Financial Statement Analysis for Australian Pharmaceuticals Industries Ltd

This report provides a detailed analysis of the financial statements of Australian Pharmaceuticals Industries Ltd using trend analysis and various accounting tools. It includes macro-economic analysis, business and industry analysis, and ratio analysis. The report shows the changes in the company’s financial statement over the five-year horizon period. The financial risk analysis along with the cash flow management of the company using ratio analysis is also discussed.

Running head: FINANCIAL STATEMENT ANALYSIS
Financial Statement Analysis
Name of the Student:
Name of the University:
Author’s Note:
Word Count: 2100 words.

1FINANCIAL STATEMENT ANALYSIS
Executive Summary
The aim of the report is to show the changes in the company’s financial statement over the five year
horizon period. The financial review of the company have been performed using trend analysis and
various accounting tools. The ratio analysis and percentage analysis of the company provides an
oversight of the company’s trend in growth and performance of the company. The project also tells
about the various changes in the economy and sector and its influence on company’s operations. The
financial risk analysis along with the cash flow management of the company using ratio analysis.

2FINANCIAL STATEMENT ANALYSIS
Introduction
The Australian Pharmaceuticals Industries Ltd operates in the pharmaceuticals sector. There
were several oversight given into the company. The study of the report is outlined in our assignment.
Macro-Economic Analysis was carried for determining the conditions and factors under which the
company operates. There are certain government rules and regulations, demographic trend and level
of disposable income factors which are discussed in the macroeconomic section.
Through this detailed study of the macro-economic conditions we get to know that the
company may face hurdles in the upcoming five year of horizon time period due to strict rules and
regulations of the government. The company may be able to deliver superior returns in contrast to its
superiors if the company increase the operational and efficiency level of the operations of the
company. The company’s industry and business strategy analysis was performed to analyse the
operations of the company. As part of the Industry Analysis and Business strategy the position of the
company’s product and portfolio analysis was performed (Cook 2016).
The report also shows the conducted accounting analysis and ratio analysis performed where
the financials and operations of the company shows stable and less volatility.
Discussion
Macro-Economic Policy
Macro-Economic Policy, Industry and Business Factors influence the working conditions of a
company. These factors directly and indirectly impacts the company’s operations, it is essential to
know the factors as these are reflected rough the fundamentals and financials of the company. The
Australian Pharmaceuticals Ltd is having the largest market share in wholesale distribution of
pharmaceuticals and other health care products (Borio 2014). The financial report for the company of
2017 shows the revenue segment analysis where the company has majority of its revenue earning
around 95% from Australia and other from New Zealand. The Australian Government policy changes
could influence significantly company’s operations. Certain regulatory reforms, policy and procedures

3FINANCIAL STATEMENT ANALYSIS
have severally impacted the company operation from the year 2015, the demand for branded products
was affected by the introduction of Pharmaceutical Benefit scheme (P.B.S) where customers prefer
switching to generic products. The demographic trend for the company are useful as the elderly
population of Australia is growing. The Australian elderly population is APL biggest market. The
future income growth for the company depend on the disposable income and the consumer spending.
Increase in household disposable income and gross earnings will have a positive impact and influence
on the company (Mankiw 2014).
Business and Industry Analysis
The company has an improved focus on one of the brand which is the Priceline brand for
making it a market leader in the beauty, healthcare and well-being retailer. The company strong
network growth and market share has appositive influence on the operations of the company. The
Industry analysis of the company was performed by using porter’s five force model where we found
that the company was in a cut throat competition with its competitors and its influence on the price or
dominance was quite low. Porter five force analysis gives a brief idea about the industry analysis
(Dobbsv 2014).
Porter’s Five Force Analysis
Rivalry Among
Existing Firms:
High
Threats of New
Entry : Medium
Threats of
Substitute Products:
Low
Bargaining Power
of customers: High
Bargaining Power
of Suppliers:
Medium

4FINANCIAL STATEMENT ANALYSIS
Ratio Analysis
Ratio Analysis provides a trend analysis of the company’s financial operations and it’s also provides
investors with important details of company’s financials. The return on equity is the ratio, which has
been emphasized a lot because it indicates the performance of the company. The ratio is calculated as
a percentage of net income in contrast to the shareholders equity of a company. The ratio analysis was
done on the basis of five year trend analysis and the implications of each ratio on the financials and
workings of the company.
Liquidity Ratio
The ratio measure a company ability for meeting up and paying of the short term obligations of the
company. The liquidity ratio for the company has remained stable this shows that the company is
efficiently utilising the current assets of the company (Law 2018).
Current Ratio: Current Assets/Current Liabilities.
The ratio reflects the company’s current assets available with the company for covering up its
liabilities (Tosi and Paidar 2015).
The Current Ratio for the company is 1.32 times in the year 2017, which has significantly rise from
the year 2013 when it was 1.39 times. This shows that the company is not significantly increasing its
current asset as compared to the current liabilities of the company. The liquidity of the company is
seen to be worsening.
Figure 1: Current Ratio
2013 2014 2015 2016 2017
1.22
1.26
1.30
1.34
1.38
Current Ratio

