Automotive Holding Group Limited

Finance
Chosen Company: Automotive Holding Group Limited
Brief Profile Background of the Company
Automotive Holding Group Limited is an Australian company trading on Australian Stock
Exchange. The company has seen lots of up and down in 52 weeks with prices from double
the current price to a or to a low trough than the current price. The 52 week high of the
company is $ 3.87 and 52 week low of the company is $ 1.39. The company marks its
establishment at Perth, Australia. The company was established in 1952 and is listed on the
S&P/ ASX 200. The largest shareholder in the company is Nick Politis holding 22.8% stake
in the company through AP Eagers Limited. (Automotive Holdings Group Limited, 2019)
Automotive Holding Group Limited forays in the business of retailing in automotives in
Australia and New Zealand (part of Australasia). The major areas of concern of the company
include
(a) Automotive retail;
(b) Refrigerated logistics;
(c) other logistic.
Automotive Retail Segment
Under the automotive retail segment, the company has approximately one hundred and ninety
franchises of motor vehicles in more than 110 dealership locations both across New Zealand
and Australia. This segment is the major contributor of Revenue of the company.
Refrigerated Logistics
Under the Refrigerated Logistic Segment, the company deals in operating cold storages and
in transportation.
Other Logistic
The company also marks its presence in diverse businesses like truck and trailer body
building, transportation of goods along with their storage etc. (Reuters, 2019)
Ratio Analysis of Automotive Holding Group Limited
For analysing the financial health of the company and the proposed future investment
prospects of the company, an analysis has been carried out considering the latest financial
statement and the financial statement of past three years for comparability purpose. The
relevant extracts of Statement of Profit and Loss and the Statement of Financial Position of
the company has been detailed here-in-below:

Automotive Holding Group Limited
Statement of Profit and Loss
Sl
No Particular 30-06-2018
30-06-
2017 30-06-2016 30-06-2015
1 Total Revenue 6474053 6106064 5625999 5245789
2 Cost of Revenue 4977948 4651737 4190744 3928948
3 Gross Profit 1496105 1454327 1435255 1316841
4 Operating Expense
a. Research development
b. Selling general and administrative 1212607 1176435 1128715 1020438
c. Non-recurring
d. Others 97780 79241 84782 85688
e. Total Operating Expenses 6343124 5955611 5447862 5076689
f. Operating income or loss 130929 150453 178137 169100
5 Income from continuing operations
a. Total other income/ expenses net -78602 -60459 -40988 -39072
b. Earnings before interest and taxes 130929 150453 178137 169100
c. Interest expense -44584 -41447 -36580 -33576
d. Income before tax 52327 89994 137149 130028
e. Income Tax expense 14535 28901 40263 35913
f. Minority Interest 20011 14914 24928 23299
g.
Net Income from continuing
operations 37792 61093 96886 94115
6 Net Income 32639 55539 90071 88091
7
Net income applicable to common
shares 32639 55539 90071 88091
Automotive Holding Group Limited
Statement of Financial Position
Sl
No Particular 30-06-2018 30-06-2017 30-06-2016 30-06-2015
1 Current asset
a. Cash and cash equivalent 73046 95035 108593 69862
b. Net receivables 416570 356957 333614 318586
c. Inventory 1110746 899796 828111 732030
d. Other current asset 44981 51023
e. Total Current Asset 1645343 1401911 1304866 1149645
2 Long Term Investment 8355 8316 5076 7375
3 Property Plant and Equipment 376524 401130 359041 349174
4 Goodwill 233738 222565 209277 186614
5 Intangible Asset 305430 290605 252983 205427
6 Other Asset 68701 60866 60192 58847
7 Deferred Long term charges 68701 60866 60192 58847
8 Total Asset 2638091 2385393 2191435 1957082
9 Current Liabilities

Automotive Holding Group Limited
Statement of Financial Position
a. Accounts Payable 186494 137435 96371 102769
b. Short/ Current long term debt 4352 5125 17363 12986
c. Other Current Liabilities 199163 173143 163357 167925
d. Total Current Liabilities 1503207 1224557 1099341 959236
10 Long Term Liabilities 225461 224438 265632 197243
11 Other liabilities 40931 43836 38340 35737
12 Minority Interest 20011 14914 24928 23299
13 Total Liabilities 1861577 1583050 1471932 1261439
14 Total Stock Holder equity 756503 787429 694575 672344
(Verizon Media, 2019)
The fundamental analysis has been carried out on the basis of ratio analysis encompassing
liquidity, profitability, efficiency, solvency and gearing and investment ratio. The
computation of ratios have been presented here-in-below:
Profitability Ratio
(a) Gross Profit Margin: The ratio computed the percentage of sales which exceeds the
cost of goods sold. This ratio measures how efficiently business use its resources like
labour, material and others. It helps in analysing how profitable is the core business
activity of the company without paying any focus on the indirect cost of production. The
higher the gross margin of the company, the better the company is performing. The
computation of Gross Margin is carried out in the following manner:
Gross Profit Margin: Gross Profit earned/ Sales. (InvestingAnswers, Inc., 2019)
The Gross Profit Margin of the company for the current year and the past two years have
been presented here-in-below:
Gross Profit Margin
Sl.
No particular Gross Profit Sales Gross Profit Margin
1 2018 1496105 6474053 23.11%
2 2017 1454327 6106064 23.82%
3 2016 1435255 5625999 25.51%