Annual Report Analysis of Caltex Australia - Strategic Marketing Management

This article provides an analysis of the annual report of Caltex Australia, including the CEO report, director's report, auditors declaration, corporate governance statement, mission and vision, values, and strategies. It also includes the financial statements and notes to financial statements. The article highlights the company's profitability and financial position.

Running head: STRATEGIC MARKETING MANAGEMENT
Strategic Marketing Management
Name of the Student
Name of the University
Author Note

1STRATEGIC MARKETING MANAGEMENT
The annual report analysis of Caltex Australia
About Caltex
The chosen company whose annual report is to be prepared is Caltex Australia
Limited which is an Australian company. The Caltex has develop to be the nation’s leading
transport fuel supplier, with a network of approximately 1,900 company-owned or affiliated
sites. The complex supply chains of the company reliably and safely deliver fuel and an
evolving range of convenience services and products, to more than three million customers
throughout the nation1. The company has been formed in the early 1900s, and is at present
operating more than 4,700 employees and a convenience retail network that covers Australia.
The CEOs report
The CEO of the company is responsible for making top-level managerial decisions
and for the overall success of an entity. They can ask for input on major decisions but is the
ultimate authority in making the final decisions in a company2. The CEO is also known as the
chief executive, president, and managing director.
The annual report of Caltex Australia from the point of view of the CEO is an update
of the performance of the organisation over the preceding year. It is typically published in a
booklet form and offers a breakdown of revenues and expenditures as part of a financial
overview. It includes a summary of major developments effecting the organization, as well as
goals and objectives for the coming year3. The annual report of the CEO is issued to
1 Chen, Wanqing, et al. "Annual report on status of cancer in China, 2011." Chinese journal of cancer
research 27.1 (2015): 2.
2 Bernile, Gennaro, Vineet Bhagwat, and P. Raghavendra Rau. "What Doesn't Kill You Will Only Make You
More Risk‐Loving: Early‐Life Disasters and CEO Behavior." The Journal of Finance 72.1 (2018): 167-206.
3 Buehlmaier, Matthias MM, and Toni M. Whited. "Are financial constraints priced? Evidence from textual
analysis." (2017).

2STRATEGIC MARKETING MANAGEMENT
commonly shareholders of the company as a means of giving a status report to investors,
employees or any other interested stakeholders.
Director’s report
The Caltex has develop to be the nation’s leading transport fuel supplier, with a
network of approximately 1,900 company-owned or affiliated sites. The complex supply
chains of the company reliably and safely deliver fuel and an evolving range of convenience
services and products, to more than three million customers throughout the nation. The
company has continued to evolve the physical operations, skills and capabilities with the
strength in creating value from our integrated, and complex supply chains.
Auditors Declaration
From the annual report of the company, the financial statements consists of the
consolidated income statement, consolidated statement of comprehensive income,
consolidated balance sheet, and consolidated statement of changes in equity and the
consolidated cash flow statement4.
Corporate governance Statement
The basic core values includes the strengths of the culture that would help in the
attainment of the company goal and find innovative ways of production. The Caltex Australia
aims in making a difference to its customers5. In 2018, the company focuses on enhancing the
key capabilities across the business that would enable developments in the interconnected
Fuels & Infrastructure and Convenience Retail businesses.
Mission and Vision of the company
4 Barkemeyer, Ralf, et al. "CEO statements in sustainability reports: Substantive information or background
noise?." Accounting Forum. Vol. 38. No. 4. Elsevier, 2014.
5 Patelli, Lorenzo, and Matteo Pedrini. "Is tone at the top associated with financial reporting aggressiveness?."
Journal of Business Ethics 126.1 (2015): 3-19.