5FINANCIAL STATEMENT ANALYSIS
Source: Appendix 1
Quick Ratio: (Cash+ Accounts Receivables)/Current Liabilities.
The quick ratio or the pure liquidity ratio shows the most efficient or liquid assets in terms of
obtaining and conversion of assets cycle into cash. The Quick ratio for the company is around 0.85
times in the year 2017, which has significantly reduced and remained static to the level of 0.88 in the
year 2013. The company should focus on improving the quick ratio so that the operating or working
capital of the company (Demerjian, Donovan and Larson 2016).
Figure 2: Quick Ratio
Source: Appendix 1
Solvency Ratio
(Net after-tax income + Non-cash expenses) ÷ (Short-term liabilities + Long-term liabilities). The
solvency ratio shows the efficiency in the company’s management in paying up its long-term
liabilities and obligations of the company (Dam and Pai 2017).
2013 2014 2015 2016 2017
0.76
0.78
0.80
0.82
0.84
0.86
0.88
0.90
Quick Ratio
2013 2014 2015 2016 2017
-0.15
-0.10
-0.05
0.00
0.05
0.10
Solvency Ratio

6FINANCIAL STATEMENT ANALYSIS
Figure 3: Solvency Ratio
Source: Appendix 1
The solvency ratio for the company in the year 2013 was 0.06 times and the ratio has shown some
volatility in the five-year trend but the ratio for the year 2017 was 0.08 times a slight improvement in
the company’s ability in paying of paying of its long term liabilities.
Activity Ratio
The Activity ratio for the company represents the company’s ability of conversion of company
financial component into revenue.
Asset Turnover Ratio: Sales/ Total Assets
The ratio shows the revenue generated by using company’s total assets. The higher the ratio the higher
is the efficiency in the utilization of assets (Weygandt, Kimmel and Kieso 2015). The asset turnover
ratio for the company in the year 2017 was 2.80 times and it has shown significantly improvement
from the year 2013 when the ratio was 2.31 times. This shows the efficiency in utilization of
company’s assets, and delivering better returns on the assets employed (Chen,Shroff and Zhang
2017).
Figure 4: Asset Turnover Ratio
Source: Appendix 1
Financial Leverage Ratio or the Equity Multiplier Ratio: Total Assets/Total Equity
2013 2014 2015 2016 2017
0.00
0.50
1.00
1.50
2.00
2.50
3.00
Asset Turnover Ratio

7FINANCIAL STATEMENT ANALYSIS
The ratio shows the percentage of assets owned by the equity holders of a company. It also shows the
percentage of assets financed by the equity shareholders of the company.
The ratio for the company in the year 2017 was around 2.62 times which has further increased from
the year 2013 where it was 2.36 times. However, the volatility in the ratio was quite low.
Figure 5: Financial Leverage Ratio
Source: Appendix 1
Interest Coverage Ratio: Earnings before Interest and Taxes/Interest
The ratio was at 2.50 times in the year 2013 while the ratio has consistently seen a increase to 10.25
times in the year 2017.
Figure 7: Interest Coverage Ratio
Source: Appendix 2
2013 2014 2015 2016 2017
2.10
2.20
2.30
2.40
2.50
2.60
2.70
2.80
Financial Leverage Ratio
2013 2014 2015 2016 2017
0.00
2.00
4.00
6.00
8.00
10.00
12.00
Interest Coverage Ratio

8FINANCIAL STATEMENT ANALYSIS
Net Borrowing Cost: Total Interest Expense Paid/ Total Interest Bearing Liabilities. The net
borrowing costs for the company has significantly been volatile throughout the five year rend
analysis.
Figure 7.1: Net Borrowing cost
Source: Appendix 1
Profitability Ratio:
Return on Equity: Pre-tax Income/Total Equity
The ratio shows the return generated for the equity shareholders of the company. The return on equity
for the company in the year 2017 was around 14% in the year 2017 which has shown a significant
increase from the year 2013 when the same was 5.93% in the year 2013. The ratio for the company
has remained volatile in the five-year trend (Karim, Al-Mamun and Miah 2017).
Figure 8: Return on Equity
2013 2014 2015 2016 2017
-15.00%
-10.00%
-5.00%
0.00%
5.00%
10.00%
15.00%
20.00%
Return on Equity
2013 2014 2015 2016 2017
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
Net Borrowing Cost

