Financial Management Analysis Report

Running head: FINANCIAL MANAGEMENT ANALYSIS
Financial management analysis
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1FINANCIAL MANAGEMENT ANALYSIS
Table of Contents
Part I – Debt valuation...............................................................................................................2
Part II – Share valuation.............................................................................................................3
Part III – Cost of capital.............................................................................................................7
Part IV – Market analysis...........................................................................................................9
Reference..................................................................................................................................10

2FINANCIAL MANAGEMENT ANALYSIS
Part I – Debt valuation
1. Short – term and long – term debt
Short term-debt – Blackmores restructured their borrowings during 2016 to the unsecured
debt with a common deed of terms with 3 banks. Short-term loan raised through the
unsecured overdraft facility from bank that is annually reviewed and becomes payable at call.
During the year 2016, total amount borrowed was amounted to $ 50,00,000, out of which $
570,000 was used and $ 44,30,000 remained unused.
Long-term debt – the long-term debt is raised by Blackmores through unsecured revolving
term of debt facility under the deed of common terms and the amount was $ 137,506,000 out
of which $ 55,446,000 was utilised and $ 82,060,000 remained unutilised.
2. Debt structure – total debt of the company is amounted to $ 17,793 ,000 out of which
approximately 100% was long-term debt
3. Industry influence – as the company belongs to retail industry and the retail industry
in Australia is flourishing rapidly the investors are interested in investing which in
turn, reduce the debt requirement of the company.
4. Cost of debt
From the financial report of the company for the year ended 30th June 2016 it is found
that the cost of debt for Blackmores is 2.8%.