Financial Analysis of Beacon Lighting Group Limited

Running Head: Accounting for managers 1
Project Report: Accounting for managers

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Executive summary
The accounting for manager’s report has been prepared over BEACON LIGHTING
GROUP LIMITED. In the report, Common size statement analysis and trend analysis study
has been done to measure the performance of the company in last 5 years. Along with that, a
ratio analysis study has also been done to identify whether the key financial position of the
business is good or not. It is an Australian organization which was found in the year of 1967.
This is the largest specialist retailer of lights in Australian market. The study represents that
the various elements of total revenue, expenses, assets, liabilities and equity have been
changed in last 5 years due to the changes in requirement of the organization and market
demand. The study has been done over the financial statement of last 5 years and it has been
found that overall financial position of the organization is strong and the company is a good
choice for the purpose of investment.
Overall, the study represents that in the last 5 year financial statement of the company,
various changes have been seen. The report explains that it is required for the management of
the organization to make few changes into the financial element of the business in order to
improve the overall performance of the organization so that the overall position of the
company could be strong. Such as, the operating expenses could be controlled by the business
to improve the profitable position of the company. Overall, investors could invest in the
company for long term as well as short term to enhance the return position.

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Contents
Introduction.......................................................................................................................4
Company overview...........................................................................................................4
Analysis over common size financial statement...............................................................4
Trend analysis...................................................................................................................5
Ratio analysis....................................................................................................................9
Conclusion......................................................................................................................12
Recommendation............................................................................................................12
References.......................................................................................................................14
Appendix.........................................................................................................................15

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Introduction:
Financial analysis is a technique of accounting which is used to calculate the changes
and performance of a business over a period of time. Financial analysis study makes it easier
for the companies and all the stakeholders of the company to identify and calculate the
financial performance of the company and recent changes in the organization so that they
could reach over a better conclusion and a proper strategy could be created for near future.
This report focuses over the BEACON LIGHTING GROUP LIMITED. The company has
been targeted to understand the concept of financial analysis and their application over an
organization. Common size statement analysis and trend analysis study has been done in the
report to measure the performance of the company in last 5 years. Along with that, a ratio
analysis study has also been done to identify whether the key financial position of the
business is good or not. Overall, the report would give a brief idea about the investment
position in BEACON LIGHTING GROUP LIMITED.
Company overview:
BEACON LIGHTING GROUP LIMITED is an Australian organization which
operates in lighting industry of the country. The company has been established in the year of
1967. Since 1967, the company has become the largest specialist retailer of light globes,
lighting, ceiling fans along with a wide range of services, advices and the knowledge. The
company offers a great range of products, exclusive range of lights, encompasses both design
and fashion elements along with the latest technology for energy efficient. The main target
market for the business is middle to upper class families, corporate and hotel industry which
has approximately a network of 110 stores (About us, 2019). Also, currently 100 stores are
operated in the state along with 4 franchise store in overall Australian market.
Financial statement of the company has been studied and found that various changes
have taken place in the company in last few years. Currently, the market cap of the business
is $ 218 million. Current stock price of the company is $ 0.995. A good price movement has
been found in the stock price in last few months in the organization.
Analysis over common size financial statement:
Common size financial statement is the financial statement of the business which
describes about the financial assets, liabilities, revenue, expenditures, cash position etc of the
business in particular period and then compares it with another period to identify the changes