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Financial Analysis of ANZ and CBA

   

Added on  2020-11-23

11 Pages2104 Words67 Views
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Financial for business-ANZ VCOMMENWEALTHBank
Financial Analysis of ANZ and CBA_1

EXECUTIVE SUMMARYThe report covers the brief description about the operations of ANZ and commonwealthbank and trend analysis have been identify with the help of financial ratios. In respective reportsensitivity analysis is performed to determine marketable securities and systematic andunsystematic risk are discussed for the selected banks. The report also summaries the calculationof dividend payout ratio and valuable recommendation are given for stakeholder.
Financial Analysis of ANZ and CBA_2

Table of ContentsEXECUTIVE SUMMARY.............................................................................................................2Table of Contents.............................................................................................................................3TASK 2............................................................................................................................................12.2. Calculation and analysis of selected performance ratios......................................................12.3 Cash management analysis....................................................................................................42.4 Sensitivity analysis................................................................................................................52.5 Systemic risk and un-systemic risk........................................................................................62.6 Dividend payout ratio and dividend policy...........................................................................6REFERENCES................................................................................................................................8
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TASK 22.2. Calculation and analysis of selected performance ratiosIt is very important to have a proper analysis of financial statements as it support inmeasuring the financial performance of company. The depth analysis ANZ bank andcommonwealth bank have been discussed for the period of 2016 to 2018. in order to completethe financial analysis of both bank valuable financial ratio are discussed in order to measureANZ bank and commonwealth bank position in context to profitability and liquidity. Liquidity ratio: These ratio are mainly calculated to determine the ability of company as they are able topay its short term liabilities. It is also used by stakeholder holder to determine the liquidityposition of company in specific time. In order to find the liquidity of both bank current ratio andquick ratio are calculated: Current ratio: Current assets/ current liabilitiesName of bank 201620172018Commonwealth bank 0.170.160.18Australia and NewZealand Bank0.290.270.33Quick ratio: Total current assets- Inventory- prepaid expenses/Current liabilities. It is another form of liquidity ratio as it describe about the liquidity position in moredescriptive manner as it does not includes prepaid expenses and inventory. Name of bank 201620172018Commonwealth bank 0.160.170.14Australia and NewZealand Bank0.280.230.24From the above, calculation it has been observed that Australian and New Zealand bankis more able to pay it liabilities from its current assets in last three years. Profitability ratio:In business context, the profitability ratio helps to display the profitable position ofcompany of company within a specific time frame. This ratio is used by investors to extract outthe profit company used to earn on their revenues, total assets and actual investment made by1
Financial Analysis of ANZ and CBA_4

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