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Bega Cheese Limited Financial Analysis

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Added on  2021-06-14

Bega Cheese Limited Financial Analysis

   Added on 2021-06-14

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BEGA CHEESE LIMITEDFinancial analysisName of Author
Bega Cheese Limited Financial Analysis_1
Executive SummaryWith the change in economic condition, each and every company needs to analysis allthe financial performance of company by using the different financial tools. There are severalfinancial tools such as ratio analysis, bottom up analysis, top down analysis and capitalbudgeting tools to evaluate the financial performance of company. In this report, financialperformance of company is gauged by using ratio analysis tool. The Bega Cheese LimitedCompany has been analysed in this report to evaluate the financial performance and its longterm sustainability in market. The ratio analysis tool includes analysis of the liquidity of thecompany, profitability, financial leverage and gearing ratio of Bega Cheese Limited. It hasbeen observed that the due to the sluggish market condition, Bega Cheese Limited hasreduced its capital blockage and focused on increasing the overall efficiency of business atlarge. The Operating profit of company has also gone down since last three year whichshows that company has less effective profitability throughout the time.
Bega Cheese Limited Financial Analysis_2
Table of ContentsExecutive Summary...............................................................................................................................1Introduction...........................................................................................................................................3Description of Company........................................................................................................................3Industry analysis....................................................................................................................................3Financial analysis interpretation of financial statements, and market standing......................................4Ratio analysis.........................................................................................................................................4Liquidity ratio.....................................................................................................................................4Current ratio..................................................................................................................................4Quick ratio.....................................................................................................................................5Profitability ratio................................................................................................................................6Net profit ratio...................................................................................................................................6Return on assets................................................................................................................................7EPS ratio............................................................................................................................................7Efficiency ratio...................................................................................................................................7Receivable turnover...........................................................................................................................7Creditor’s turnover............................................................................................................................7Inventory turnover ratio....................................................................................................................7Solvency ratio....................................................................................................................................8Time interest earned ratio.................................................................................................................9Debt to equity ratio...........................................................................................................................9Market ratio.......................................................................................................................................9Summary and Conclusion....................................................................................................................10References...........................................................................................................................................11
Bega Cheese Limited Financial Analysis_3
IntroductionThis report emphasises upon the financial performance of Bega Cheese Limited. TheBega Cheese Limited Company has been analysed in this report to evaluate the financialperformance. The ratio analysis tool includes analysis of the liquidity of the company,profitability, financial leverage and gearing ratio of Bega Cheese Limited. This analysis onthe Bega Cheese Limited will assist investors to take effective investment decision and it willalso help them to take investment decision. However, Bega Cheese Limited has highfinancial leverage and it has also increased its profitability throughout the time. The liquidityratio reflects the company’s ability to pay off its short term and long term debts from itscurrent assets. Description of CompanyBega Cheese Limited is an Australian Dairy company based in town of Bega NewSouth Wales. It was founded as agriculture co-operative owned by their dairy suppliers. Thiscompany is working on domestic and international level with a view to offer its services forthe best satisfaction of clients. It is also complying with the legal and listing requirements ofthe Australian stock exchange to increase the transparency of the business. The headquarter of the company is in Bega, Australia in which it incorporated its business in1899. Vision It was incorporated with a view to sell dairy products around the globe Mission It has mission to acquire at least 18% market share within upcoming 5 years by offering bestquality dairy products and services. Industry analysis Bega Cheese Limited operates in the dairy product industry. The industry total turnover ofBega Cheese Limited is around AUD $ 1311 million which has increased by 22% since lastthree years. It shows that industry has high profitability growth rate which have been
Bega Cheese Limited Financial Analysis_4

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