FINANCIAL ANALYSIS REPORT FROM SCRATCH

Running head: FINANCIAL ANALYSIS REPORT
Financial analysis report
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FINANCIAL ANALYSIS REPORT
Executive summary:
The paper presents a thorough assessment of the financial performance of BHP Billiton
Limited by interpreting the recently published financial report of the company. BHP Billiton
is a leading company of resource that helps in bringing together the resources and people. It
was in year 1851, BHP Billiton has been engaged in the development and making
contribution to the communities, industry and economies of the world. The main business
activities of the company is to explore petroleum, copper and gaining access to the space that
is newly searched so that the best target of delivering deposits is tested. The objective of
preparing the financial analysis report is to identify the changes in the financial performance
of the company.

FINANCIAL ANALYSIS REPORT
Introduction:
The study is undertaken to conduct the analysis of the financial performance of one of
the companies listed on ASX. For the analysis of the financial performance, the chosen
company is BHP Billiton Limited that has witnessed a strong financial performance from
continued operations. Every organizations make use of financial and non-financial indicators
for measuring the overall performance (Ahmed and Manab 2016). BHP believes in the
development of the options for success and making the most of its portfolio for maximizing
the return and value to their shareholders.
Discussion:
The financial performance indicators used by BHP Billiton for measuring the
financial performance of the company include underlying earnings before interest
depreciation, tax and amortization, underlying profits attributable to the shareholders, net
operating cash flows. The underlying profits attributable to the shareholders of the company
increased in year 2019 to US $ 9.1 million compared to US $ 8.9 billion in year 2018
(Bhp.com 2020).
Over the past five years, BHP Billiton generated a strong cash flow and in financial
year 2019, it delivered a further US $ 17 billion. Company has six major projects under
development after the approval of gas and oil development. Direct economic contribution
included dividend, employee benefits, wages, royalties, taxes and payments to the suppliers
and voluntary social investment and the amount is recorded at US $ 46.2 billion. There was
an increase in the profit after taxation to US $ 8.3 billion in financial year 2019 as against US
$ 3.7 billion in the financial year 2018. Revenue also increased by 3% in year 2019 and this
increase in the figure is attributable to higher sales volume and higher price realized for
petroleum, iron ore and metallurgical coal. Apart from revenue and sales figure, expenditure