Financial Statement Analysis of A2 Milk Company

RUNNING HEAD: CORPORATE FINANCE
Financial statement analysis

Corporate finance 2
Contents
Introduction......................................................................................................................................2
Description of the company.............................................................................................................2
Ownership and governance structure...............................................................................................3
Main substantial shareholders......................................................................................................3
Main people involved in the firm governance.............................................................................3
Calculation of key ratios..................................................................................................................4
Graph and share price movements...................................................................................................5
Significant announcements..............................................................................................................6
Conclusion.......................................................................................................................................7
References........................................................................................................................................8

Corporate finance 3
Introduction
The report explains the overall analysis of a New Zealand based company named as The A2
Milk Company. It provides a brief overview of the firm highlighting its core activities and the
market in which it operates. Furthermore, the report also discusses the structure of ownership and
governance including its CEO, board of directors and substantial shareholders. In the later part,
the key ratios of the company are calculated which includes ROE, ROA and Debt ratio followed
by the explanation of the concept of equity multiplier. The report also discusses the movements
in the share price of A2 Milk and the same has been compared to the all ordinaries index. In the
last, the significant announcements made by the firm are made followed by a conclusion in the
end.
Description of the company
The A2 Milk Company Limited is a corporation which is listed on ASX 200 and is engaged in
the commercialization of intellectual property related to the company and distribution of the A2
brand milk. Previously, it was known as A2 Corporation Limited and was found in 2000. The
firm also owns the intellectual property that allows the identification of cattle for producing A1
protein free milk products. The company operates through four segments that include Australia
and New Zealand, United Kingdom, USA, China and Asia. The sale of milk, cream, milk
powder, ice cream and other related products is operated through Australia and New Zealand
segment. The Asian segment and China includes sale of infant formula, whole milk powder and
the division is also responsible for the supply chain of infant formula from NZ to all the markets
(Reuters. 2018).