Financial & Economic Interpretation and Communication Article 2022

Financial & Economic Interpretation and
Communication

Executive summary
Origin energy limited is an Australian company that is involved in the energy sector. The
main income-generating a source of the company is the electricity supply which is
undertaken by the business. Major sections in which the investments are made by the
company include energy markets, exploration and production, and Australia Pacific LNG.
There is renewable energy that is provided and in this, there is the use of solar, storage and
wind technologies (Origin Energy Limited, 2019). The electricity is developed with the help
of various sources which are available. The analysis for the financial and non-financial
aspects will be carried in relation to the company in which all the areas will be covered.
Analysis
The company is operating and in order to make it attain all the targets, it will be required that
proper analysis shall be performed. The company provides various financial results and they
will be taken into account for the making of decisions and analyzing the position in the
current period.
Particulars 2019 2018 Variance
Profit/(loss) 1211 280 333%
Revenue 14727 14604 0.84%
Debt 5417 6529 -17%
EBITIDA 3232 2787 16%
Free cash flow 1539 1955 -21%
ROCE 9.1% 7.7% 1.4%
The major financial results which are required for the performance of the analysis have been
collected and are presented above. It can be seen that the profits of the company are
increasing at a high level and there is a rise of 333% in comparison to the previous year
(Origin Energy Limited, 2019). The revenues have increased but not at that level and there is
a slight rise in the same. The free cash flows have declined by 21% and also the increase is
attained in ROCE with 1.4%.
Interpretation
The changes which are taking place in the financial position of the business have been
identified above. There is a high change which is made in the profits of the company and the
same is due to the decrease in the expense and increase in the number of revenues. The cash