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1. • CommentAuthorlucky_indian
   • CommentTimeJul 2nd 2007

    
   Hi, i am a accounting student in New Zealand and a i have an assignment. I have to analyze a company's annual report. I have selected Contact Energy has to be from NZ. Here are the instuctions:
   Sandy Morrison has recently been left a $50,000 inheritance by an elderly aunt. She would like to invest the funds in shares in a NZ publicly listed Company. A friend as recommended Contact Energy as a good investment option because it has expanded recently and is showing excellent growth potential.
   Sandy has come to you for advice. You are required to prepare a written report which analyses and interprets the company’s annual financial statements and other relevant information and provide a recommendation to Sandy as to whether or not she should buy shares in Contact Energy.
   
   TASK INSTRUCTIONS
   Your report should contain:
   1. The completed table of Analysis Measures (ratios and percentages) for two years. Attach the table as an appendix to your report. Note: calculations are not required where you can extract the figures from the annual report.
   
   2. (a)Your report should include an interpretation of Contact Energy's Annual Report under the following headings:
   a. Profitability/Earning Capacity.
   b. Liquidity.
   c. Financial stability.
   d. Market analysis.
   e. Cash Management.
   
   (b)Valid interpretations should include:
   • Explaining the analysis measures calculated.
   • Identifying and explaining reasons for trends in Contact Energy's financial performance, financial position and cash flow.
   • Identifying and explaining strengths and/or weaknesses.
   • Identifying an explaining Cooper Clothing Ltd’s current business strategy and its impact on current and future returns
   • Interpret the Statement of Cash Flows, in terms of Operating Activities, Financing Activities and Investing Activities and comment on the entity’s over all cash position.
   
   In making your interpretations you should use and interpret:
   • financial and/or non financial information contained in the annual report
   as well as
   • other relevant financial and/or non financial information not contained in the annual report to help explain the reasons for the trends and strengths and weaknesses.
   
   3. A recommendation to Sandy as to whether she should buy the shares or not. Your recommendation should give Sandy valid reasons (explanations) for the recommendation you make.
   
   Analysis measures may be selected from, but are not limited to:
   • percentage change
   • comparison of dollar amounts
   • mark-up/gross profit percentages
   • expense percentages
   • net profit/surplus (after tax) percentage
   • return on equity
   • return on total assets, using net profit/surplus before interest and tax
   • dividends per share
   • earnings per share
   • price earnings ratio
   • dividend yield
   • current ratio
   • liquid ratio
   • equity ratio
   • gearing ratio (debt to equity)
   • times interest earned
   • other relevant analysis measures that relate to the annual report, eg Inventory as a percentage of current assets
   analysis of non-financial information contained in the annual report.
   Also:
   Times interest
   Earned (Interest cover)
   Net Assets per share
   Earnings per Share
   (c.p.s.)
   
   Dividends per
   Share (c.p.s.)
   
   Dividend yield
   Price Earnings Ratio
   
   A/R Collection Period
   
   Interest Cover
   
   Interest Cost %
   
   So guys please help me. I can only do some of them. The annual report is very complex according to me. I have 3 weeks to do this.
   
   Please help
   
   For Contact Energy Annual report go to:
   http://www.contactenergy.co.nz/web/view?page=/contentiw/pages/shared/annualreports&vert=in&onlineMode=oh#a2006
   and download the 2006 full report.
2. • CommentAuthorabril
   • CommentTimeJul 2nd 2007 edited

    
   on a second thought.. maybe not.
3. • CommentAuthorabril
   • CommentTimeJul 7th 2007

    
   i could help you with this one but it will take a while to answer this and the downloading of the statements are so darn slow. analysis and recomemdations are easy to do once you've computed the ratios and everything.
4. • CommentAuthorlucky_indian
   • CommentTimeJul 9th 2007

    
   The point is i can't do the ratios, I can do a few but the majority of them i can't do that's why i need your help. Please help me
5. • CommentAuthorabril
   • CommentTimeJul 10th 2007

    
   here's my email aprilles0ler@hotmail.com
   send me the ratios you have trouble with and then i'll email back the formula and the use of each ratios..
   once you've done the ratios, send the answers back to me and i'll help you with interpreting and recommendations and everything. i kind of had a peek on the financial statements and it looks a bit complicated so you'll have to, if you like, rewrite it in a manner that it wont look complicated but that is just a suggestion.
   
   come on honey dont panic lol..
   
   :)