财务报表分析试卷.pdf

BEAM032 UNIVERSITY OF EXETER BUSINESS SCHOOL JANUARY 2010 INVESTMENT ANALYSIS I Module Convenor Dr Christina Dargenidou Duration TWO HOURS Answer ONE question from Section A and TWO questions from Section B Use a separate answer booklet for each section 2 Approved calculators are permitted This is a closed note paper 2 SECTION A You must answer EITHER question 1 OR question 2 in this section Question 1 BEST CARS S A The Group s principal activity is developing manufacturing and selling a range of cars and motorcycles and providing related financial services e g leasing and insurance services to customers and dealers The Group s main brands include up market and well established brand names The Group has operations globally a Calculate the basic financial ratios required to determine the financial performance and position of the company for the years 2008 and 2007 You are expected to estimate the following ratios Performance Return On Equity and its decomposition to Net Profit Margin Asset Turnover Return on Assets and Financial Leverage efficiency Days accounts receivable Days inventory Days accounts payable Property Plant liquidity Current ratio Quick ratio Cash ratio Cash cycle and solvency Debt to equity and Interest coverage 75 marks b Interpret the ratios you have calculated in part a and comment upon the financial position and performance of the company as well as issues that you would like to investigate further You are expected to use the information given to you in a together with the benchmark ratios provided below 75 marks Total 150 marks 3 BALANCE SHEET INFORMATION FOR BEST CARS SA 200820072006 Property Plant and Equipment net 30 81628 12124 927 Investments000 Other non current assets 30 77427 78124 832 Total non current assets 61 59055 90249 759 Cash and Equivalents 10 7604 3523 370 Receivables net 20 09720 18017 857 Inventories 7 2907 3496 794 Other current assets483494522 Total current assets 38 63032 37528 543 Total assets100 22088 27778 302 Short term debt efficiency Days accounts receivable Days inventory Days accounts payable Property Plant liquidity Current ratio Quick ratio Cash ratio Cash cycle and solvency Debt to equity and Interest coverage 75 marks b Interpret the ratios you have calculated in part a and comment upon the financial position and performance of the company You are expected to use the information given to you in a together with the benchmark ratios provided below 75 marks Total 150 marks 7 BALANCE SHEET INFORMATION FOR BEST FOOD PLC 200820072006 Property Plant and Equipment net 7 8217 4247 176 Investments000 Other non current assets 642969460 Total non current assets 8 4638 3937 636 Cash and Equivalents 6867231 128 Receivables net 13711595 Inventories 689681590 Other current assets58203127 Total current assets 1 5701 7221 940 Total assets10 03310 1159 576 Short term debt in your discussion refer also to the problems arising from the treatment of R D expenses according to IAS 38 Total 75 marks Question 6 You are very impressed by the performance of Neuchatel a Swiss chocolate manufacturer which has exhibited an ROE of 73 in 2008 and 91 in 2007 Neuchatel s data are provided below You wish to investigate the drivers and the sustainability of this exceptional performance and you apply both a simple DUPONT ROE decomposition into Net profit margin Asset turnover and Financial leverage 15 marks an advanced DUPONT ROE decomposition into Net operating profit margin Net operating asset turnover Spread and Net Financial leverage taking into account the operating and financing activities of the firm 20 marks Discuss the insights provided by the advanced ROE decomposition compared with the inference from the simple ROE decomposition 40 marks Total 75 marks 2008 2007 2006 Sales 7 466 7 368 Net Profit 6 290 4 176 NOPAT 1 337 1 688 Net Interest Expense After Tax Income if