Annual Report Analysis and Interpretation

Running head: ANNUAL REPORT ANALYSIS AND INTERPRETATION
ANNUAL REPORT ANALYSIS AND INTERPRETATION
Name of the Student
Name of the University
Author Note

ANNUAL REPORT ANALYSIS AND INTERPRETATION1
Executive Summary
The purpose of this project is to bring out the importance of the Annual Reports and its
interpretation. The report clearly gives a brief understanding of why annual reports are analysed
and what does the results interpret. The selected company in this report is the Bega Cheese. The
annual report has been assessed and analyzed. Industrial strategies, accounting policies and
financial analysis have been done. The same analysis of Telstra has been done and then
compared with Bega Cheese. The report concludes with the key recommended focus points of
Bega and Telstra.

ANNUAL REPORT ANALYSIS AND INTERPRETATION2
Table of Contents
Introduction......................................................................................................................................3
Discussion........................................................................................................................................3
Company Overview.....................................................................................................................3
The Mission and Vision Statement..............................................................................................3
Industry Analysis.........................................................................................................................4
Competitive Strategy Analysis................................................................................................4
Corporate Strategy Analysis....................................................................................................4
Accounting Analysis....................................................................................................................5
Financial Analysis.......................................................................................................................6
Social Responsibility and Sustainability...................................................................................10
Competitive Analysis.................................................................................................................10
Accounting Policies-..................................................................................................................11
Financial Analysis.....................................................................................................................11
Conclusion.....................................................................................................................................12

ANNUAL REPORT ANALYSIS AND INTERPRETATION3
Introduction
The analysis and interpretation of these reports is important for every organisation. It
helps in strategic corporate decision making and increasing long term gains. The organisational
health and existing strategies of the organisation can be clearly ascertained from these reports.
These strategies and performances are compared with the competitors and the industry standards
and required corrective measures are then implemented.
Deep analysis of the financial reports helps in determining the past, present and the
projected performance of the company. The annual report gives a detailed view of how a
company maintains its inventories, charges its depreciation, values its closing stocks, and many
such aspects. The liquidity, profitability and solvency position of the company can also be
ascertained through ratio analysis and cash flow analysis. It also helps in understanding the
sustainability issues taken up by the company. The following paragraphs will be presenting a
detailed discussion on the analysis of the financial report of Bega Cheese.
Discussion
Company Overview
Bega Cheese Ltd. is an Australian company that is specialised in the production of cheese
and dairy products. It was first established in the year 1899 as a creamery company. It produces
and distributes high quality cheese products all over the world.
The Mission and Vision Statement
The vision statement of the company is “heritage, people, customers and community”.
The vision is to become The Great Australian Food Company. This vision guides the strategic