Financial Analysis of AMP Limited

Financial Analysis

FINANCE 1
Abstract
The main aim of this report is to analyze the financial statement of the company. In this report,
the work has been done on the AMP Limited. In this report, the liquidity and capital structure
ratio has been evaluated to determine the efficiency of the company. As per the liquidity and
capital structure ratio, it is observed that the company operates the business effectively as the
liquidity position is strong. As per the non-current analysis, it is observed that the non-current
asset is increasing at the initial level but suddenly it is decreasing in the year 2018. According to
the analysis, it depicts that the company invests less in fixed assets which is beneficial for the
company. In the sensitive analysis, three cases have been analyzed regular, worst and best to
determine the profitability of the company. The PE Ratio reflects the good position of the
company in the market. At the end, it is recommending that the company has to more focus on its
liabilities in order to improve effectiveness.

FINANCE 2
Introduction
Financial Analysis is the process of evaluating business, budgets, projects, and the other finance
related entities to examine the performance and suitability. Financial analysis is used to evaluate
the financial position of the company. There are many techniques or methods are used by the
companies to evaluate the position of the organization in the financial terms. It is required to
evaluate the financial position of the company in the market before expanding the business or
developing the strategies to grab the market share (Robinson, Henry, Pirie, and Broihahn, 2015).
In the process of financial analysis, all the financial information is gathered to measure the
financial performance of the company. The financial information helps the company to provide
the information to the investors while investing. The main purpose of this report is to understand
the concept of financial analysis. In this report, AMP Limited has been taken into consideration
to analyze the financial performance of the company.
In the beginning of this report, the financial analysis will be done by evaluating the financial
ratio of the company of three years. Further, the non-current analysis will be done by comparing
the value of assets from the last three years. After that, the scenario analysis, PE ratio, shares and
bond will be evaluated. At the end, recommendation will be given in order to improve the
business.
Financial Analysis
Description
AMP Limited is a financial services company which operates in two countries such as Australia
and New Zealand. The company was established in the year 1849 as a non-profit life insurance