Financial Management: Analysis of Commonwealth Bank of Australia

Financial Management

Table of Contents
Executive summary.........................................................................................................................3
1. Introduction..................................................................................................................................4
1.1 Background and business......................................................................................................4
2. Company Analysis.......................................................................................................................4
2.1 Financial statements, Current financial performance, economic outlook.............................4
3. Ratio Analysis..............................................................................................................................5
3.1 Profitability ratios..................................................................................................................5
3.2 Efficiency ratios.....................................................................................................................7
3.3 Liquidity ratios.......................................................................................................................9
3.4 Gearing ratios.......................................................................................................................10
4. Recommendations and overall assessment................................................................................12
References......................................................................................................................................13
Appendices....................................................................................................................................14

Executive summary
This project report is based on the analyses of Common wealth bank of Australia; the ASX name
is CBA. In this report; financial analysis of 2 years from 2018 to 2019 has been done and support
the analysis with interpretation. The final conclusion has been made in the form of
recommendation and assessment at the end.

1. Introduction
1.1 Background and business
Commonwealth Bank was established under the Commonwealth Banking Act in 1911 and began
operating in 1912, engaged in the management of investment funds and the financial sector in
general. The Commonwealth Bank of Australia (CBA), or CommBank, is an Australian world
that holds money from organizations in New Zealand, Asia, the United States and the United
Kingdom. It provides a range of budget administrations, including retail, commercial and
institutional administrations, executives, retirement age, protection, profitability and brokerage
administrations. Commonwealth Bank is Australia's largest agency registered on the Australian
Securities Exchange since August 2015 with brands including Bankwest, Colonial First State
Investments, ASB Bank (New Zealand), Securities Commonwealth (CommSec) and
Commonwealth Insurance (CommInsure).
The bank's vision of becoming Australia's best money management association by going beyond
CBA support and a CBA approach is to see crucial open doors within its portfolio activities to
further motivate its customers, individuals and partners. In 1998 this bank was considered an
open group. The bank is headquartered in Sydney and, according to the latest reports, has more
than 1000 branches. In addition to Australia, this bank has supporters in New Zealand and parts
of Asian countries such as Indonesia, Hong Kong and Fiji.
2. Company Analysis
2.1 Financial statements, Current financial performance, economic outlook
Commonwealth Bank has revealed a net profit from operations for the 2020 Financial Year of
$7.3 billion, which indicates the proceeding with strong performance of the Group. Digital
banking is presently more ordinary than any time in recent memory, with new information
demonstrating $1.2 billion is executed through the CommBank App each and every day. Money
NPAT diminished 5% mirroring a kept testing working condition, however business essentials
stayed solid. The diminishing was driven by a 2% decrease altogether working salary, a 2%