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The Introduction to Financial Management

Added on - 30 May 2021

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Running Head: Financial Management1Project report: Financial Management
Financial Management2Executive 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 anorganization, WACC of the company has been calculated as well as the study has been doneon the gearing ratio of the company. The WACC techniques evaluate about the total cost ofthe capital of the company and the gearing ratio explains about the total risk position of theorganization. On the basis of executive summary, it has been found that the capital structureposition of the company is quite strong.
Financial Management3ContentsIntroduction.......................................................................................................................4Coca Cola Amatil.............................................................................................................4WACC..............................................................................................................................5Explanation and Judgment................................................................................................6Gearing ratios and difficulties..........................................................................................7Findings............................................................................................................................7Recommendation..............................................................................................................8Reflection..........................................................................................................................8References.......................................................................................................................10Appendix.........................................................................................................................11
Financial Management4Introduction:Financial management is a very effective and efficient way to manage the operationsof the comapny and assists organization to achiever the objectives of the company. Financialmanagement 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 combinationof various sources which has helped the company to raise the funds. Capital structure is away through which an organization fiancés it resources through debt, equity and hybridsecurities. Capital structure of an organization explains about the total capital of theorganization as well as it briefs that how are the position of the company in terms of risk andhow 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 beencalculated as well as the study has been done on the gearing ratio of the company in thisreport to identify the performance of the company. Few suggestions have also been given tothe company.Coca Cola Amatil:Coca cola Amatil is an Australian company which is operating its business is nonalcoholic beverages industry. The company has been awarded as largest company in the nonalcoholic beverages industry. The company is the subsidiary company of Coca cola. It is aninternational company which is running its business in 5 more countries except the Australiawhich are New Zealand, Fiji, Samoa and Papua New Guinea and Indonesia. Company hasdiversified the product line a lot to capture and grab the entire market. The current productsof 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. Theannual report of the company expresses that the financial performance of the company hasbeen better.Currently, the total turnover of the company is $ 4881 million which has beenincreased from last year. The annual reports of the organization brief the changes into thecapital 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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