Coca Cola Amatil Limited: Financial Analysis and Board Assessment

Business Report
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Contents
Contents...........................................................................................................................................2
Introduction......................................................................................................................................4
a) Provide a brief summary of the company. Include details such as industry sector, primary
activities, and recent performance...............................................................................................4
b) Table that outlines details of the Board of Directors. Include items such as name, gender,
age, education, career history, remuneration, and any other details you think are important or
interesting....................................................................................................................................5
c) Provide a brief assessment on the characteristics of the Board.............................................10
d) List and comment on important investment or financing decisions made by Coca Cola
Amatil Limited during the year.................................................................................................10
e) Coca Cola Amatil Limited follows the corporate governance recommendations of the
Australian Stock Exchange (ASX) Corporate Governance Council (CGC) and has several
policies in place to support its corporate conduct. Outline the key recommendations of the
ASX CGC in table format..........................................................................................................11
f) Identify the company’s audit firm; specify what auditor’s state in relation to the accounting
information and their independence..........................................................................................12
g) List some key measures taken by the Coca Cola Amatil Limited to ensure that its business
operations have incorporated high level of ethics and ethical judgments.................................13
h) Identify the top five investors of Coca Cola Amatil limited and comment on the
significance of their ownership stake........................................................................................13
i) Analyse the financial statements of Coca Cola Amatil Limited for 2017 using ratios and
comment on the following aspects of the company...................................................................13
Conclusion.....................................................................................................................................14
References......................................................................................................................................15
Appendix........................................................................................................................................18
Liquidity Ratios.........................................................................................................................18
Cash Flow Ratio........................................................................................................................18
Capital Structure........................................................................................................................18
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Profitability Ratio......................................................................................................................18
Asset Management Ratio...........................................................................................................19
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Introduction
A company to achieve success must analyse its strategies and the management decision that they
have made during the year through which they can elaborate the strategies for future. This is
important for the company to analyse the financial performance and the environment in which
they are working so that they are able to make the key financial decisions on time. So for this
company has to form various short term and long term decisions which would help them to take
the ethical judgement as and when required (Ashley, 2017). While for achieving success the
company should interpret both the internal and external financial reports so as to make the
financial decisions more accurately. This soft drink Processing industry is considered as one of
the largest industry around the globe and is also the largest revenue generator in the Australia. In
this report the analysis would be done of Coca-Cola Amatil where the financial decisions and the
profitably of the company would be discussed. Also the financial ratios would be derived for the
company which would help in knowing the liquidity and the efficiency of the company.
a) Provide a brief summary of the company. Include details such as industry sector, primary
activities, and recent performance.
Coca-Cola Amatil is one of the biggest bottlers of the non-alcoholic drinks which are ready to
use. This company serves vast area so as to take over Asia-pacific market where there are no
competitors in the market. This is the one of the main bottling unit for Coca-Cola where they
assure the best in class bottling service for the company. Company is currently operating in six
nation state which includes Australia, New Zealand, Indonesia, Papua New and the Samoa where
they are considered as leaders. The company is currently working in Beverage industry and is the
leader in this sector. The company is having around 13,000 employees who are working day and
night so as to serve 270Mn consumers (Bini, Dainelli and Giunta, 2016). The company currently
has more than 130 plus brands to serve the consumers so that they are able to achieve The
company is also working in the segment of alcohol and the coffee operations across the Australia
these are done through the process of contracts. The company is focusing on stabilising the
earning and the returns in the Australia. Hence this has been seen in the company’s performance
has been good and the earning per share of the company in the year 2017 has been increased by
2.2 percent (Chairman’s Review, Annual report, Coco-Cola Amatil, 2017. Page no. 6). While on
the other hand the companies trading revenue has decreased by the 2.8% which is considered as
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