What is JET2 Task 5?
• Task 5 is like a ‘capstone’ task for the entire JET2 performance assessment • The task is based on elements within the first four tasks in JET2 and requires additional critical thinking
• It is suggested that Tasks 1 – 4 be completed first.
• Help Documents and discussion about the course are posted in the MBA
Financial Analysis Learning
• A Study Session is held weekly for
Task 5 students. Check community for times, numbers and links to webinar.
• This powerpoint is posted on the community for printing off.
Requirements for JET2
• Five level task: 0 - Unsatisfactory to 4 - Highly
Competent. Must score 3 or higher in all elements to pass the task.
• All eleven rubric elements must be completed and submitted to TaskStream in order to pass
• There are two basic presentations. They can be delivered in report format or as a powerpoint presentation, singly or together.
• All of the rubric elements must be discussed with adequate detail in order to pass.
• This is a presentation to a banker who the company wants a loan from and is a targeted financial statement analysis.
• This is NOT a sales job. You are presenting the facts only regardless of how good or bad they might be.
• This is a focused financial analysis and everything you talk about should be restricted to information that you think will be of use to the banker • The banker is NOT interested in lots of detail, but only in the areas that will affect the company’s ability to pay.
A1. Key Points – This is analogous to the Horizontal,
Vertical and Trend Analysis in Task 1, but restricted to accounts that the banker is interested in.
– The banker is concerned about Profitability, Liquidity and
– Don’t use ratios since you’ll be talking about them in A3.
– State the line item, provide a status, describe why the line item is important to the banker.
A2. Risks – Put yourself into the shoes of the banker and define risks that a banker might be concerned about in looking at Custom Snowboards’ financial statements and how the company can mitigate them.
– Key Thought: What is going to give the banker nightmares?
What worries the banker? These are NOT internal control risks, but risks associated with poor performance of the company. – You’ll need three or so risks. You can base them on line items that you discus in A1. e.g. Declining Sales could be a risk.
– You might think of writing down the risks and how CS will work to mitigate on two sides of a piece of paper to make sure you’ve got both the risks and the mitigations included with you answer.
A3. Ratio Analysis – Discuss the key ratios that a banker will be most interested to detect the company’s ability to pay the interest payments and the loan principal. Useful tab: Horizontal Analysis – ratio section.
Ratios should address Profitability, Solvency and Liquidity
What is the ratio?
What is the current status of the ratio (like Task 1)
Why is it important to the banker and the company’s ability to pay? CEO Presentation
Bring the Board Up to Speed
– B1, B1a, and B2 are questions that follow an informational discussion with the Board of Directors.
– This is another targeted financial analysis to give the Board an idea of how the company has performed in the past three years.
– Do not contemplate the European expansion. CEO Presentation
– B1. Historical Analysis – This analysis is more broad than the Key
Points answer in the CFO presentation, because the Board is interested in more aspects of the company and ‘how we got here’ kind of information
• Show selected accounts – Year 12 to Year 13 to
• Useful tabs: Horizontal Analysis, Vertical Analysis
– B1a. Future Performance – The