Financial Analysis of Premier Investment Limited

Financial Analysis

FINANCE 1
Executive Summary
The main aim of this report is to learn the concept of financial analysis of the position of the
company. The financial ratio of the company has been evaluated to analyze the financial position
of the organization. As per the evaluation of Premier Investment Limited, it is observed that the
company can grow the business at the international level. The net profit of the company is
increasing which indicates that it has higher level of stability in the market. As per the non-
financial information, the company grows at the global level due to which the sales value is
increasing.

FINANCE 2
Contents
Company and Industry Background...................................................................................... 3
Footnotes for calculating ratios:........................................................................................... 3
Assessment of other relevant information............................................................................... 6
Conclusion..................................................................................................................... 7
References..................................................................................................................... 8

FINANCE 3
Company and Industry Background
Premier Investment Limited is an Australian based company which operates the business in two
segments such as investment and consumer products The Company currently retail conglomerate
and also holds a 28.06% stake in electrical consumer’s products manufacturer Breville Group
Limited. It was founded by the Kimberly Family which is opened in Chapel Street Melbourne in
the year 1970. There are 6500 people that work with the company to operate with the seven
unique brands.
Footnotes for calculating ratios:
Financial Analysis is the process of evaluating the budgets, projects and the other financial
statements of the organization to evaluate the financial position and stability. In this section of
the report, the analysis has been done by evaluating the different ratios (Robinson, Henry, Pirie,
and Broihahn, 2015). Financial statements of Premier Investment were prepared accurately as
per the understanding of financial accountant. The financial statements are used while evaluating
the ratios such as comprehensive income statement, balance sheet and cash flow statement.
There are different ratio’s has been evaluated by using the financial statements below:
Profitability Ratio:
Profitability ratio of the company defines that the company ability position to generate the
earnings relative to its revenue, operating cost, balance sheets and the other financial statements.
The profitability ratio indicates that the position of the Premier Investment is constant from the
last three years such as 2016, 2017, and 2018. The profitability ratio of the company contains the
gross profit margin and profit margin ratio. As per the evaluation of Gross profit margin, it has