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Accounts Assignment of Apollo Tourism

   

Added on  2020-05-11

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RUNNING HEAD: ACCOUNTS ASSIGNMENTACCOUNTS ASSIGNMENT
Accounts Assignment of Apollo Tourism_1
ACCOUNTS ASSIGNMENT1ContentsINTRODUCTION.....................................................................................................................................2DEBT VALUATION..............................................................................................................................2SHARE VALUATION............................................................................................................................4COST OF CAPITAL...............................................................................................................................7MARKET ANALYSIS...........................................................................................................................10REFERENCES........................................................................................................................................12
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ACCOUNTS ASSIGNMENT2INTRODUCTIONApollo Tourism and Leisure Ltd is used for this question. Apollo is the Australian based company and since 1985, the company has come into operations but in November 2016the company has become listed in ASX (ASX: ATL). The main business activities of the company are to do producing, wholesaling, leasing, retailing and issuing the wide varieties ofleisure activities such as motorhomes, campervans and caravans. The other business locationsof Apollo around the world are US, Canada, North America and New Zealand. The central agenda of Apollo is to fulfil the potentials of the clients (Prospectus, 2017). DEBT VALUATION1.Short-Term Debt and Long-Term Debt of Apollo Tourism and Leisure Ltd Debts are the outstanding’s in order to fulfil the financial necessities. Debts have 2 types of nature: Short-term and Long-term. Short-termDebt are the money owed and the duration of repayment is < 1 year and it is shown under the “Current Liabilities” in the balance sheet. For this case, Trade payables and borrowings - current are taken as Short-term Debt. Long-term Debt are the money owed and the duration of repayment is > 1 year and it is shown under the “Non-Current Liabilities” in the balance sheet. For this case, borrowings –non-current are taken as Long-term Debt (MorningStar, 2017). Particulars20172016Change in %SHORT-TERM DEBTTrade Payables $ 110,64,000.00 $ 72,03,000.00 53.60%Borrowings - Current $ 1118,94,000.00 $ 422,81,000.00 164.64%TOTAL $ 1229,58,000.00 $ 494,84,000.00 148.48%LONG-TERM DEBTBorrowings - Non-Current $ 567,87,000.00 $ 606,99,000.00 -6.44%TOTAL $ 567,87,000.00 $ 606,99,000.00 -6.44%(Source: Annual Report, 2017).
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ACCOUNTS ASSIGNMENT32.Debt structure consistency ofApollo Tourism and Leisure Ltd Particulars20172016Equity $ 1014,16,000.00 $ 315,50,000.00 Total debt $ 1797,45,000.00 $ 1101,83,000.00 Debt/Equity1.773.49Industry Average1.661.66(Source: Annual Report, 2017).Consider the above slab, it has been observed that Apollo Tourism and Leisure Ltd performance is regular with the industry ratio in 2017. Industry average is 1.66 in both years whereas the Apollo’s figure is 1.77 in 2017 and 3.49 in 2016 (Investing. com, 2017). 3.Company’s influences on the long-term and short-term proportionsParticulars20172016Change in %Industry %Short-term Debt $ 1229,58,000.00 $ 494,84,000.00 148.48%166.33%Long-term Debt $ 567,87,000.00 $ 606,99,000.00 -6.44%55.99%Total Debt $ 1797,45,000.00 $ 1101,83,000.00 Consider the above slab, it has been observed that long-term and short-term debt of the Apollo Tourism and Leisure Ltd is not aligned with the industry figure. Therefore, the short-term debt shown is 148.48% while the average of industry is 166.33% which indicates the negative influence for the company. For long-term debt, there is also the negative influence because the Apollo average is -6.44% while the average of industry is 55.99% (Investing. com, 2017). 4.Cost of DebtParticulars20172016Interest Expenses $ 77,53,000.00 $ 72,92,000.00 Total Debt $ 1797,45,000.00 $ 1101,83,000.00
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