3STRATEGIC MARKETING MANAGEMENT
The primary vision of the company is to overcome the upcoming challenges that take
place in the market. From the annual report of Caltex 2018 it can be observed that the
company has set a vision to be the outright leader in transport fuels across Australia. The
company has continued to evolve the physical operations, skills and capabilities with the
strength in creating value from our integrated, and complex supply chains6. In the 2018,
Caltex has combined the Supply, Trading and Shipping, B2B Sales, Refining, Lubricants and
other asset operations groups to become a single business that is Fuels & Infrastructure.
The values of the organisation
The value of the company is to define the culture and values that would drive a long
term success for Caltex into the future, as well as provide a clear purpose to make Caltex a
great place to work for our people. In the annual report of 2018 the company of Caltex
announced that their primary purpose is to produce wide range of customers friendly with
convenience, and improving the mechanism of the employees to operate in te best of
environment.
The company strategies
The primary strategy of the company is to become the market leader in complex
supply chains and the evolving convenience marketplace, by delivering the fuel and meet the
regular needs of the diverse customers with the help of their substantial networks.
The strategy of Caltex Australia is focused on delivering value from the operations in
Australia and identifying and leveraging new opportunities within the Fuels & Infrastructure
business by enhancing the Growth capability by shipping and trading. This would provide
Caltex an external market of understanding the critical operations among the global business.
6 Kirklin, James K., et al. "Seventh INTERMACS annual report: 15,000 patients and counting." The Journal of
Heart and Lung Transplantation 34.12 (2015): 1495-1504.

4STRATEGIC MARKETING MANAGEMENT
Financial statement of Caltex
Income statement
Income statement(All numbers in
thousands) 2018 2017
Revenue
Total revenue
2,13,98,25
1
1,79,33,20
1
Cost of revenue
1,41,25,38
4
1,10,31,87
9
Gross profit 72,72,867 69,01,322
Operating expenses
Research development - -
Selling general and administrative 11,92,931 10,55,866
Non-recurring - -
Others 51,29,127 49,28,233
Total operating expenses
2,04,47,44
2
1,70,15,97
8
Operating income or loss 9,50,809 9,17,223
Income from continuing operations
Total other income/expenses net -87,363 -53,460
Earnings before interest and taxes 9,50,809 9,17,223
Interest expense -53,416 -59,743
Income before tax 8,63,446 8,63,763
Income tax expense 2,42,694 2,53,283
Minority interest 13,483 12,816
Net income from continuing ops 6,20,752 6,10,480
Non-recurring events
Discontinued operations - -
Extraordinary items - -
Effect of accounting changes - -
Other items - -
Net income
Net income 6,19,085 6,09,940
Preferred stock and other adjustments - -
Net income applicable to common shares 6,19,085 6,09,940

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Balance sheet
Balance sheet(All numbers in
thousands) 2018 2017
Current assets
Cash and cash equivalents 44,521 2,44,857
Short-term investments - -
Net receivables 9,22,420 7,57,109
Inventory 16,94,915 10,80,920
Other current assets 65,767 60,769
Total current assets 27,27,623 21,43,655
Long-term investments 11,360 10,394
Property plant and equipment 28,18,353 26,90,865
Goodwill 3,99,357 1,30,069
Intangible assets 1,17,509 65,266
Accumulated amortisation - -
Other assets 2,81,018 2,62,485
Deferred long-term asset charges 2,44,073 2,38,083
Total assets 63,55,220 53,02,734
Current liabilities
Accounts payable 13,61,704 7,74,633
Short/current long-term debt 8,58,921 6,98,474
Other current liabilities 6,33,019 6,31,310
Total current liabilities 23,58,669 15,02,456
Long-term debt 5,88,495 6,97,564
Other liabilities 2,99,998 2,91,723
Deferred long-term liability charges - -
Minority interest 13,483 12,816
Negative goodwill - -
Total liabilities 32,47,319 24,92,519
Stockholders' equity
Misc. Stock options warrants - -
Redeemable preferred stock - -
Preferred stock - -
Common stock 5,24,944 5,24,944
Retained earnings 26,10,195 22,80,754
Treasury stock -40,721 -8,299
Capital surplus - -
Other stockholder equity -39,511 -7,955
Total stockholder equity 30,94,418 27,97,399
Net tangible assets 25,77,552 26,02,064

