Capital Structure and Financial Analysis of AMP Limited

RUNNING HEAD: ACCOUNT AND FINANCE
ACCOUNT AND FINANCE

CCOUNT AND FINANCE 1
Executive Summary
This assignment covers a report on the capital structure of AMP limited through
categorisation of capital structure into debt and equity portion. AMP Limited is established in
1849 and dealing in providing financial services. In the year 1998, it is listed in Australian
Stock exchange. The company is operated in Australia and New Zealand and providing
financial services including banking, wealth management, superannuation services and
financial planning to the customers. Further this report also covers the computation of firm’s
after tax weighted average cost of capital and on the basis of return on equity it is evaluated
that the company is providing sound returns to the shareholders. In addition to this, the
capital structure of the company is assessed for the previous three years such as 2017, 2016
and 2015 and also comparison is made with Australia and New Zealand Banking Group.
This assignment further provides critical analysis of key financial ratios and this report ends
with providing the conclusion mentioning that AMP limited is successful in managing risks
and wealth generation of the shareholders is also maximised in the past three years.

CCOUNT AND FINANCE 2
Contents
PART B...................................................................................................................................................3
Introduction.......................................................................................................................................3
Conclusion.......................................................................................................................................15
References.......................................................................................................................................16

CCOUNT AND FINANCE 3
PART B
Introduction
AMP limited is an Australian based company offering services and solutions across
financial advice, retirement service, lending, capital management, investing, retirement
income and life insurance. AMP was established in Australia in the year 1849 with an
objective that every people should govern their life. Currently the company offers services
globally covering 11 nations in Middle east, Asia, UK, Europe and North America (AMP,
2018).
Further AMP limited has 750000 investors and covering over 3.8 million clients in
New Zealand and Australia and 100000 AMP bank customers (AMP, 2018).
In this assignment, Debt and equity portion is computed for previous years that is
2017, 2016 and 2015. Capital structure is also compared with Australia and New Zealand
Banking Group. Further in this assignment weighted average cost of capital and key financial
ratios are computed (AMP, 2018).
Categorisation of Debt and Equity of AMP limited
Capital Structure of AMP Limited is categorised into Debt and Equity. The figures of
2017, 2016 and 2015 are as follows:
AMP Limited
For the year ended 31st December
Particulars 2017 ($m) 2016 ($m) 2015 ($m)
Debt
Payables 1,752.00 1,852.00 2,031.00
Current tax liabilities 71.00 55.00 271.00