Securing Higher Grades Costing Your Pocket? Book Your Assignment at The Lowest Price Now!

Analysis & Interpretation Of Financial Statements

tag 0 Download3 Pages 544 Words tag Add in library Click this icon and make it bookmark in your library to refer it later. GOT IT

Questions:

1.Based on the financial reports and other information, prepare an analysis that covers the financial years ending 30 June 2015, 2016 & 2017 concentrating on the following aspects and including consideration of segment information and position in relation to its industry:

Profitability
Liquidity

2.Analyse and interpretation of Cash Flow Statements.

 

Answers:

1.Ratio Analysis

The profitability ratios for the company over the period 2015-2017 are highlighted below.

Based on the above ratios, it is apparent that there has been an improvement in the gross profit margins over the last years. This is on account of various acquisitions which has led to significant growth in the revenue particularly in retail and service along with specialist wholesale segment which is having a positive impact on the gross profits owing to greater profitability. However, the net profit margin after improving in 2016 has remained stagnant in 2017. This is on account of increase in various operating expenses along with jump in administration costs along with interest costs. The jump in administration costs could be related to the related acquisition costs.

The return on assets after showing an improvement in 2016 has dipped in 2017. This is primarily due to the increase in assets of the various acquired businesses which has led to swelling of the total assets. However, on the revenue front, only the six month results have been introduced for certain businesses, which is why the profit does not fully reflect the acquired businesses. Also, the return on equity has significantly improved in FY2017 owing to higher profits generated without much increase in equity. However, in FY2018, there has been a significant jump in the issued capital along with significant decrease in the accumulated losses which has caused the equity to significantly enhance leading to lower ROE.

The liquidity ratios for the company over the period 2015-2017 are highlighted below.

It is apparent from the above current ratios value that there has been a decrease in this ratio from 2015 to 2016. This was on account of a sharp increase in the current liabilities owing to high trade payables and provisions. However, the current ratio improved in 2017 to over 2 which implies that the company does not have any concern of short term liquidity. A similar trend is also seen in acid test ratio. The steep decline in 2016 is on account of steep increase in the inventories witnessed in that year. However, both the ratios remain healthy indicating no short term liquidity crunch.

 

2.Cash flow Analysis

The requisite cash flow analysis is summarised below.

From the above, it is apparent that there is an increasing trend for cash flow from operations. This may be attributed to the acquisitions done by the company in FY2016 and FY2017 which has provided a boost to the net profits of the company and thus led to increased operating cash flows. The cash from investing has shown a jump in 2016 as the cash outflow on investing increased about 25 times. This is on account of the purchase of businesses that the company did in FY2016. A similar trend is also witnessed in FY2017 where owing to acquisitions, the outflow has increased. In order to finance the acquisitions in FY2016 and FY2017, as expected, there has been a significant jump in the financing inflow as money is raised from both debt and equity.

OR

Cite This Work

To export a reference to this article please select a referencing stye below:

My Assignment Help. (2019). Analysis & Interpretation Of Financial Statements. Retrieved from https://myassignmenthelp.com/free-samples/analysis-interpretation-of-financial-statements.

"Analysis & Interpretation Of Financial Statements." My Assignment Help, 2019, https://myassignmenthelp.com/free-samples/analysis-interpretation-of-financial-statements.

My Assignment Help (2019) Analysis & Interpretation Of Financial Statements [Online]. Available from: https://myassignmenthelp.com/free-samples/analysis-interpretation-of-financial-statements
[Accessed 14 December 2019].

My Assignment Help. 'Analysis & Interpretation Of Financial Statements' (My Assignment Help, 2019) <https://myassignmenthelp.com/free-samples/analysis-interpretation-of-financial-statements> accessed 14 December 2019.

My Assignment Help. Analysis & Interpretation Of Financial Statements [Internet]. My Assignment Help. 2019 [cited 14 December 2019]. Available from: https://myassignmenthelp.com/free-samples/analysis-interpretation-of-financial-statements.


MyAssignmenthelp.com boasts a pool of 3000+ experts from different backgrounds, who are solely dedicated to providing premier quality assignment help. Due to the diversity in our expert team, we are capable of providing academic assistance in more than 100 subjects. Some of our popular services include math assignment help, economic assignment help, accounting assignment help, statistics assignment help, law assignment help and more at a reasonable price.

Latest Accounting Samples

HA2032 Corporate And Financial Accounting 8

Download : 0 | Pages : 9

Answer: Introduction Every organization should try and disclose the required terms and conditions to various type of user so that the decision-making process can be carried out by them. In today's world, it has been observed that the principle of disclosure is not being able to fulfil the needs of the financial reporting of users. The environment is divided between two groups of people among which half are satisfied with the information they ...

