Advanced Financial Statement Analysis - Leon's vs the Brick

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  • Topic: Balance sheet, Financial ratio, Financial ratios
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  • Published : January 29, 2012
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Advanced Financial Statement Analysis
Assignment #1
Comprehensive Analysis of Financial Performance

Leon’s Furniture Limited and The Brick Income Fund

Comprehensive Analysis of Financial Performance
Assignment #1 - Leon’s versus The Brick

TABLE OF CONTENTS

Page # Table of Contents …. Abstract ….. Report Outline ….. Introduction ….. Ratios – Financial Analysis ….. Summary ….. Bibliography ….. Appendices (A – J) ….. 2 3 4 5 6 23 25 26

Advanced Financial Statement Analysis

Comprehensive Analysis of Financial Performance
Assignment #1 - Leon’s versus The Brick

Abstract
This research paper is prepared for purposes of assessing financial condition as well as overall operating performance of two same sector entities. The subject entities (Leon’s Furniture Limited and The Brick Group Income Fund) were assigned by the professor and students were instructed to review historical financial data for a period not less than 5 years from the date of the last filed audited financial statements.

There were no underlying expectations or assumptions that would have influenced the assessment/evaluation criteria of either organization. In accordance with curriculum content reviewed during the first 5-6 weeks of study, students were directed to ensure that completion of the comprehensive financial analysis incorporated those financial ratios that would inform the reader as to overall financial health, on a comparative basis, for the two entities.

Students were encouraged to review all information available through the traditional channels, including: annual reports, audited financial statements, annual information forms as well as management representations made therein as part of Management Discussion and Analysis disclosure.

Advanced Financial Statement Analysis

Comprehensive Analysis of Financial Performance
Assignment #1 - Leon’s versus The Brick

Report Outline
1. 2. Introduction Ratios – Financial Analysis  Liquidity  Capital Structure and Solvency  Profitability and Operating Performance  Asset Utilization / Efficiency  Market Measures 3. 4. Summary Appendices A. Leon’s - Balance Sheet B. Leon’s - Statement of Income and Retained Earnings o Including Financial Ratio Analysis C. Leon’s - Statement of Cash Flows D. The Brick – Balance Sheet E. The Brick – Statement of (Loss) Income and Unitholders’s Equity o Including Financial Ratio Analysis F. The Brick – Statement of Cash Flows G. Leon’s – Balance Sheet “common sized” H. Leon’s – Statement of Income and RE “common sized” I. The Brick – Balance Sheet “common sized”

J. The Brick - Statement of (Loss) Income and UE “common sized”

Advanced Financial Statement Analysis

Comprehensive Analysis of Financial Performance
Assignment #1 - Leon’s versus The Brick

1.

Introduction

Financial analysis is conducted, relied upon and required for such a wide array of activities. Whether for evaluation of an organization’s fiscal health or operating performance, internal users, suppliers, lenders, investors and/or regulators (TSX, CICA, government legislation, etc.) utilize financial analysis to support timely decision making requirements as such relate to business operations, social policy, legislation, etc...

Through evaluation and interpretation of financial data, management can assess performance of employees, efficiency of operations, feasibility of future business opportunities and the list goes on and on. From the perspective of the external stakeholder, financial analysis is also relied upon for decision making purposes, however such usually relate to engagement of business activities such as investments and/or credit-worthiness.

As a financial analyst, data used to conduct financial analysis can be sought from a variety of sources. Of course, the primary source of which is the entity being analyzed. Whether accessible on the company website or through regulated filing networks, management is required to provide extensive...
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