The Introduction to Financial Management
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Added on 2021-05-30
The Introduction to Financial Management
Added on 2021-05-30
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Running Head: Financial Management 1Project report: Financial Management
Financial Management 2Executive SummaryThe report has been prepared to evaluate the capital structure of Australian company, Coca cola Amatil. For calculating and identifying the total capital structure of an organization, WACC of the company has been calculated as well as the study has been done on the gearing ratio of the company. The WACC techniques evaluate about the total cost of the capital of the company and the gearing ratio explains about the total risk position of the organization. On the basis of executive summary, it has been found that the capital structure position of the company is quite strong.
Financial Management 3ContentsIntroduction.......................................................................................................................4Coca Cola Amatil.............................................................................................................4WACC..............................................................................................................................5Explanation and Judgment................................................................................................6Gearing ratios and difficulties..........................................................................................7Findings............................................................................................................................7Recommendation..............................................................................................................8Reflection..........................................................................................................................8References.......................................................................................................................10Appendix.........................................................................................................................11
Financial Management 4Introduction:Financial management is a very effective and efficient way to manage the operations of the comapny and assists organization to achiever the objectives of the company. Financial management is associated with the top level management of the company. Capital structure isalso a part of financial management of an organization. Capital structure is the combination of various sources which has helped the company to raise the funds. Capital structure is a way through which an organization fiancés it resources through debt, equity and hybrid securities. Capital structure of an organization explains about the total capital of the organization as well as it briefs that how are the position of the company in terms of risk and how much cost are bear by the company for the total capital. In the report, capital structure of Coca cola Amatil has been discussed. For calculatingand identifying the total capital of an organization, WACC of the company has been calculated as well as the study has been done on the gearing ratio of the company in this report to identify the performance of the company. Few suggestions have also been given to the company. Coca Cola Amatil:Coca cola Amatil is an Australian company which is operating its business is non alcoholic beverages industry. The company has been awarded as largest company in the non alcoholic beverages industry. The company is the subsidiary company of Coca cola. It is an international company which is running its business in 5 more countries except the Australia which are New Zealand, Fiji, Samoa and Papua New Guinea and Indonesia. Company has diversified the product line a lot to capture and grab the entire market. The current products of the company are Coca cola, Fanta, sprite, canned tomatoes, mother, Sprite zero, spreads, Coca cola zero, diet coke etc. (Home, 2018). Currently, the company is following the strategyof diversification and the corporate social responsibilities of the company are also better. The annual report of the company expresses that the financial performance of the company has been better. Currently, the total turnover of the company is $ 4881 million which has been increased from last year. The annual reports of the organization brief the changes into the capital structure of the organization in current year from last year. Annual report (2017) explains about14700 people who are employed by the company to manage the operations and
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