9FINANCIAL STATEMENT ANALYSIS
Source: Appendix 1
Return on Net Operating Assets: Net Income/ Assets used to create revenue.
The ratio calculates the return generated on the assets employed by the company. The ratio is also
helpful in calculating and comparison different companies’ performance among the sector in
assessing and efficiently utilizing the assets. The ratio for the company in the year 2017 was around
15.76% which has shown variability in the five-year trend where the company’s return has shown
negative to positive returns. The ratio for the company in the year 2013 was around 5.21% and was
having negative -25.41% return in the year 2014. This variability in the company trend analysis has
shown that from the year 2015 a consistency in this ratio is observed (Papanastasopoulos and
Thomakos 2017).
Figure 9: Return on Net Operating Assets
Source: Appendix 1
Profit Margin Ratio: Gross profit/ Sales
The profit margin ratio shows the operating profit of the company by the revenue it earns. The ratio
shows the amount of profit generated by the company by selling every extra unit of goods and
services. The ratio taken into account with the compatibility of revenue and gross income earned from
the same. The operating income of the company if greater determines the growth of the company in
the long term.The ratio for the company is around 12.68% in the year 2013, which has remained
constant in the five-year trend analysis while the ratio or the percentage for the year 2017 was around
11.87% (Grant 2016).
2013 2014 2015 2016 2017
-30.00%
-25.00%
-20.00%
-15.00%
-10.00%
-5.00%
0.00%
5.00%
10.00%
15.00%
20.00%
Return on Net Operating Assets

10FINANCIAL STATEMENT ANALYSIS
Figure 10: Profit Margin
Source: Appendix 1
Analysis of Profit Margin
The three significant items which have caused major changes in the profit margin are selling
and general expense are the most important and constituent form of income statement and influences
the profit margin by almost 80%. The company’s net profit gets affected due to expenses warehousing
and distributing expenses, marketing and sales expense and other general expenses. The other is the
financial expenses which the company spends on the debt borrowing it has. The company should try
to reduce these expenses by financing with equity method which will help save interest or borrowing
costs for the company. The income tax expenses for the company depends on the statutory tax rate,
which is not always the same as the effective tax rate. It occurs due to the creation of deferred tax
assets and liabilities created in the books of the companies. The income tax rate and the effective tax
rate for the company has been in the range of approximately 27% with a slight volatility of around 5%
(Appendix 2). The company should focus on tax saving benefits like introduction of debt financing
when the company is in high tax bracket, when the company is having a minimal or no risk in debt
financing (Heikal, Khaddafi and Ummah 2014).
Analysis of Assets and Liabilities
Three major assets and liabilities whose turnover ratio have contributed to the overall change
in the assets efficiency is the fixed assets of the company i.e., plant and machinery which have
reduced by around 5% from 2016-2017 but the increase in the revenue was at the same time observed
2013 2014 2015 2016 2017
11.20%
11.40%
11.60%
11.80%
12.00%
12.20%
12.40%
12.60%
12.80%
13.00%
13.20%
Profit Margin

11FINANCIAL STATEMENT ANALYSIS
to be around 5.26%. This shows that the company has shown efficiency in production and revenue
generation (Appendix 3). The trade and other receivable which has reduced by 1.12% from the year
shows the management has started focusing on the efficiency of this particular asset. While if we see
at the liability side from the year 2013-2017 the company has reduced the loans and borrowing and
long term debt of the company significantly which has let the company reduce financial risks and
reduce interest expense a significant component of income statement (Panigrahi and Sharma 2016).
Cash Flow Analysis
The cash flow from operating activities for the company has increased from the year 2013 to
2017 to around 7.56%. This increase was due to increasing revenue and operating income for the
company. The operations from cash flow has shown a tremendous growth in the period. While the
Cash flow from investing did not see any massive changes except the company has reduced its
property plant and equipment by around 15% from the year 2013-2017 (Cao 2015). The financing
activities did see a major changes in the borrowings and debts of companies which they have repaid
and consistently reduced their debt (Appendix 4).
Figure 11: Net Operating Cash Flow
Source: Appendix 4
The free cash flow analysis was performed with the formula FCF= NOPAT - change in NOA + OCI.
The trend showed an upward or rising scenario for the company (Appendix 6).
Figure 12: Free Cash Flow
2017 2016 2015 2014 2013
0.0
20,000.0
40,000.0
60,000.0
80,000.0
100,000.0
120,000.0
Net Operating Cash Flow

12FINANCIAL STATEMENT ANALYSIS
Source: Appendix 6
Conclusion
American Pharmaceuticals Industries has used different business strategy and analysis by
differentiating the products and delivering unique products and services. The macro economic
analysis performed stated that the current and ongoing regulations are not favourable for the company.
The ratio analysis performed that the company is having a sound positive financial trend. The
company has significantly increased the operating revenue of the company and had reduced a
consolidated debt in the five year time. Overall the company financial position is stable but it should
think of diversifying and reducing operating expenses of the company.
2013 2014 2015 2016 2017
-80
-60
-40
-20
0
20
40
60
80
Free Cash Flow