6STRATEGIC MARKETING MANAGEMENT
Statement of Cash Flow
Cash flow(All numbers in thousands) 2018 2017
Net income 6,19,085 6,09,940
Operating activities, cash flow provided by or used in
Depreciation 2,11,040 1,96,294
Adjustments to net income -10,922 -9,828
Changes in accounts receivable -1,83,167 -65,774
Changes in liabilities 6,89,284 2,12,909
Changes in inventory -5,75,155 -1,11,035
Changes in other operating activities -20,827 -1,00,177
Total cash flow from operating activities 7,35,032 9,28,202
Investment activities, cash flow provided by or used in
Capital expenditure -3,62,897 -3,23,221
Investments - -17,686
Other cash flow from investment activities - -
Total cash flow from investment activities -8,00,348 -3,57,283
Financing activities, cash flow provided by or used in
Dividends paid -2,92,107 -3,19,405
Sale purchase of stock - -
Net borrowings 1,58,087 -342
Other cash flow from financing activities -1,000 -1,000
Total cash flow from financing activities -1,35,020 -5,89,826
Effect of exchange rate changes - -
Change in cash and cash equivalents -2,00,336 -18,907
Notes to Financial statements
From the annual report of 2018, the income statement that represents the net profit of
the year that has been increased from $ 610,480 in 2017 to $ 620,752 in 2018. This shows
that the company of Caltex limited has generated more profits from the previous year. There
has been in a rise in the profitability7. The other comprehensive income statement of the
company also shows that there has been a fall in the amount from $ 617,233 in 2017 to $
594,754. This shoes negative income for the period of 2018.thenncomes the balance sheet of
the company for the year 2018 that represents the financial position, the balance sheet ratio
that shows the profitability is calculated by finding the current ratio is calculated by dividing
7 Mowry, James B., et al. "2015 Annual Report of the American Association of Poison Control Centers’
National Poison Data System (NPDS): 33rd Annual Report." Clinical Toxicology54.10 (2017): 924-1109.

7STRATEGIC MARKETING MANAGEMENT
the total current assets by the total current liabilities. The company of Caltex Australia has a
current asset for the year 2018 amounted to $ 2,727,623 and total current liabilities
amounting to $ 2,358,669 that makes the current ratio to be 1.15 that is more than 1 which
represents a sound profitability.

8STRATEGIC MARKETING MANAGEMENT
References
Chen, Wanqing, et al. "Annual report on status of cancer in China, 2011." Chinese journal of
cancer research 27.1 (2015): 2.
Mowry, James B., et al. "2015 Annual Report of the American Association of Poison Control
Centers’ National Poison Data System (NPDS): 33rd Annual Report." Clinical
Toxicology54.10 (2017): 924-1109.
Buehlmaier, Matthias MM, and Toni M. Whited. "Are financial constraints priced? Evidence
from textual analysis." (2017).
Bernile, Gennaro, Vineet Bhagwat, and P. Raghavendra Rau. "What Doesn't Kill You Will
Only Make You More Risk‐Loving: Early‐Life Disasters and CEO Behavior." The Journal of
Finance 72.1 (2018): 167-206.
Patelli, Lorenzo, and Matteo Pedrini. "Is tone at the top associated with financial reporting
aggressiveness?." Journal of Business Ethics 126.1 (2015): 3-19.
He, Guanming. "The effect of CEO inside debt holdings on financial reporting
quality." Review of Accounting Studies 20.1 (2015): 501-536.
Barkemeyer, Ralf, et al. "CEO statements in sustainability reports: Substantive information or
background noise?." Accounting Forum. Vol. 38. No. 4. Elsevier, 2014.
Kirklin, James K., et al. "Seventh INTERMACS annual report: 15,000 patients and
counting." The Journal of Heart and Lung Transplantation 34.12 (2015): 1495-1504.