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Company Analysis Report Assignment

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Added on  2020-05-28

Company Analysis Report Assignment

   Added on 2020-05-28

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Company Analysis Report
Prepared for: Bega Cheese LTD
Prepared by: xxx
Company Analysis Report Assignment_1
1 EXECUTIVE SUMMARY
This report has been prepared to analyse and evaluate the financial position, financial
performance, financial stability, liquidity etc of Bega Cheese limited. This report has been
prepared to offer a conclusion to the investors about the financial position and the
performance of the company so that it becomes easy for them to make a decision about the
investment in the company or not. For this report, ratio study has been conducted. Firstly, the
introduction has been given about the company and the industry further; various ratios have
been measured to evaluate the financial position of the company.
Company Analysis Report Assignment_2
TABLE OF CONTENTS
1 EXECUTIVE SUMMARY..................................................................................... 2
2 INTRODUCTION................................................................................................ 4
3 Profitability...................................................................................................... 5
3.1 Return on shareholder equity....................................................................5
3.2 return on total assets................................................................................ 6
3.3 Net profit margin....................................................................................... 7
3.4 Gross profit margin................................................................................... 8
4 efficiency......................................................................................................... 9
4.1 inventory turnover.................................................................................... 9
4.2 settlement period for accounts receivable..............................................10
4.3 settlement period for creditors / accounts payable.................................11
4.4 asset turnover......................................................................................... 12
5 liquidity......................................................................................................... 13
5.1 current ratio:........................................................................................... 13
5.2 cash flow from operations.......................................................................14
6 financial gearing............................................................................................ 15
6.1 gearing ratio........................................................................................... 15
6.2 interest coverage.................................................................................... 16
7 conclusion/ recommendations.......................................................................17
8 references..................................................................................................... 18
9 APPENDIX A................................................................................................... 19
APPENDIX B......................................................................................................... 20
Company Analysis Report Assignment_3
2 INTRODUCTION

Profile of Bega Cheese Limited –.
Bega cheese is an Australia company which is managing its operations in dairy
industry of Australia. This company is one of the largest Australian dairy companies.
Current valuation of the company is Australian $ 775 million. Around 25% share of
Australian dairy industry is held by Bega cheese. This company has diversified its market
into various countries to grab more opportunity. Various dairy products such as cheese
yogurt, retail cheese, processed cheese, chilled food etc are offered by the company in the
Australian market (Bloomberg, 2018).
History
This company has been founded in 1899 and in 2011; it has become public
limited company. Initially, it has been founded by an agriculture corporative firm.
Currently, this company has been listed in Australian stock exchange. Earlier, this
company used to offer its services and the products into limited area. But now, it has
diversified its market.
Industry
Bega cheese is an Australia company which is managing its operations in
dairy industry of Australia. This is one of the largest Australian dairy companies.
Various companies are operating its business in Australian dairy industry, but around
25% share of Australian dairy industry is held by Bega cheese.
Company Analysis Report Assignment_4
3 PROFITABILITY
For analysing the performance and the position of Bega cheese limited, profitability
ratios have been calculated. Profitability ratios brief the investors and the financial analyst
about the net profit, gross profit position of the company in terms of equity, share capital etc.
Following is the calculation of profitability position of company:
3.1 RETURN ON SHAREHOLDER EQUITY
Return on shareholder is a measurement which analysed the performance of the stock
of a company. Following is the formula of calculating the return on shareholders’:
Return on Equity =
Graph 1:
Return on Equity (ROE) (%)
The above ratio explains that the return on equity of 2014 was quite higher but in
2015, the ratio has been lower and in 2016, company has again tried to enhance it. Through
the above graph, it has been found that return on equity position of 2016 of Bega cheese is
quite improved and it explains that the stockholders would get a god return form the company
(Annual report , 2016).
2014-2015 2015-2016
Increase/
decrease 22.923.96 3.96 8.99
= - 18.96% = +5.03%
Figure 1: Yearly Increase/Decrease on
Return on Equity (ROE) (%)
Company Analysis Report Assignment_5
3.2 RETURN ON TOTAL ASSETS
Return on total assets is a measurement which analysed the performance of the total
assets of a company in context with the total net profit of the company. Following is the
formula of calculating the return on total assets:
Return on total assets (ratio) =
Graph 2:
Return on Total Assets (%)
The above ratio explains that the return on total assets of 2014 was quite higher but in
2015, the ratio has been lower and in 2016, company has again tried to enhance it. Through
the above graph, it has been found that return on total assets position of 2016 of Bega cheese
is quite improved and it explains that the good level of total assets have been managed by the
company according to the total assets of the company.
2014-2015 2015-2016
Increase/
decrease 17.05 2.98 2.98 0.01
= - 14.07% = - 2.97%Figure 2: Yearly Increase/Decrease on
Return on Total Assets (%)
Company Analysis Report Assignment_6

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