RECENT ASSIGNMENT

1
FIN201 “Financial Management”
CASE STUDY – Worth 30 Marks & Due Date Sunday 16 May at 5pm
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 solvency for both years
(and both banks) using financial ratios. (Attach financial statements) (15 Marks)
1 https://accr.org.au/politics/nab/.
2 https://www.relbanks.com/worlds-top-banks/assets-2016.
Based on financial statements obtained, comment on the financial profitability and financial
position of NAB and the comparative bank for both years and explain how banks that manage
current assets well may establish competitive advantage? (650 words) (6.5 Mark)
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)
(6.5 Mark)
(2 marks for number of words and direct quotes)