Finance for Business: Analysis of Brambles Ltd

Running head: FINANCE FOR BUSINESS
Finance for business
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1FINANCE FOR BUSINESS
Abstract
Aim of the report is to highlight core activities of Brambles Ltd, analysis of the market
under which it is operating and the factor that may help it to obtain competitive
advantage. This report will even look to assess the performance of the organization on
the basis of the results that would be attained by calculating different kinds of ratios like
profitability and efficiency ratios. The report will even identify the securities that are
marketable for the organization and thereafter discuss about the securities in order to
manage cash. The report will also highlight the systematic as well as unsystematic risks
associated with the company like macro – economic condition, Industry trend,
competitors and safety that may adversely impact the entity’s financial performance. It
will further look upon the dividend policy and dividend payout ratio of the entity.

2FINANCE FOR BUSINESS
Table of Contents
I. Introduction.................................................................................................................4
II. Financial Analysis.......................................................................................................4
2.1 Description of Brambles Ltd.....................................................................................4
2.2 Calculations and analysis of the performance ratios...............................................5
Profitability ratio..........................................................................................................5
Efficiency ratio............................................................................................................6
2.3 Cash management cycle.........................................................................................8
2.4 Sensitivity analysis...................................................................................................8
2.5 Systematic and unsystematic risk..........................................................................10
2.6 Dividend policy.......................................................................................................10
III. Recommendation letter..........................................................................................11
IV. Conclusion.............................................................................................................12
Reference List..................................................................................................................13

3FINANCE FOR BUSINESS
I. Introduction
This report has been prepared in order to provide a proper outline of the main
and the significant activities that are performed by Brambles Limited. The report will look
to highlight the activities that are performed by the company in the market and the sort
of strategies that have been performed historically by the company in order to attain
competitive edge. This report will even look to assess the performance of the
organization on the basis of the results that would be attained by calculating different
kinds of ratios like profitability and efficiency ratios. The report will even identify the
securities that are marketable for the organization and thereafter discuss about the
securities in order to manage cash (Revelli and Viviani 2015). The next course of action
of the report will undertake sensitivity analysis by making use of the available data. The
report will even highlight the systematic and unsystematic risks associated to the
organization that may have significant level of impact on the organizational
performance. Furthermore, the dividend payout ratio will be analyzed as well and
thereby the dividend features of the company will be known.
The selected company Brambles Limited is an Australian based organization that
has its specialization in the pooling of the unit loaded tools and machines and various
related services that concentrates on the outsourced pallet management, containers
and crates. The organization is listed within Australian Securities Exchange. The
organization was established in the year 1875 and has its headquarters in Sydney
Australia (Brambles Corporate Site 2019). The company has more than 14,000
employees and has their own crates, pallets and containers that is over 500 million and
this service is maintained with the help of an effective network with the help of over 850
service centres. The organization for the current time period has been performing in an
effective manner and therefore this paper will look to assess the financial performance
with the help of which the profit of the company will be known (Brambles.com 2019).
II. Financial Analysis
2.1 Description of Brambles Ltd
The main purpose of Brambles has been to connect with human beings with their
daily essentials. With the help of their reuse and share model, the company transfers
various goods for people in several places than any other companies. In this manner,
the company is able to contribute for a future that will be sustainable. The company
being a pioneer of sharing economy, the organization has generated one of the
sustainable logistics businesses globally (Brambles.com 2019)
The company have their own circular business value and model and the
company continues to reuse and share the biggest pool of the containers and crates.
This assists the company to serve their customers and thereby reducing the effect on
the environment and enhancing effectiveness and safety of supply chain all over the
globe.