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Provide an executive summary which will include overview of subject matter, methods of analysis, findings and recommendations.
Use the latest annual report. The group will need to review the major sections of this report in order to be familiar with the content of each of the financial statements and appropriate footnotes.
Review the balance sheet of the company and indicate the total amount of the following:
a) Current assets
b) Non-current assets
c) Current liabilities
d) Non-current liabilities
e) Stockholder's equity
Compare the above figures with the previous year and compute the percentage increase or decrease and comment on the comparative financial condition of the company.
Review the income statement and indicate the following:
a) Total (operating) revenues
b) Cost of Goods Sold (if relevant)
c) Total expenses (before income taxes)
d) Any non-operating (or extraordinary) gains and losses
e) Earnings per common share
Compare the above figures with the previous year and compute the percentage increase or decrease and comment on the comparative financial operation of the company.
Review the statement of cash flows for the most recent year and indicate the following:
a) Net cash inflow (outflow) from operating activities
b) Net cash inflow (outflow) from financing activities
c) Net cash inflow (outflow) from investing activities
d) Net increase (decrease) in cash during the year
Analyse the Cash Flow Statements for the last 2 years and comment on the cash position of the company.
Review the stockholders’ equity section in your chosen company’s most recent year- end balance sheet and compare that with the previous year-end balance sheet. Compare percentage increase or decrease.
List the stockholders’ equity account balances and number of outstanding shares from these two balance sheets and compute the increase or decrease for each during this past year.
There are many ways through which the data can be analyzed and the company's financial analysis can be reported. A report of financial analysis can be made through
- Financial ratio analysis
- Comparison of data for various year's
- Percentage and trend analysis
In this report, financial analysis has been done using trend analysis and percentage horizontal analysis method. The data for such analysis has been derived from the data analysis and from various sites and Australian stock exchange.
The recommendations and findings are recorded as a conclusion.
Analytical study of the company
The financial ratio of the company helps to evaluate the position of the company as to the past and future. The data helps to compare the company's performance to its past data and also predict the future, it helps to compare its data to the industry values and thus helps in the evaluation of the company's worth and profitability.
Current Assets, Current Liabilities and Current Ratio
Current assets are those assets of the company which are in liquid and available for day to day affairs. These assets include cash, cash equivalents, inventory and other receivables, which are available to be used by the company immediately.
- The total current asset value of the year 2015 was 47,038,954 ($)
- The total current asset value of the year 2014 was 30,024,365 ($)
- The total current liabilities value of the year 2015 was 30,617,919 ($)
- The total current liabilities value of the year 2014 was 13,283,147 ($)
The company has by par enlarged and an increased value of the current assets over the last financial year and it depicts a strong financial position of the company.
The current asset ratio also called as the liquidity ratios is a value that depicts out the position of the company to meet its current liabilities with its current assets. The higher the value, the better it is considered. It is a ratio which depicts the efficiency of the company to turn its productivity to cash.
The company has a current ratio of 1.67 in 2015 and the same was 2.26 in 2014. The company has a very good current ratio. The industry average ratio is 1.6 and the company has a current ratio higher than its industry average. It depicts the great operating ability of the company and a good future and a strong financial position.