Financial Analysis of AMP Company

RUNNING HEAD: Financial analysis of AMP Company
1
Name of the student
Topic- Financial analysis of AMP Company
University name

Table of Contents
Introduction............................................................................................................... 3
1. Description of AMP Limited................................................................................3
2. Governance and Ownership structure.........................................................................4
3. Performance ratio analysis of AMP Limited.................................................................7
Short term solvency ratio........................................................................................... 7
Proving the equation.......................................................................................... 9
Long term Solvency ratios.......................................................................................... 9
Asset utilization..................................................................................................... 10
Profitability ratios.................................................................................................. 11
Market value ratios................................................................................................. 13
4. Share price graph of the AMP Limited.....................................................................14
4.1 Graph reflecting the share price movement of AMP Company and All ordinary share price
index 14
4.2 The comparison between the Share price movement of AMP Limited and share price movement
of all ordinary stock exchange................................................................................... 14
5. Announcements.................................................................................................. 16
6. Research via internet........................................................................................... 16
6.1 Beta calculation........................................................................................... 16
6.2 Computation of required rate of return by using CAPM method.....................................17
6.3 Determining the investment method (Conservative investment).....................................17
7. Computation of the weighted average cost of capital....................................................18
7.1 Computed Cost of Capital through Capital Assets Pricing model...............................18
7.2 Implications that a higher WACC on investment decision............................................18
8. Debt ratio consideration of AMP Limited..................................................................19
8.1 Stable Debt to equity ratio of company.......................................................................19
Dividend policies of company..............................................................................20
Letter of recommendation................................................................................... 20
Conclusion........................................................................................................... 21
9. References........................................................................................................ 22
10. Appendix...................................................................................................... 24

Financial analysis of AMP Company 3
Introduction
It is evaluated that management and directors of company needs to make effective use
of financial tools which could be used to analysis the financial performance of Company.
The ratio analysis, top down analysis, bottom up analysis and du Pont analysis could be used
to evaluate the financial performance of company. In this report, capital structure of the
company and profitability of the company has been analyzed by using the effective strategic
financial tools. .
1. Description of AMP Limited
It is evaluated that the AMP Australia is the New Zealand Company which has been
providing superannuation benefit, investment products and financial and banking service. It
has been providing its financial and advisory services to investors to make the good value on
their investment (AMP limited. (2018).

2. Governance and Ownership structure
The main CEO of Company is Craig Meller who undertakes all the strategic and managerial
decisions to strengthen the business functioning of organization (AMP Limited. 2017).
Rank Name Ag
e
Company Compensation shares
2 George R.
Roberts
74 KKR & Co LP 113,712 44,650
3 Henry R. Kravis 74 KKR & Co LP 113,434 44,650
4 Hock E. Tan 66 Broadcom Inc 103,211 98,323
5 Rob Roy 49 Switch Inc 94,638 89,444
6 Alex A.
Molinaroli
Johnson Controls
International PLC
78,282 9,042
7 Michael Rapino 52 Live Nation
Entertainment Inc
70,616 58,632
8 Yasuhiro Sato 65 Mizuho Financial
Group Inc
70,000 0
9 Mario J. Gabelli 75 GAMCO Investors
Inc
69,414 0
10 Leslie Moonves 68 CBS Corp 69,333 43,696

Financial analysis of AMP Company 5
11 Christopher
Terrill
50 ANGI Homeservices
Inc
68,798 3,800
12 Andrew N.
Liveris
63 DowDuPont Inc 65,689 12,174
13 Jeffery Fairburn 51 Persimmon PLC 63,697 0
14 W. Nicholas
Howley
65 TransDigm Group Inc 61,023 0
15 Douglas R.
Lebda
48 LendingTree Inc 59,591 0
16 Simon Anthony
Peckham
55 Melrose Industries
PLC
57,849 0
17 Douglas S.
Ingram
55 Sarepta Therapeutics
Inc
56,866 11,608
18 Thomas E.
Dooley
Viacom Inc 53,648 0
19 Ronald Clarke 62 Fleetcor Technologies
Inc
52,644 15,127
20 Stephen Kaufer 55 TripAdvisor Inc 47,933 28,578
21 Gregory B.
Maffei
56 Qurate Retail Inc
QVC Group
47,810 2,293

22 Stephen B Burke 59 Comcast Corp 46,537 5,338
23 Brian
Duperreault
70 American
International Group
Inc
43,087 11,157
24 Kathleen
Eisbrenner
NextDecade Corp 43,086 42,145
25 Dirk Van de Put 57 Mondelez
International Inc
42,443 30,002
(Yahoo Finance, 2017).
There are several shareholders who have bought the shares in AMP Limited. However, there
are main five shareholders
 HSBC Custody.
 JP Morgan
 Citi Corp
 National Nominee