Accounting for Business Assignment PDF

Running head: ACCOUNTING FOR BUSINESS
Accounting for Business
Name of the Student:
Name of the University:
Author’s Note:
Course ID:

1ACCOUNTING FOR BUSINESS
Executive Summary:
The purpose of the report is to conduct financial evaluation of an ASX listed
organisation by assessing its financial statements for the previous two years. In this paper,
QMS Media Limited is chosen as the firm that provides out-of-home advertising and media
services in Australia and other global nations. In order to widen the scope of the report, the
financial condition of QMS Media Limited is compared with its two main rivals, Ooh Media
Limited and APN Outdoor Group Limited. It could be inferred that APN Outdoor Group is
the best performing company among the three organisations, as evaluated from the financial
analysis. Even though the investors could earn positive return on investment by investing in
the shares of QMS Media Limited, the returns might be minimised in future.

2ACCOUNTING FOR BUSINESS
Table of Contents
1.0 Introduction:.........................................................................................................................3
1.1 Purpose:............................................................................................................................3
1.2 Scope:...............................................................................................................................3
1.3 Limitations:......................................................................................................................3
2.0 Company overview of QMS Media Limited:......................................................................3
3.0 Ratio analysis:......................................................................................................................4
3.1 Current ratio:....................................................................................................................4
3.2 Quick ratio:.......................................................................................................................5
3.3 Gross profit margin:.........................................................................................................6
3.4 Return on equity:..............................................................................................................7
3.5 Return on assets:..............................................................................................................8
4.0 Analysis and comparison of QMS Media Limited with Ooh Media Limited and APN
Outdoor Group:..........................................................................................................................9
References:...............................................................................................................................13

3ACCOUNTING FOR BUSINESS
1.0 Introduction:
1.1 Purpose:
The purpose of the report is to conduct financial evaluation of an ASX listed
organisation by assessing its financial statements for the previous two years. In this paper,
QMS Media Limited is chosen as the firm that provides out-of-home advertising and media
services in Australia and other global nations. The financial evaluation is carried out by
computing five various financial ratios for obtaining an overview of the present standing of
the firm in the operating market of Australia.
1.2 Scope:
In order to widen the scope of the report, the financial condition of QMS Media
Limited is compared with its two main rivals, Ooh Media Limited and APN Outdoor Group
Limited. Three ratios from the above five ratios are used for ascertaining the best performing
company in the market.
1.3 Limitations:
Since this report contains only analysis of certain financial ratios computed, such
ratios could only tell the past performance of the organisation. It would be difficult to predict
the future growth through these ratios, since they ignore the recessionary effects on the global
economy, variations in industrial trends and customer preferences. Moreover, the ratios
computed are for the past two years only, while consideration of another past three additional
years could have improved the analysis further.
2.0 Company overview of QMS Media Limited:
QMS Media Limited is one of the leading outdoor media companies in Australia and
New Zealand. It specialises in providing its clients and agency partners with new and
innovative advertising solutions throughout its premium outdoor media network
(Qmsmedia.com 2018). By using its portfolio of outstanding conventional and digital
billboards in large formats, offerings of exclusive street furniture along with opportunities of
ambient media, it is committed to provide its clients with flexible and tailored outdoor
solutions for delivering solutions. Thus, it provides its clients with engaging and inspiring
campaigns for their target audiences.