Read More arrow

HA2032 Corporate And Financial Accounting 7

Download : 0 | Pages : 13

Answer: Introduction The main purpose of this paper is do carry out a research and discuss if the financial accounting and reporting should be regulated or a manager should be allowed to disclose financial accounting information voluntarily (Vernimmen, Quiry, Dallocchio, Le Fur and Salvi 2014, pp. 22). The paper also gives an explanation on how the Australian Accounting Standards Board (AASB) participates in the setting process of global...

Read More arrow

AFA1105 Accounting For Management 3

Download : 0 | Pages : 5

Answer: Company Overview Lantern Hotel Group held a portfolio of hotels and pubs located in Australia and New Zealand. During the recent times, there have been issues on profitability and liquidity front for the company’s assets. As a result, the company has been rejigging the asset portfolio whereby it is selling non-profitable assets. Owing to cash crunch, it exited the New Zealand market in 2013. The sale proceeds were used for Austral...

Read More arrow

HI5017 Managerial Accounting 3

Download : 0 | Pages : 15

Answer: Introduction Measuring the performance of a business is critical in establishing its business progress. In this essence, it is important to note that activity based costing is a key management accounting method that can be deployed to measure the performance of a business entity in real-time (Kennedy and Affleck-Graves, 2001, 33). This is achieved by evaluating the business in terms of the cost associated with each resources and activ...

Read More arrow

ACC3101 Accounting Information Systems

Download : 0 | Pages : 7

Answers: Introduction: A report has been prepared on the xero software and a brief overview of the same has been given. The advantages and disadvantages of using the same as an accounting software has been using the screenshots and how the same is being used in the given business scenario. The second case study is on Mining Support Services (MSC), which is one of the specialist in software designing for the mining industry. Since it has many ...

Read More arrow
Next
watch

Save Time & improve Grades

Just share your requirements and get customized solutions on time.

question
We will use e-mail only for:

arrow Communication regarding your orders

arrow To send you invoices, and other billing info

arrow To provide you with information of offers and other benefits

1,164,011

Orders

4.9/5

Overall Rating

5,051

Experts

Our Amazing Features

delivery

On Time Delivery

Our writers make sure that all orders are submitted, prior to the deadline.

work

Plagiarism Free Work

Using reliable plagiarism detection software, Turnitin.com.We only provide customized 100 percent original papers.

time

24 X 7 Live Help

Feel free to contact our assignment writing services any time via phone, email or live chat.

subject

Services For All Subjects

Our writers can provide you professional writing assistance on any subject at any level.

price

Best Price Guarantee

Our best price guarantee ensures that the features we offer cannot be matched by any of the competitors.

Our Experts

Assignment writing guide
student rating student rating student rating student rating student rating 5/5

1896 Order Completed

95% Response Time

Herman Berens

MSc in Psychology

London, United Kingdom

Hire Me
Assignment writing guide
student rating student rating student rating student rating student rating 5/5

1265 Order Completed

97% Response Time

James Cook

Masters in Management

Wellington, New Zealand

Hire Me
Assignment writing guide
student rating student rating student rating student rating student rating 5/5

2279 Order Completed

97% Response Time

Zachary Perez

PhD in Computer Science and Information System

Washington, United States

Hire Me
Assignment writing guide
student rating student rating student rating student rating student rating 5/5

154 Order Completed

97% Response Time

Harold Alderete

PhD in Economics

London, United Kingdom

Hire Me

FREE Tools

plagiarism

Plagiarism Checker

Get all your documents checked for plagiarism or duplicacy with us.

essay

Essay Typer

Get different kinds of essays typed in minutes with clicks.

edit

GPA Calculator

Calculate your semester grades and cumulative GPa with our GPA Calculator.

referencing

Chemical Equation Balancer

Balance any chemical equation in minutes just by entering the formula.

calculator

Word Counter & Page Calculator

Calculate the number of words and number of pages of all your academic documents.

Refer Just 5 Friends to Earn More than $2000

Check your estimated earning as per your ability

1

1

1

Your Approx Earning

Live Review

Our Mission Client Satisfaction

thank you again, it is a good work, everything is perfect. I am very happy. It is not the first time and I know that I can count on you.

flag

User Id: 265909 - 14 Dec 2019

Australia

student rating student rating student rating student rating student rating

Gave them a small amount of time and they pulled through for me. Wonderful.Gave them a small amount of time and they pulled through for me. Wonderful.

flag

User Id: 357602 - 14 Dec 2019

Australia

student rating student rating student rating student rating student rating

It was very good work and I got an 85% on it. Thank you very much for your help and fast response

flag

User Id: 348363 - 14 Dec 2019

Australia

student rating student rating student rating student rating student rating

Was very good work and I get a full mark on it. Thank you very much for your help

flag

User Id: 348363 - 14 Dec 2019

Australia

student rating student rating student rating student rating student rating