Financial Analysis of Caltex Australia
Added on 2019-09-30
20 Pages3514 Words188 Views
Running head: FINANCIAL ANALYSISCaltex Australia limitedFinancial Analysis
FINANCIAL ANALYSIS1Table of ContentsExecutive Summary.........................................................................................................................2Introduction......................................................................................................................................3Financial Analysis...........................................................................................................................31.Liquidity: Current ratio.........................................................................................................32.Profitability: Net profit margin and return on total assets....................................................43.Capital structure: Debt ratio and interest coverage ratio......................................................4Market value: Price-Earnings ratio..................................................................................................5Share valuation- Constant Dividend Discount Model.....................................................................6Recommendations............................................................................................................................7Conclusion.......................................................................................................................................8References........................................................................................................................................9Appendix........................................................................................................................................10
FINANCIAL ANALYSIS2Executive SummaryThe Caltex Australia limited is the Australian public company. The financial analysis of the company is done on the past five year financial data of the company. The liquidity of the company is higher than the financial industry average which shows that the liquidity of the company is satisfactory which enhance the investment decision of the company. The capital structure of the company is identified through debt-equity ratio and interest coverage ratio. The capital structure bias equity and the debt are majorly contributed to the structure. The price-earnings ratio of the company is high which shows the company can make the investment decision. The dividend decision model shows analysis shows that the investment is not profitable.
FINANCIAL ANALYSIS3IntroductionIn this present paper, we will analyze the financials of Caltex Australia limited. The financial analysis is done on the basis of financial ratios, price-earnings ratio for analyzing the market value and analyzing the share valuation through constant dividend discount model. After analyzing the data recommendation and conclusion has been made.The Caltex Australia limited is the public company which is ranked 13 out of 2,000 top companies in Australia. The company deals in supplying and marketing of petroleum and fuel related products in Australia. The company sources crude oils to the global market. The marketing activities of the company include service station operations and convenience stores. The chief executive of the company is Mr. Julian Segal who is also the managing director of company. The revenue of the company in 2015 is $20,056,420,000. The total employees of the company are 3,080. The other directors are eight apart from the managing director. The companywas incorporated in 1900 as the Australian agent and in 2015 the company sold its fifty percent shares in Caltex Australia for $4.62 Billion. The company operates in Australia and Singapore and it's headquarter is in Sydney. The company is listed on Australian stock exchange under the ticker CTX. The high prices of fuels and increase in the volume the increase the revenue of the company in the past five years. Financial AnalysisThe financial analysis of the company is done on the previous five-year data which is taken fromthe report IBIS World 2015. The financial analysis is done through analyzing the ratios from 2011-15.
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