Brief description

Assume you are a Chartered Financial Analyst $($CFA$)$ working in the world$$s top investment management firm, which aims $$to conduct the business in a socially responsible and ethical manner by respecting the law, supporting universal human rights, protecting the environment and benefiting the local and regional communities$$ To construct an equity portfolio for a socially responsible client, your fund manager requested you to prepare a report on the $$Analysis of the financial and non$-$financial performance of a public limited firm$.$

For commonwealth bank using data for the past $3$ years

Accounting & Market Factors

To analyse the accounting and stock market performance of the firm from the perspective of existing and prospective shareholders

Accounting and financial considerations

$$ Select the key ratios and value drivers $($e$.$g$.,$ sales growth, profit margins, cost of equity capital, liquidity, solvency, leverage$)$ and comment on the firm$$s financial performance. How has the firm performed over time $($e$.$g$.,$ past $5$ years$)?$ How does the firm perform compared to the industry, or peers $($e$.$g$.,$ main competitor$)?$ Identify any social or environmental controversies which might have hampered the firm$$s financial performance.

Stock market considerations

$$ How does this firm interact with financial markets? How do markets get information about the firm?

$$ Prepare the graph and discuss the recent performance of the firm$$s share. How does it perform over time $($e$.$g$.,$ past $5$ years$)$ compared to the market, industry, or peer $($e$.$g$.,$ main competitor$)?$ Identify any social or environmental controversies which have affected the share performance of the firm. Alternatively, how has the share price reacted to any social or environmental controversies the firm has faced?

$$ Is the firm included in any ESG$-$based equity index? If yes, how has it performed compared to the overall index?

$$ Trading and liquidity: How widely held and traded is the share? How much trading volume is there in this share?

$$ Analyst following: Does it appear that many analysts follow the firm? What do they think about the share $($buy$,$ sell, or hold recommendation$)?$ Does the analyst following the firm consider environmental or social factors in their share valuation methodology?

Based on your analyses of the above issues, you are expected to infer whether the firm is well$-$managed or poorly managed $($socially responsible or irresponsible; financially viable or not viable$)$ and provide specific recommendations to the firm's management and equity investors.