FINANCIAL MANAGEMENT.

FINANCIAL MANAGEMENT
FORTESCUE METALS

Working capital management
policies of the company:
 the amount has decreased when compared over the period of
years from 2014 to 2018
 The current ratio shows a decrease which could mean liquidity
issues for the company in the near future
 The calculation for quick ratio shows an increase which could
mean liquidity stability for the company in the near future

Working capital management
policies of the company
contd.. In respect of cash conversion cycle, the number of days shows a
decrease which is good for the company since it indicates that
that the company is now taking lesser amount of time for the
purposes of converting investment into cash
 The company has made more investments into the non-current
assets of the company. This means lesser liquidity for the
company

Capital structure
determination policy of the
company Equity ratio: calculated ratio shows that the company has 58%
capital employed which belongs to the shareholders equity
 Debt to equity ratio: The calculated ratio shows a higher ratio
which means that the company is more exposed to risk
 Debt ratio: the calculated ratio, the ratio though shows a
decrease but more debt should be reduced so that this % further
comes down

Factors affecting capital
structure:
 Profitability
 Liquidity
 Control
 Competition
 Nature of the industry
 Timing of the issue
 Characteristics of the company

Company’s earnings
distribution and divided pay
out ratios: The company does not employ any specific or any fixed policy of
dividend.
 A certain % should be fixed for the purposes of distributing them
as profits

Corporate governance
structure of the company:
 Tranparency
 Integrity
 Empowerment
 Corporate accountability
 Stewardship

Management of the company:
 No change after year 2014.
 Executives in year of 2018:
 Andrew Forrest AO: Chairman
 Mark Barnaba AM: Lead independent director/ Deputy chair
 Elizabeth Gaines: Chief Executive Officer/Managing Director
 Sharon Warburton: Deputy Chair
 Lord Sebastian Coe CH,KBE: Non-Executive Director
 Jennifer Morris OAM: Non-Executive Director

Management of the company
Contd..:
 Dr Jean Baderschneider: Non-Executive Director
 Penny Bingham-Hall: Non-Executive Director
 Dr Cao Zhiqiang: Non-Executive Director
 Cameron Wilson: Company Secretary
 Alison Terry: Group Manager Corporate Affairs and Joint Company
Secretary
 Cao Huiquan: Former Non-Executive Director

Relationship between structural
policies & financial management of the
company:
Areas on which company pays concentares on:
 Driving collaboration
 Change in the research of global cancer
 Ending the modern slavery
 Creation of the parity for the Indigenous Australians
 Ensuring that all children in the country of Australia reach their
full potential
 Nurture the new talents
 Generation of the world changing research and innovation.