This assessment is designed to develop your ability to interpret, analyse, and apply financial information to business contexts through a structured set exercise. It provides an opportunity to demonstr
This assessment is designed to develop your ability to interpret, analyse, and apply financial information to business contexts through a structured set exercise. It provides an opportunity to demonstrate both theoretical understanding and practical application of key financial management principles using real-world analytical techniques.
You will complete a series of guided tasks that mirror the work of a financial analyst, including interpreting financial statements, calculating and analysing ratios, benchmarking company performance against competitors, making evidence-based strategic recommendations, and proposing a final course of action to the senior management.
The tasks are designed to assess your ability to connect financial data with strategic decisions and to evaluate opportunities and risks affecting business sustainability.
The total word count for both parts will be 2500 words. The title and the reference list are excluded from the word limit.
Your ability to write clearly and concisely is an important academic and professional skill. While there are no automatic penalties for exceeding the word count, your mark will be impacted if your work is overly long or short, as you will not have been able to show sufficient knowledge or the ability to be able to write a clear argument.
For information on extenuating circumstances, additional support, and assessment guidance, please refer to your programme handbook.
Component Details You are a newly appointed financial analyst at a consulting firm. Your team has been asked to review the financial health of one of two potential clients:
Option One EcoFresh Ltd: A food retailer specialising in sustainable, locally sourced products. The company has built a loyal customer base and continues to grow in a competitive retail environment. However, it faces challenges such as rising supply costs, ongoing investments in sustainability initiatives, and maintaining efficient inventory control. To support its next phase of growth, EcoFresh is seeking a £1 million bank loan to fund expansion through new supplier partnerships. Your task is to analyse whether the company is financially ready to take on this investment and advise on the potential risks and benefits. The case study can be found on the module page on Moodle, under the Assignment Information tile.
Option Two Byte Hotels & Restaurants Ltd: A chain of boutique hotels and restaurants across the UK. The company has shown signs of recovery following the pandemic, but continues to face financial pressures from rising costs, staffing shortages, and unpredictable consumer spending patterns. To improve profitability and strengthen financial stability, Byte Hotels is considering a cost restructuring strategy aimed at optimising operations and improving efficiency. Your task is to evaluate the company’s financial position and advise whether this restructuring plan is both necessary and achievable based on your analysis. The case study can be found on the module page on Moodle, under the Assignment Information tile. You are tasked with evaluating your chosen company`s performance between 2023 - 2024 and are to advise the client on the strategic actions they can take based on your findings. Your report will form part of the client briefing.
The report is broken down as follows:
- Financial statement interpretation (LO1) - analyse and interpret your chosen company’s financial statements for 2023 – 2024:
Income statement analysis Balance sheet analysis Cash flow statement analysis. Use this section to provide a narrative summary of your chosen company’s financial health and highlight any significant year-on-year changes.
- Ratio analysis and benchmarking (LO2) - calculate and interpret key ratios under the following sections:
Profitability – gross profit margins, net profit margin, etc Liquidity – current ratio Efficiency – inventory turnover, asset turnover, etc Solvency – debt to equity ratios, etc Once you have completed this, compare your chosen company’s results to a real industry competitor using publicly available data from Yahoo Finance. Analyse and evaluate what these comparisons tell you about your chosen company’s strengths, weaknesses, financial risks, and overall financial health.
- Using the financial analysis you have completed, you will now assess one of the two strategic business decisions outlined below. The specific decision you evaluate is determined by the case study company you chose (LO3)
a) EcoFresh Ltd - seeking a £1 million bank loan to fund expansion through new supplier partnerships.
b) Byte Hotels & Restaurants - considering a cost restructuring strategy aimed at optimising operations and improving efficiency.
Using your analysis, assess whether the company is in a suitable financial position to proceed with the proposed decision, providing a financial justification using relevant ratios and financial evidence.
- Strategic Recommendations and Presentation (LO3)
It’s time to bring together all your evidence from your financial analysis and transform your findings into practical, evidence-based recommendations and present them in a professional management slide deck suitable for a senior management client briefing.
You need to ensure that your presentation slides provide visual clarity; therefore, it is important that you use charts, tables, and bullet points. You should use MS PowerPoint to produce three to four slides which will consolidate your entire financial analysis. Insert the slides into your MS Word document. You are not required to present your slides.
