Academic Year 2022/23
ASSIGNMENT BRIEF: CE5012-CE5514 Risk and Financial Management
The following brief is the assignment for the CE5514/5012 module for 2022/23. It is marked out of 100% and 30% of these marks will be consolidated with the examination marks for complete module assessment.
The student is invited to work alone (no joint work) and to try to restrict the word count to c2000 words not including appendices or tables.
Using internet searches, obtain the financial reports from FIVE quoted companies that are competitors in the same sector of the construction industry. Examples of sectors include: domestic housing, commercial offices, transport infrastructure such as bridges etc. The reports should all refer to the same or overlapping periods of time and should be the overall (that is, consolidated) group accounts. The accounts should not be older than a year ending in 2020. Include the summary financial data obtained in an appendix, and present the assignment as a report. Ensure that the following questions are answered in your report:
a) . Choose THREE appropriate Financial Analysis ratios that describe profitability, return on capital and gearing and perform an analysis on the selected company accounts. Present your answers clearly in table form, and explain briefly how each company has performed based on the ratios.
b) . Describe briefly the sector of the construction industry that you have selected. Produce a representative average sector performance from the ratios calculated in (a) for the five selected companies. Comment on how representative this average might be for the sector and whether your ratios reflect the reported performance of this sector. Use internet research to provide supporting comments for your assessment.
c) . Choose one more quoted company from a different sector of the construction industry and calculate the same ratios as in (a) for this company. Comment on any differences between your average in (b) and this additional company, including your assessment of whether any differences should be expected based on the sector types.