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Financial Statement Analysis of Blackmores Company- Assignment

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Added on  2019-11-26

Financial Statement Analysis of Blackmores Company- Assignment

   Added on 2019-11-26

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By student name ProfessorUniversityDate: 01 September 2017.
Financial Statement Analysis of Blackmores Company- Assignment_1
1ContentsQuestion no. 7............................................................................2Question no. 8............................................................................5Conclusion..................................................................................7Refrences....................................................................................81 | P a g e
Financial Statement Analysis of Blackmores Company- Assignment_2
2Question No. 7Blackmores is one of the companies listed on Australian Stock Exchange. As per the statement ofchanges in Equity and the Notes on Accounts on the retained earnings, the amount has changed from $135.258 Mn in 2016 to $ 135.703 Mn in 2017. Retained earnings is generally the amount of profit madeby the company and retained by it for future growth and investment based on the opportunities seen inthe market. Profit may be distributed to shareholders in the form of dividend or retained for growth.Profit which is retained is called “retained earnings”In the year 2017, the company made a retained earnings of $59.013 Mn out of the profits earned for theyear and made a dividend distribution to the shareholders amounting to $58.568 Mn. The company is bearing the long term interest bearing liabilities in its Balance Sheet at $ 78.96 Mn in2017 which was $ 55.45 Mn in 2016. The group is carrying a floating rate interest borrowing and thisfaces the strong interest rate risk. [ CITATION Das17 \l 1033 ]The interest is well managed by thecompany by the use of interest rate swaps. A detailed extract of the annual report showing the interestrates on financial instruments is attached below. The component of debt has increased considerably in2017 in the capital structure due to which the debt to equity ratio has increased from 9.1% in 2016 to20.1% in 2017. This shows that the company is taking use of trading on equity and making use of thefunds at lower rates of interest.2 | P a g e
Financial Statement Analysis of Blackmores Company- Assignment_3

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