KOM002FBL MBA General Management FT-May 2025 assignment

Coventry University

IBA Erhvervsakademi Kolding

Course                                                  :               KOM002FBL MBA General Management FT

Module Code                                    :               KOL7001EF

Module Title                                     :               Financial Statement Analysis and Decision Making

 Module Leader                                                :               Christian H. Bertelsen

Assessment Board                          :               June, 2025

Time allowed                                    :               8 weeks

Credits for this component         :               10 credits)

Assessment Information

 Intended Module Learning Outcomes

The intended learning outcomes are that on completion of this module the student should be able to:

1. Critically evaluate the performance of a company using various financial analysis tools.
2. Analyze and critically evaluate different patterns of cost behavior and apply cost volume-profit analysis to business decisions.
3. Apply the Discounted Cash Flow (DCF) and other techniques to capital investment decisions.
4. Evaluate the performance of an organization, business units or divisions using financial and nonfinancial measures.

Intended Learning Outcomes for the CW:

On completion of this coursework, the student should be able to evaluate the performance of a company using various financial analysis tools as stated in the module plan (learning outcome 1). In learning outcome 1 the following topics are covered:

• Introduction to the financial statements: Understanding the various financial statements (Income Statement, Balance Sheet, Cash Flow Statement, and the Statement of Shareholders’ equity) and how they relate to each other; analysis for decision making
• Financial analysis tools: Trend analysis, common size analysis, ratio analysis and industry analysis.

 The Group assignment

This assignment will be based on real data from the annual financial reports of Pandora A/S for the financial years 2021, 2022, and 2023, which are available on the company’s website https://dk.pandora.net

For your analysis, you will have to consult / use at least three different sources, which could be articles from accounting journals, financial analyses or academic notes of your own choice. These all have to be relevant to be accepted as fulfilling the academic requirements.

Accepted group sizes: 3-4 students, but less than 3 members is not a recommended size, due to the large amount of information that needs to be processed by the groups in this coursework.

Required content:

Imagine that your group of financial analysts has been requested by a large company to prepare an independent analysis of the financial situations of Pandora A/S. The company wants your independent opinion before deciding whether to invest in Pandora A/S. The company’s CFO therefore requires a financial analysis of the perspectives of purchasing stock in the company. The financial perspectives are central to this assignment, but financial aspects can also include evaluation of future prospects, given the companys’ position in its markets.

A brief explanation (or definition) of the employed key financial ratios and their meaning and relevance is required in your report, as definitions may vary.

The primary content of your report should include, for the years 2021, 2022, and 2023:

1. Analysis and comments on the performance of the company (profitability ratios, efficiency, as well as investment ratios 1). Are the market values of the company reasonable? Substantiate the group opinion, assessing the risks and opportunities for the company when investing in Pandora A/S.
2. Analysis and comments on the financial position (with emphasis on the observed developments in liquidity and financial gearing) of the company at the year’s end. Do not just present numbers, but try to explain the causes of the changes you find, e.g. did the company obtain extra funding in the period via stock issues, loans, or from good orders / breakthroughs?
3. Discussion of the development in the share price of Pandora A/S in 2023 and it’s triggers. Has the company seen a better stock performance than the C25 stock price index in general? (remember to include the effect of dividends). Again remember to add all your comments and not only present numbers.
4. Your recommendations to the company regarding its plan of investment in shares in the company, based on the financial analysis you conducted. You are not required to explain the valuation issues in depth, just sustain your recommendation.
5. It is very important that you analyze their sustainability and also how far they are with the fulfilment of ESG.
6. It is very important that you arrange all calculations of the various ratios in Excel sheet, and then you can make all your comments to the various ratios in the Word document.

You are required to state any relevant assumptions you make throughout the assignment.

Criteria for Assessment

Relevance and accuracy of the profitability, efficiency, and investment analysis. Your group comments are very important. 25 %

Relevance and accuracy of the analysis of financial position, such as liquidity and financial gearing. Your group comments are very important. 25 %

Relevance and accuracy of the development in the share prices included comparison with the general C25 stock price index. Your comments to the sustainability and ESG fulfilment. 25%

Appropriateness and insight of your comments to the above mentioned 3 areas included a strong conclusion and recommendation. 20 %

Structure, layout and presentation. 5 %

Word Count

The word count is 4,000.

The assessment must be submitted by the 14th of May, 2025 – 12.00 am/noon via Wiseflow.

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