Accounting for Decision Making: Company Research, Graphs and Investor Information

This article provides information about SEEK Limited, including its services and products, CEO, profit and loss, dividend, total assets, number of employees, and share price. It also includes graphs of share price movement and identification of key financial data and ratio analysis.

Running head: ACCOUNTING FOR DECISION MAKING
Accounting for decision making
Name of the student
Name of the university
Student ID
Author note

1ACCOUNTING FOR DECISION MAKING
Table of Contents
Part 2 – Company research, graphs and investor information...................................................2
Answer [A].............................................................................................................................2
Answer [B].............................................................................................................................3
Answer [C].............................................................................................................................3
Answer [D].............................................................................................................................4
Answer [E].............................................................................................................................4
Part 3 – Identification of the key financial data and ratio analysis............................................5
Answer [A].............................................................................................................................5
Answer [B].............................................................................................................................5
Reference....................................................................................................................................8

2ACCOUNTING FOR DECISION MAKING
Part 2 – Company research, graphs and investor information
SEEK Limited is the diverse group of entities and the main purpose of the company is
to help the people to live more productive and fulfilling working lives and assist the
organization to become successful. The company owns the leading job boards in New
Zealand, Australia, Brazil, Mexico and all over the South East Asia (Seek.com.au 2018).
Answer [A]
1. Services and products – SEEK Limited is global leader in for operation and creation
of online markets for employments. The main activities of the company are to match
the candidates and hirers online with career opportunities and associated services. It
provides online placements and sourcing of the candidates. Further, the company
provides provision and distribution of courses related to higher education
(Seek.com.au 2018).
2. Name of CEO – Andrew Bassat
3. Salary of CEO – Total remuneration of CEO for the year ended 2017 was $ 45,38,592
4. Profit and loss after tax at the end of the year 2016 – profit after tax for the year ended
2016 was $ 399.4 million (Seek.com.au 2018)
5. Payment of dividend – interim dividend for the year ended 2017 was paid at 23 cents
per share and paid on 19th April 2017. Final dividend for the year ended 2017 was
paid at 21 cents per share and paid on 13th October 2017
6. Total assets of the company – Total asset of the company for the year ended 2017
amounted to $ 3683 million (Seek.com.au 2018)
7. Number of employees – At present the company is employing more than 6000 people.
8. Share price – share price at close of day on 18th May 2018 – High – 20.80, Low –
20.66.

3ACCOUNTING FOR DECISION MAKING
Answer [B]
Share price movement graph for SEEK Limited
4/20/2018
4/22/2018
4/24/2018
4/26/2018
4/28/2018
4/30/2018
5/2/2018
5/4/2018
5/6/2018
5/8/2018
5/10/2018
5/12/2018
5/14/2018
5/16/2018
5/18/2018
17.5
18
18.5
19
19.5
20
20.5
21
21.5
Seek Limited
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Share price movement graph for All Ordinary Index
4/20/2018
4/22/2018
4/24/2018
4/26/2018
4/28/2018
4/30/2018
5/2/2018
5/4/2018
5/6/2018
5/8/2018
5/10/2018
5/12/2018
5/14/2018
5/16/2018
5/18/2018
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6100
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6300
All ordinary index
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Answer [C]
Share price movement

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It can be identified from the above graphs for daily share movement for last 30 days
from 18th April 2018 to 18th May 2018 that the share price for both SEEK Limited as well as
All Ordinary Index are upward moving. However, the share prices of Seek Limited are
moving moderately whereas the share of All Ordinary Index was highly moving till 5-4-2018.
However, it started rising moderately after that date. From 4-20-2018 to 5-18-2018 the stock
of All Ordinary Index increased from 5964.40 to 6190.90. On the other hand, the stock of
SEEK Limited increased from 19.07 to 20.75 over the period under concern. Therefore, the
movement of All Ordinary Index was higher as compared to the share movement of Seek
Limited (Au.finance.yahoo.com 2018).
Answer [D]
Calculation of gain or loss
Seek Limited’s Share purchased on 20th April 2018 at the rate of 19.07 per share.
Closing share price on 18th May 2017 was 20.75 per share. Therefore gain per share is (20.75
– 19.07) = 1.68 per share (Au.finance.yahoo.com 2018).
Answer [E]
An investor is always suggested to purchase the share when its price are in reducing
trend and on the contrary, shall sell the share when the price is in increasing trend. As the
share price of SEEK Limited is in increasing trend the investors is advised to sell the shares
now. The reason for this decision is that if the share price starts falling once the investor will
start losing his money on the shares.

