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Analysis of Cash Flow Statement

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Added on  2021-05-31

Analysis of Cash Flow Statement

   Added on 2021-05-31

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Running head: ACCOUNTING FOR BUSINESSAccounting for businessName of the studentName of the universityStudent IDAuthor note
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2ACCOUNTING FOR BUSINESSTable of ContentsProfitability analysis and comparison with competitor..............................................................3Analysis of cash flow statement.................................................................................................4Analysis of balance sheet...........................................................................................................5References..................................................................................................................................7
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3ACCOUNTING FOR BUSINESSAmcor Limited is the Australian packaging company and various segments of thecompany include Amcor Flexibles, Amcor Rigid Plastics and other investments. Thecompany is the global leader in producing and developing the responsible and high qualitypackaging for wide range of foods, pharmaceuticals, beverages, personal care, homeproducts, medical devices, and various other packaging requirements (Amcor.com 2018). Onthe other hand, the main competitor of the company Bemis Company are well known forcreating exceptional packaging for consumer product, food, industrial applications andhealthcare products (Bemis Company 2018). Profitability analysis and comparison with competitorRatio FormulaAmcorBemis2017201620172016Gross profitGross profit/sales*10021.0121.1719.4121.63Operating profitOperating profit/sales*10010.476.112.8610.22Net profitNet profit/Sales*1006.752.902.325.90Looking into the financial statement of Amcor Limited it can be identified that thegross profit of the company has been reduced from 21.17% to 21.01% over the year from2016 to 2017 whereas the gross profit of its competitor Bemis Company is reduced from21.63% to 19.41% over the same period. If the operating profit of 2 companies are consideredit can be observed that the where the operating profit of Amcor Limited is increased from6.11% to 10.47%, the operating profit of Bemis company has been reduced from 10.22% to2.86% over the last 2 years (Han, Yang and Zhou 2013). Finally, if the net profit of thecompanies are analysed it can be observed that the net profit of Amcor Limited has beenincreased from 2.90% to 6.75% whereas the net profit of Bemis company is reduced from5.90% to 2.32% over the years from 2016 to 2017. Therefore, the overall profitabilityposition of Amcor Limited has been improved in 2017 as compared to 2016. On the contrary,
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