Investment Analysis Report: CME Group Berhad’s Financial Performance and Position

Question:

As an investor, you are trying to look for a good publicly listed company to invest in. Therefore, you plan to take a look at the company’s (CME Group Berhad) financial statement before deciding whether to invest in the company. You are required to download. the latest annual report of a company listed in Bursa Malaysia (www.bursamalaysia.com) and then prepare a report. Your report must contain the following items:

(a) Identify and explain the nature of business conducted by the company.
(2 marks)

(b) Identify any TWO (2) stakeholders/users that will use the information contained in the financial statement for decision-making. Briefly describe the decision(s) that would be made by the mentioned stakeholders, respectively.
(2 marks)

(c) Analyze the company performance from the Statement of Profit or Loss (SOPL) and financial position from the Statement of Financial Position (SOFP).

(i) Calculate the changes by using the horizontal method for both SOPL and SOFP (refer to slide guidelines). You may use a font size of 10 for this table.
(4 marks)

(ii) Choose any SIX (6) components, THREE (3) each from SOPL and SOFP, respectively (3) from SOPL and 3 from SOFP, that you want to further analyze and give comments.
(24 marks)

You may include general comments such as:

• increased/decreased as compared to last year
• Reasons of the decrease and increase
• charts to further explain the information

(d) Discuss your decision as to whether to invest in the company, based on the analysis made. You are required to provide three (3) relevant reasons to support your decision. Reasons must be from the analysis you made, and other relevant sources can be included. (Your creativity in supporting your decision from external sources such as internet, magazines, and newspapers would be rewarded more marks.) (15 marks)

(e) Formatting (3 marks)

Answer

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