5ACCOUNTING FOR DECISION MAKING
Part 3 – Identification of the key financial data and ratio analysis
Answer [A]
Key financial data of SEEK Limited for the year ended 2017
Particulars Amount ($m)
Revenue / Sales 1,053.20
Interest Expense -29.30
EBIT 466.60
Net Profit Before Tax 437.30
Net Profit After Tax 362.00
Current Assets 841.90
Total Assets 3,683.00
Current Liabilities 550.00
Total Liabilities 1,643.10
Total Equity 2,039.90
Answer [B]
Ratio analysis
Ratio Formula 2017
Profitability ratio
Net profit margin Net profit/Sales * 100 34.37
Return on Asset Net profit/Total assets * 100 9.83
Stability ratio
Debt to asset ratio Total liabilities / total asset 0.45
Debt equity ratio Total liabilities / total equity 0.81
Liquidity ratio
Current ratio Current assets / Current liabilities 1.53
Quick ratio (Current assets - inventories) / current liabilities 1.53

6ACCOUNTING FOR DECISION MAKING
Profitability ratio – the profitability ratio is used to measure the profit earning ability of the
company. For measuring the company’s profit earning ability net profit margin and return on
assets is taken into consideration (Brooks 2015).
 Net profit margin – net profit is the amount left with the company after payment of
various expenses from the sales revenue. Net profit is compared to sales to compute
the net profit margin of the company. It can be identified from the calculation that the
met profit margin of SEEK Limited is 34.37% that represents that the profitability
position of the company is string (Delen, Kuzey and Uyar 2013).
 Return on assets – it measures the profit earned by the company using its assets. It can
be seen from the calculation that the return on asset for the company was 9.83%. It
signifies that from each dollar of assets the company earned 9.83 cents of profit.
Stability ratio – it is used to measure the financial stability of the company and is measured
through comparing its debts to assets or equity. For measuring the company’s stability
position debt to asset ratio and debt to equity ratio is taken into consideration (Schönbohm
2013)
 Debt to asset ratio – it measures the proportion of asset of the company obtained
through borrowing. From the calculation it is observed that 45% of the company’s
asset is financed through borrowing.
 Debt to equity ratio – it represents the debt portion and equity portion used by the
company to finance the assets. It is found that significant portion of asset that is 81%
of the asset is obtained through debt (Garcia-Appendini and Montoriol-Garriga 2013).
Liquidity ratio – it measures the ability of the company to pay off the short-term obligation
with the available current assets. Both current ratio as well as quick ratio of the company is

7ACCOUNTING FOR DECISION MAKING
1.53. It represents that the company’s current assets are more than its current liabilities and
therefore, it is efficient to meet its short-term obligations (Ali 2013).
From the above it can be concluded that the company is a good investment
opportunity. The reason is that the profitability position and liquidity position is stating that
the company is stable, efficient and sustainable for long-term.

8ACCOUNTING FOR DECISION MAKING
Reference
Ali, S.S., 2013. State of liquidity management in Islamic financial institutions. Islamic
Economic Studies, 21(1), pp.63-98.
Au.finance.yahoo.com. 2018. Yahoo is now part of Oath. [online] Available at:
https://au.finance.yahoo.com/quote/sek.ax?ltr=1 [Accessed 27 May 2018].
Brooks, R., 2015. Financial management: core concepts. Pearson.
Delen, D., Kuzey, C. and Uyar, A., 2013. Measuring firm performance using financial ratios:
A decision tree approach. Expert Systems with Applications, 40(10), pp.3970-3983.
Garcia-Appendini, E. and Montoriol-Garriga, J., 2013. Firms as liquidity providers: Evidence
from the 2007–2008 financial crisis. Journal of Financial Economics, 109(1), pp.272-291.
Schönbohm, A., 2013. Performance measurement and management with financial ratios: the
BASF SE case (No. 72). Working Papers of the Institute of Management Berlin at the Berlin
School of Economics and Law (HWR Berlin).
Seek.com.au. 2018. [online] Available at: https://www.seek.com.au/ [Accessed 27 May
2018].