Financial Analysis And Assessment Of Bapcor Limited

Financial Analysis And Assessment Of Bapcor Limited1
GROUP ASSIGNMENT: FINANCIAL ANALYSIS AND ASSESSMENT OF
BAPCOR LIMITED
Name and Student ID Number
Unit Code – ACC60008
Unit Name
Lecturers
Word Count: 3620 word

Financial Analysis And Assessment Of Bapcor Limited2
Table of Contents
Executive Summary................................................................................................................3
Bapcor Overview.....................................................................................................................4
Financial Ratio Analysis.........................................................................................................4
Profitability...........................................................................................................................5
Gross Margin.....................................................................................................................5
Net margin.........................................................................................................................6
ROA...................................................................................................................................7
ROE...................................................................................................................................7
Efficiency.............................................................................................................................8
Asset turnover....................................................................................................................8
Inventory Turnover............................................................................................................9
Receivable turnover.........................................................................................................10
Liquidity.............................................................................................................................10
Current ratio....................................................................................................................11
Quick ratio......................................................................................................................11
Solvency.............................................................................................................................12
Debt to equity ratio........................................................................................................12
Debt ratio........................................................................................................................13
Interest coverage............................................................................................................14
Share market performance................................................................................................14
Earnings per share..........................................................................................................15
P/E ratio..........................................................................................................................15
Conclusion.............................................................................................................................16
Recommendation....................................................................................................................17
REFERENCES......................................................................................................................19

Financial Analysis And Assessment Of Bapcor Limited3
Executive Summary
The assignment encompassed thorough financial analysis of Bapcor Limited over
the past three years. It entails assessment of the company profile in terms of history,
strategy, current market, current size as well as its current products. It also presents
assessment of the company’s profitability, efficiency, liquidity, solvency, as well as
share market performance over the past three years. Basically, based on the analysis,
it was found out that Bapcor was financially stable over the past three years. This
was signified by its increased and relatively high gross profit margin. In essence,
was found out that Bapcor was profitable enough in the last three years starting
2016. This is based on its relatively high net margin, ROE and ROA over the years.
Additionally, it was found out that Bapcor management are efficient enough on how
they handle and utilizes the company equity and assets as well as how they collect
money from debtors on time. Further, it was found out that Bapcor is financially
stable and is able to settle its long-term as well as its short-term debts without any
difficulties once they are due. This is due to relatively the company’s low debt and
debt to equity ratios as well as it significantly high interest turnover ratio. Generally,
based on the financial analysis, it was established that Bapcor is financially stable
and is performing in consistent with the market expectations. Therefore, it is
recommendable for potential investors willing to get value for their money to invest
in the company.

Financial Analysis And Assessment Of Bapcor Limited4
Bapcor Overview
Bapcor is usually the largest Australian provider of the automotive aftermarket
accessories, parts, automotive services and equipment as well as motor vehicle
servicing (Bapcor 2018) . The company has three main segments, that is, specialist
wholesale, trade as well as retail. Trade segment comprises of the Burson Auto Part
as well as Precision Automotive Equipment unit. This division is the chief supplier
of the automotive aftermarket fragments as well as usable to the trade yards for
vehicle servicing and repairs and the automotive yard tools like scanning apparatus
and vehicle hoists (Bapcor 2017) . Retail segment on the other hand comprises of the
commercial divisions which are retail client fixated, and encompasses Autopro, Car
Parts retail stores brand, Autobarn, Sprint Auto Parts, as well as ABS and Midas
workshop service branding. Conversely, specialist wholesale division comprises of
operations which specialize in the automotive aftermarket wholesale and
encompasses Opposite Lock and Bearing Wholesalers as well as AAD business. In
other words, is an Australian automotive firm that deals with distribution of
consumable and automotive aftermarket parts used in repair and servicing of
vehicles. The company also encompasses sales of the maintenance and accessories
products to the vehicle owners across the globe (Bapcor 2016) .
Basically, Bapcor is a publicly listed firm, deriving most of its revenues from
distribution and sale of the aftermarket accessories and parts for vehicles as well as
from vehicle servicing. It operates in Thailand, New Zealand and Australia with it
headquarter being in Preston, Victoria (Bapcor 2018) .
Financial Ratio Analysis
This entails mathematical or quantitative comparison of the items in the financial