Comparative Analysis of Financial Performance and Position of Boral Limited and BCI Minerals Limited

Running head: CORPORATE ACCOUNTING
Corporate Accounting
Name of the Student:
Name of the University:
Authors Note:

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CORPORATE ACCOUNTING
Executive Summary:
In order to compare the financial performance and position between two entities one
needs to analyse the financial reports of two companies. The financial reports comprising of
income statement, statement of financial position, changes in equity statement, statement
showing cash flows and notes to account. Evaluating these statements will provide significant
information to the person evaluating these statements. Based on such information one can
compare the financial performance and position between those two companies. A detailed
analysis of financial statements of two companies of Boral Limited and BCI Mineral Limited
shall be conducted to compare and contrast the two companies’ performance and position.

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CORPORATE ACCOUNTING
Contents
Executive Summary:........................................................................................................................1
Introduction:....................................................................................................................................3
Comparison of financial performances:...........................................................................................3
Boral Limited:..............................................................................................................................3
BCI Minerals Limited:.................................................................................................................5
Comparative analysis of financial performance:.............................................................................7
Financial position comparative analysis:.......................................................................................11
Liquidity position comparison of two companies:........................................................................14
Comparative analysis of long term solvency position of the two companies:..............................17
Conclusion:....................................................................................................................................18
References:....................................................................................................................................20

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CORPORATE ACCOUNTING
Introduction:
Brief introduction about Boral Limited and BCI Mineral Limited at the beginning of the
document will provide a frame of reference to the readers. This would help in analysing the
financial information of the two companies better.
Founded in Australia, Boral Limited is a company that manufactures and supplies building and
construction materials. Company’s headquarter is located in Sydney, Australia and has three
operating divisions, these are Boral Australia, Boral North America and USG Boral. The
company is a listed in the Australian Securities Exchange (ASX).
BCI Material Limited is another ASX listed entity operates in Iron and Steel industry in
Australia. The company is engaged in mining activities to produce and explore iron ore, gold and
base metals. The company specifically serves the agriculture and minerals industries in the
country.
Comparison of financial performances:
In order to compare the financial performances of the two companies the income
statements of the two companies shall be compared. The income statements of Boral and BCI
Minerals from 2014 to 2017 shall be considered to compare the financial performance of the two
companies (Churet and Eccles, 2014).
Boral Limited:
The extract of the income statement of Boral Limited for the 4 year periods from 2014 to
2017 is provided below:
Amounts are in AUD in millions 2014- 2015-06 2016- 2017-

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CORPORATE ACCOUNTING
06 06 06
Revenue 4,455.
00
4,298.0
0
4,311.
00
4,258.
00
Cost of goods sold 3,231.
00
3,039.0
0
2,927.
00
2,858.
00
Gross profit 1,224.
00
1,258.0
0
1,384.
00
1,399.
00
Operating expenses 1,318.
00
2,309.0
0
1,369.
00
1,325.
00
Earnings before interest and tax (94.
00)
(1,050.0
0)
15.
00
75.
00
Interest Expense 85.
00
76.
00
70.
00
75.
00
Other income (expense) 276.
00
1,415.0
0
339.
00
301.
00
Earnings before taxes 97.
00
288.
00
284.
00
301.
00
Income tax expense (9.
00)
45.
00
32.
00
51.
00
Net income from continuing 106. 243. 252. 250.

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CORPORATE ACCOUNTING
operations 00 00 00 00
Before comparing the financial performance of the two companies a brief discussion on the
financial performance of Boral Limited on the basis of above information will enlighten us about
the financial performance of the company over the years. The overall revenue of the company
has remained almost constant at and around the mark of $4,300 million as can be seen from the
above information (Storey et. al. 2016). However, due to efficient management of the company
with each passing year the amount of gross profit has increased significantly. . In 2017 the
company earned a gross revenue of $1,399 million. A year ago in 2016 despite higher amount of
revenue the company managed to earn a gross profit of $1,384 million. The net income of the
company has also increased with ever improving management of the company. In 2017 the
company has earned a net income of $250 million from continuing operations as compared to
$106 million in 2014. Thus, within a period of 3 years the company has managed to earn almost
150% more profit from its core business operations. Taking into consideration it can be said that
the company has performed exceedingly well over the years (Revelli and Viviani, 2015).
BCI Minerals Limited:
Having the financial information about the performance of the company over the last few
years would go a long way to effectively compare the financial performance of the two
companies. The income statement of BCI Minerals is provided below containing the amount of
revenue and expenditures of the company from 2014 to 2017.
Amounts are in AUD in millions 2014-
06
2015-
06
2016-
06
2017-
06