Accounting and Finance for Managers Analysis 2022

Accounting and Finance for managers 1
Accounting and Finance for managers

Accounting and Finance for managers
Executive summary
Scentre Group Limited is one of the core companies in the area of property management,
designing and construction. In this report a detailed analysis of the company has been undertaken
to analyze the financial performance of the business. In order to analyze the financial
performance of any business, there are several techniques that are required to be undertaken to
get in-depth information. Further, ratio analysis techniques have been used to evaluate the how
well the companies have performed on the basis of previous year and against the competitors.
Each category of ratios has been ascertained to be aware of each department. The techniques foe
evaluation such as horizontal and vertical analysis has been used to record the differences
between the items of the income statement and balance sheet to understand the area of variance if
any. In order to improve the financial performance following recommendations and conclusions
are also provided. These strategies could help the company lift up its position.

Accounting and Finance for managers
Contents
Introduction......................................................................................................................................3
Ratio analysis...................................................................................................................................3
Profitability..................................................................................................................................4
Liquidity.......................................................................................................................................4
Solvency.......................................................................................................................................5
Efficiency.....................................................................................................................................6
Market Performance.....................................................................................................................6
Competitor analysis.........................................................................................................................7
Horizontal Analysis.........................................................................................................................7
Vertical Analysis.............................................................................................................................9
Recommendations and Conclusion................................................................................................12
References......................................................................................................................................13
Appendix 1.....................................................................................................................................15

Accounting and Finance for managers
Introduction
Scentre Group Limited is one of the Australian flagships, commonly known as a
shopping Centre having features with retail destinations which is currently operating under the
Westfield brand in Australia and New Zealand. Originally the Scentre Group limited belongs to
the western Suburbs of Sydney. These primary activities of this corporation are to undertake the
ownership, designs or constructs, development, property management, leasing and creating
marketing centers. Founded in the year 2014, as a spin off from Westfield Development
Corporation, the same was also listed on Australian Stock Exchange (Scentre Group Limited,
2019).
Ratio analysis
Ratio analysis is understood as a technique that is useful for comparison of the items
available in the financial report of the Scentre Group limited. Ratios can be evaluated on the
basis of the previous years or on the basis of the benchmark. There are several categories on the
basis of which these ratios are being compared to get an insight of the financial performance off
the business. Mainly this comparison is undertaken to understand the position of the Scentre
Group limited with respect to the competitors (Accountingtools.com, 2018). In this section a
detailed ratio analysis has been undertaken for Scentre Group Limited for the period of 2017 and
2018 (Setiawan & Amboningtyas, 2018).