UNIVERSITI UTARA MALAYSIA

COLLEGE OF BUSINESS
School of Economics, Finance and Banking

Financial Modelling BWFF3053

Group Project
You are required to compute and analyse a financially unhealthyi BURSA Malaysia listed
company, which must show the following computations:
1.

Financial statement analysis (ratios) for the last 5 years

2.

Share price returns

3.

Altman Z-score for the last 5 years

4.

Analysis and recommendation for actions to be taken should be based

on:
i. Financial statement analysis of the company direct analysis (e.g. cash-flow
analysis, peers comparison), ratio analysis (including credit worthiness).
ii. Share price analysis share price returns, riskiness (volatility (standard
deviation and beta)
iii. Excel Solver results of Altman Z-score of the final years financial statements.
The recommendation should be gradual improvements in the span of 5 yearperiod. [You have to provide pro-forma financial statements for that 5-year
improvement measures]

Using the information above, prepare a report of your analysis which consists of:
i.
ii.

iii.
iv.
v.
vi.

Table of contents
Introduction
a. State the problem statement
b. Research question
c. Research objective
d. Contents in following chapters
Literatures review
Include relevant theories and models only
Methodology
a. Show all computations involved
b. Description of data
Findings
[Computation results to be shown in tables and figures]
Analysis

vii.

Conclusions and recommendations.

The data
1. Financial statements of the company
2. Share price data
3. Financial statements of peer companies (At least 3 companies) for comparison
purposes [you have to compute average ratios and average Altman Z-scores of
those companies]
4. All data could be retrieved from Thomson Reuters Eikon at the Trading Room.
Important notes:
Ensure that you have:
i.
ii.

Answered all parts of the question in sufficient depth.

Answered the precise question as required marks will not be awarded for

iii.
iv.

irrelevant material.
Correctly referenced all sources shown on the reference list in your report.
Checked your word count to ensure it is not too low as this might indicate that
you are not answering in sufficient depth. A word count that is too high may lead

v.

to lack of focus.
Attach cd of the data and your computations.

i
ii.
iii.
iv.

Unhealthy companies could be decided upon:3 or more years of straight loses

3 or more years of illiquid cash-flows (current ratio or acid test ratio)
3 or more years of poor Altman z-scores
3 or more years of poor stock price performance, however choosing based on this criteria alone cannot fully
justify the unhealthy situation of the company