Write a report based on the provided context scenario, financial information and ratios. Conduct a peer analysis of a competitor company of your choosing and the given case study company. Consider all relevant financial principles, concepts and theories. Conduct the necessary financial analysis using appropriate techniques, tools and frameworks. Make decisions and recommendations based on the analysis and consider ethical implications and limitations.

Learning Outcomes

Demonstrate understanding of core contemporary financial management theory, techniques and practice.

Critically evaluate and effectively communicate recommendations to address financial management issues.

Apply financial management theory and techniques to professional practice in an ethical manner.

Task

Context

You are part of the management team of Amazing Lounge Pty Ltd (AL Pty Ltd). AL Pty Ltd is a private company specialising in the retailing of high-end home furniture. During the annual strategic review for 2021, a key focus is on analysing the financial performance of the company and mapping its growth pathway for the next 5 years. Financial information and ratios for the past 5 years have been calculated and provided to the management team.

The company has been investing substantially in capital projects and building its stock in the last few years. The Vice President (VP) of Operations is very keen to keep increasing the stock level as it provides a wide range of goods available for sale, and to continue spending on capital by opening new stores (the company has limited online presence to-date).