Accounting for Managers

Running head: ACCOUNTING FOR MANAGERS
Accounting for Managers
Name of the Student:
Name of the University:
Authors Note:

ACCOUNTING FOR MANAGERS
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Table of Contents
Introduction:...............................................................................................................................2
Task 1:........................................................................................................................................2
1. Analysing the capital structure of CSL Limited over the period of three years:...................2
2. Utilising the capital structure of CSL Limited with the help of relevant practical and
theoretical approach:..................................................................................................................4
Task 2: Providing relevant information of the proposed project to the CEO of OnePack’s with
relevant justification from investment appraisal techniques and sensitivity analysis................5
Conclusion:................................................................................................................................9
References and Bibliography:..................................................................................................10

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Introduction:
The main evaluation that has been conducted in the overall assessment is directly
related to the capital structure analysis the CSL limited and investment approach then used
for analysing a proposed project. Moreover, from the relevant evaluation, it can be detected
that the overall capital structure of the organisation is mainly evaluated to determine the
financial viability of their current options and the measure that has been made to secure
investment decisions. In the similar process, the analysis has been conducted on different
investment appraisal techniques and sensitivity analysis on the project that is presented to
Onepack Limited.
Task 1:
1. Analysing the capital structure of CSL Limited over the period of three years:
Capital Structure and Payout Ratios:-
Particulars 2016 2017 2018
Total assets
$ 10,774.50 $
9,122.70
$ 7,562.70
Total liabilities
$ 6,694.60 $
5,958.90
$ 4,995.90
Total equity
$ 4,079.90 $
3,163.80
$ 2,567.20
Dividend per share 1.720 1.360 1.260
Earnings per share 3.822 2.937 2.689
Debt ratio 0.62 0.65 0.66
Equity ratio 0.38 0.35 0.34
Debt to equity ratio 1.64 1.88 1.95
Dividend payout ratio 45.00% 46.31% 46.86%
The capital structure composition of CSL Limited is mainly depicted in the above
table, where the efficiency and financial stability conditions of the organisation is mainly
evaluated in the above table. From the relevant analysis, it can be detected that all three

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components such as total assets, total liabilities and total equity of the organisation has
mainly increased over the period of three years. Hence, the analysis can eventually help in
determining the actual financial performance of CSL Limited over the period of three years.
2016 2017 2018
-
0.50
1.00
1.50
2.00
2.50
Capital Structure and Payout Ratios
The information provided in the above graph directly states about the financial
performance of the organisation over the period of time. Hence, from the analysis, it is
determined that the total debt composition of the company’s capital structure has mainly
improved over the period of time. The debt composition of CSL Limited from 2016 to 2018
has mainly increased from the levels of 0.62 to 0.66, which is negatively affecting the total
solvency conditions of the organisation (Csl.com 2019). From the analysis, it is detected that
the organisation has been accumulating debt to support its operations over the period of three
years, which is the main reason why the debt level has increased, while equity levels have
declined. Guinnane and Schneebacher (2018) mentioned that the increment in debt levels of
an organisation directly increases the insolvency conditions and finance cost, which might
negatively affect the profit conditions of the organisation.
In the similar instance, the equity level of the company has mainly declined from the
levels of 0.38 in 2016 to 0.34 in 2018, which is the main reason behind the declining capital