeds the tolerance, students are given a second chance to rework on their assignments and submit. However, if the percentage continues to exceed the tolerance percentage the student will be awarded one grade. Assignment Answer all the Questions. (Word Limit 2,000 – 3,000 words) Question 1 Using M&S’s 2026 Annual Report and Financial Statements (available at https://corporate.marksandspencer.com/investors/our-performance-updates/2026-annual-report) answer the following questions:

1. Using five (5) relevant ratios calculated by you, evaluate the performance of M&S during 2026 when compared to 2025. (15 marks)
2. Critically discuss the limitations of ratio analysis as a tool to evaluate the financial performance of an organisations such as M&S. (15 marks)

Question 2 Orion Manufacturing Ltd is considering replacing part of its existing production system with automated equipment. The investment is expected to increase production capacity, reduce operating costs and improve product quality.

The new equipment would cost £1,200,000 and have an expected useful life of five years. It is expected to have a residual value of £100,000 at the end of Year 5.

The following additional annual net cash flows are forecast:

Year

Net Cash Flow

1

£270,000

2

£320,000

3

£360,000

4

£390,000

5

£420,000

The company`s required rate of return is 10%. Required:

1. Calculate the projects a) Payback period and b) Net Present Value and state whether the investment should be accepted under each technique. (10 marks)
2. Explain why NPV is generally regarded as a stronger investment decision-making technique than payback period. Your answer should consider the time value of money, shareholder value and long-term cash flows. (10 marks)
3. Identify and discuss three non-financial factors that management should consider before making the final investment decision. (10 marks)

Question 3 Nova Distribution Ltd has experienced rapid sales growth, but management is concerned that the business is increasingly dependent upon short-term borrowing.

The following information is available:

Working capital measure

Current position

Inventory holding period

68 days

Receivables collection period

47 days

Payables payment period

42 days

Annual credit sales

£14,600,000

Annual cost of sales

£10,950,000

Management would like to achieve the following within the next year:

Inventory holding period: 55 days Receivables collection period: 35 days Payables payment period: 45 days

1. Calculate:

The company’s current cash operating cycle Its proposed cash operating cycle following the changes The number of days by which the cash operating cycle would be reduced (10 marks) 2) Using the information provided estimate the approximate amount of cash that could be released through:

Reducing inventory days from 68 to 55 Reducing receivable days from 47 to 35 Comment on the results. (10 marks) 3) Critically evaluate the statement “minimising working capital always increases shareholder value”.

Your answer should consider the trade-off between liquidity, profitability, operational resilience and relationships with customers and suppliers. (10 marks)