Financial Reporting Assignment | Financial Analysis Report

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Executive Summary
Financial reporting is an important aspect in organizations management. Financial reporting
enables users of financial statement to make informed decisions regarding the organization
financial performance and position in a financial year (Hoitash, and Bedard, 2009). Financial
statements contain records from all operations that are undertaken in the organization during a
particular time. The following report contains a financial analysis of Amcor Company to
evaluate it financial performance and position trend between 2014 and 2016 financial years. The
report analysed the income statement, statement of financial position and cash flow statement.
The report found that the Amcor has an increasing trend in sales per financial year and has made
a lot of investment to take advantage of the new market opportunities in the industry. The report
concluded that Amcor Limited is financially healthy.

Table of Contents
Introduction................................................................................................................ 4
Company information.............................................................................................. 4
Industry Situation and Company Plans.......................................................................5
Financial Statement Analysis...................................................................................... 5
Statement of financial performance........................................................................5
Statement of financial position................................................................................6
Statement of cash flow............................................................................................ 8
Ratio Analysis............................................................................................................. 8
Liquidity analysis..................................................................................................... 8
Profitability Ratios................................................................................................... 9
Long term Solvency............................................................................................... 10
Cash flow Adequacy.............................................................................................. 10
Market strength ratio............................................................................................ 11
Conclusion................................................................................................................ 11
References............................................................................................................... 12
Appendix.................................................................................................................. 14
Financial Analyses of Amcor
Limited, Australia

Introduction
Financial reports are formal records of an entity’s financial activities and position. Financial
reports communicates to entity stakeholders about the financial position, cash flow, and results
from operations in a specific period of time (Deegan, 2013). They purposely report the financial
progress of an organization. Financial reports information is used by entity stakeholders’ to make
informed financial decisions. Users of financial information are the managers, lenders,
regulators, employees, and owners (Chen et al., 2010). The basic financial statements of financial
reporting are the balance sheet, income statement, and cash flow statement. In Australia,
financial reporting is regulated by the Australian Securities and Investments Commission
(ASIC).
The following report will analyze Amcor financial reports to assess it financial health using it
annual reports. This will involve analyzing financial statements, ratio analyses, and industry
situation. The following report uses 2016 FY, 2015 FY, and 2014 FY in the annual reports
sourced from the company’s website.
Company information
Amcor Limited is a multinational packaging company based in Australia. The company is listed
in Australian Stock exchange as AMC. The company specializes in rigid and flexible packages
for products such as health care, beverage, tobacco, and food industry. The company was started
in 1986. The company has it headquarters in Hawthorn, Victoria in Australia. Ron Delia is the
company chief managing officer. The Chief Financial Officer of Amcor is Michael John
Casamento. The company has operations in 43 countries around the world with more than 31000
employees. The company latest stock price is $15.77 as at 14th September in Australian Stock
Exchange (ASX). Amcor made sales of US$ 9.5 billion in 2016 financial year. The company
independent auditors are PricewaterhouseCoopers (PWC) based in Melbourne (Amcor.com,
2017).
Industry Situation and Company Plans
Amcor operates in packaging industry. The company made good progress in 2016 financial year
by capturing value, adapting the company, and developing employees in the organization. This
led to remarkable growth of the organization. The company has 195 plants that are located in