Accounting and Business Research
Added on 2021-06-15
19 Pages4052 Words66 Views
Accounting for Business1
Executive SummaryThis report demonstrates the important of gaining an analysis of the different items of thefinancial statements of a business entity for evaluation of its financial performance. In thiscontext, the financial performance of AGL Energy Limited is evaluated with the use of itsfinancial statements such as cash flows and balance sheet over the last few years. The report hasalso adopted the use of ratio analysis technique fro depiction of its financial condition to theinvestors. The information from the director’s report related to the management efficiency is alsoprovided for guiding the decision-making process of investors. 2
ContentsIntroduction.................................................................................................................................................4Section 1: Financial Standing of AGL Energy during the past financial years...............................................4Part 1.1: Profitability position of AGL Energy during the last two years and its comparison with competitor Origin Energy........................................................................................................................4Part 1.2: Analyses of cash flow statement of AGL Energy........................................................................7Part 1.3: Evaluation of financial position of AGL Energy through analyzing the balance sheet...............8Section 2: Calculation of financial ratios of AGL Energy for last three years..............................................10Return on Assets:...................................................................................................................................11Inventory Turnover Ratio:.....................................................................................................................11Quick Ratio:...........................................................................................................................................12Price Earnings Ratio:..............................................................................................................................13Section 3: Explanation of the Management working in the best Interest of AGL Energy Limited for guiding the decision-making of Investors..................................................................................................13Analysis of Corporate Governance Statements & Practice of Integrity Policy.......................................13Management Approach Towards..........................................................................................................14Risk Management..............................................................................................................................14Financial Reporting............................................................................................................................15Information Processing & Accounting functions................................................................................15Business Operations..............................................................................................................................16Investments & Investment Activities.....................................................................................................16Financing & Financing Activities............................................................................................................16Industry Size..........................................................................................................................................17Major Players/Competitors...................................................................................................................17Market Shares of Industry Players.........................................................................................................17Conclusion.................................................................................................................................................18References.................................................................................................................................................193
IntroductionThis report depicts an overview of the organizational performance of a selected companywithin Australia listed on ASX. The organizational performance is evaluated by examining thefinancial standing of the selected company through carrying out the analysis of its profitabilityby comparing its current year financial figure with the previous one and also from its competitorsoperating within the same industry. Also, the analysis of the cash flow statement is undertakenfor identifying the financial, operating and investing activities of the selected company. Also, thefinancial condition of the selected company is evaluated on the basis of the financial figurespresented in its balance sheet. In addition to this, the report has examined the financialperformance of the company with the use of ratio analysis technique by adopting the use ofmainly return on assets, inventory turnover, quick ratio and price-earnings ratio over the lastthree financial years. Lastly, on the basis of director’s report, the report has also carried out anevaluation of the role of management of the selected company acting in its best interest byadopting the ethical standards for protecting the investor confidence. Section 1: Financial Standing of AGL Energy during the past financial yearsPart 1.1: Profitability position of AGL Energy during the last two years and its comparison with competitor Origin EnergyThe financial standing of AGL Energy Ltd for the past two years and its comparison withits competitor Origin Energy is carried out as follows: Comparison of current financial data with previous financial dataProfit and loss StatementAGL EnergyComparison of financial items of current year with financial items of previous yearThe amount are shown as $ millionFinancial Items20162017Increase/DecreaseContinuing operationsInamountin %Revenue or net sales$11,150.00 $12,584.00 $1,434.00 12.86%4
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