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Performance Analysis of Bega Cheese Limited

   

Added on  2021-06-14

16 Pages3442 Words53 Views
Running head: FINANCIAL INFORMATION FOR DECISION MAKINGFinancial information for decision makingName of the studentName of the universityStudent IDAuthor note

1FINANCIAL INFORMATION FOR DECISION MAKING1.Executive summaryThe main objective of the report is to analyse the performance of Bega Cheese Limitedthrough various measures like profitability ratios, efficiency ratios, liquidity ratios andgearing ratio. For the purpose of analysis this report will take into consideration theperformance of the company over the years from 2014 to 2016. It has been identified fromthe report that though the profitability ratio of the company significantly deteriorated over theyears from 2014 to 2015, the company was able to improve the ratio during the year 2016.The liquidity ratio of the company reveals that the company is efficient in paying its shortterm dues with the current assets of the company. Furthermore the gearing ratio of thecompany is representing that the debt of the company is lower as compared to the assetproportion. Further it is identified that the company is efficient in generating revenue from itsasset, converting its receivable into cash and selling or replacing it inventory over the specificperiod of time. Therefore it can be stated from all the facts that the company’s financialhealth is strong and sustainable. .

2FINANCIAL INFORMATION FOR DECISION MAKINGTable of Contents1.Executive summary.............................................................................................................12.Introduction.........................................................................................................................43.Ratio calculation and interpretation....................................................................................5Profitability ratio........................................................................................................................5Return on shareholder’s equity..............................................................................................5Return on total asset...............................................................................................................6Net profit margin....................................................................................................................6Efficiency ratio...........................................................................................................................6Inventory turnover..................................................................................................................7Account receivable turnover..................................................................................................7Asset turnover............................................................................................................................8Liquidity ratio.............................................................................................................................8Current ratio...........................................................................................................................9Quick ratio..............................................................................................................................9Gearing ratio...............................................................................................................................9Debt to asset ratio –..............................................................................................................10Gearing ratio.........................................................................................................................104.Conclusion........................................................................................................................11

3FINANCIAL INFORMATION FOR DECISION MAKINGReferences................................................................................................................................12Appendix..................................................................................................................................14

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