The main task of a financial analyst is to perform an extensive analysis of financial statements that is used in various aspects of financial decision-making in business. A business growing and extending internally and globally are depend strongly on making the right decision that hinge on how the financial information are analysed and interpreted in both internal and external financial decision contexts.
In Australia, entities are becoming larger, more diversified and multinational. For example, National Australia Bank (NAB) is one of the four largest financial institutions in Australia in terms of market capitalisation, earnings and customers.1 In addition, according to the Banks around the world website,2 NAB was ranked 53th largest bank in the world as measured by total assets in September 2016.The National Australia Bank (NAB) and its reported profit and total assets for the year 1996 compared to 2016.
Year | Reported Profit | Total Assets |
1996 | $2.1 Billion | $174 Billion |
2016 | $3.5 Billion | $738 Billion |
As a financial analysist, you required to:
1) Obtain recent financial reports for The National Australia Bank (NAB) and any other bank operates in Australia for a minimum of 2 consecutive years. Summarize the net profit achieved for years selected and evaluate the profitability, financial liquidity and capital structure for both years (and both banks) using financial ratios. (Attach financial statements)
1 https://accr.org.au/politics/nab/.
2. https://www.relbanks.com/worlds-top-banks/assets-2016.
2) Based on financial statements obtained, comment on the financial liquidity and capital structure of NAB and the comparative bank for both years and explain how banks that manage current assets well may establish competitive advantage? (650 words)
3) Write a report to advise the manager of NAB to make Investment decisions based on the results of point 1 and 2, and common investment appraisal techniques that may be applies for investment decision making activity for domestic and international investment. (650 words)