13FINANCIAL STATEMENT ANALYSIS
References
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& Finance, 45, pp.182-198.
Cao, Q., 2015. Research on the role of cash flow analysis in enterprise management. Modern
economy, 15, pp.72-73.
Chen, W., Shroff, P.K. and Zhang, I., 2017. Fair value accounting: Consequences of booking market-
driven goodwill impairment
Cook, A.G., 2016. Forecasting for the pharmaceutical industry: models for new product and in-
market forecasting and how to use them. Gower.
Dam, L. and Pai, G., 2017. PREDICTIVE ABILITY OF RELATIVE SOLVENCY RATIO FOR
ASSESSING THE PROBABILITY OF DEFAULT IN INDIAN TEXTILE FIRMS.
Demerjian, P.R., Donovan, J. and Larson, C.R., 2016. Fair value accounting and debt contracting:
Evidence from adoption of SFAS 159. Journal of Accounting Research, 54(4), pp.1041-1076.
E. Dobbs, M., 2014. Guidelines for applying Porter's five forces framework: a set of industry analysis
templates. Competitiveness Review, 24(1), pp.32-45.
Grant, R.M., 2016. Contemporary strategy analysis: Text and cases edition. John Wiley & Sons.
Heikal, M., Khaddafi, M. and Ummah, A., 2014. Influence analysis of return on assets (ROA), return
on equity (ROE), net profit margin (NPM), debt to equity ratio (DER), and current ratio (CR), against
corporate profit growth in automotive in Indonesia Stock Exchange. International Journal of
Academic Research in Business and Social Sciences, 4(12), p.101.
Karim, R., Al-Mamun, M.A. and Miah, M.T., 2017. Relationship Between Working Capital
Management Efficiency and Profitability: A Comparative Study on Square Pharmaceuticals Limited

14FINANCIAL STATEMENT ANALYSIS
and Beximco Pharmaceuticals Limited, in Bangladesh. International Journal of Economics, Finance
and Management Sciences, 5(2), pp.121-128.
Law, J., 2018. A Dictionary of Finance and Banking. Oxford University Press.
Mankiw, N.G., 2014. Principles of macroeconomics. Cengage Learning.
Panigrahi, D. and Sharma, A., 2016. Working Capital Structure and Liquidity Analysis: An Empirical
Research on Indian Pharmaceutical Industry.
Papanastasopoulos, G. and Thomakos, D., 2017. Managerial discretion, net operating assets and the
cross-section of stock returns: Evidence from European countries. Journal of International Financial
Markets, Institutions and Money, 47, pp.188-210.
Tosi, L.A. and Paidar, G.A., 2015. The Rrelationship between Accounting Conservatism and
Leverage Ratio and Current Ratio in the Companies Listed in Tehran Stock Exchange. International
Research Journal of Management Sciences, 3(11), pp.573-581.
Weygandt, J.J., Kimmel, P.D. and Kieso, D.E., 2015. Financial & managerial accounting. John
Wiley & Sons.

15FINANCIAL STATEMENT ANALYSIS
Appendix
1) Ratio Analysis
Ratio Analysis
Particulars 2013 2014 2015 2016 2017
Liquidity Ratio
Current Ratio 1.39 1.36 1.28 1.34 1.32
Quick Ratio 0.88 0.81 0.80 0.85 0.85
Solvency Ratio 0.06 -0.11 0.07 0.08 0.08
Activity Ratio
Asset Turnover Ratio 2.31 2.59 2.56 2.65 2.80
Financial Leverage Ratio 2.36 2.68 2.67 2.70 2.62
Interest Coverage Ratio 2.50 3.93 6.80 6.75 10.25
Net Borrowing Cost 15.66% 14.73% 24.62% 21.10% 21.20%
Profitability Ratio
Return on Equity 5.93% -13.30% 11.85% 13.29% 13.79%
Return on Net Operating
Assets 9.43% -37.21% 20.09% 24.65% 25.89%
Profit Margin 12.68% 12.91% 12.96% 12.19% 11.87%
Calculation of Return on Net Operating Assets
Particulars 2013 2014 2015 2016 2017
NOA 254.44 244.54 214.09 210.97 200.88
N.I 24 -91 43 52 52
RNOA 9.43% -37.21% 20.09% 24.65% 25.89%
2) Appendix 2: Income Statement

16FINANCIAL STATEMENT ANALYSIS
Fiscal year is September-August. All values
AUD Millions. 2013 2014 2015 2016 2017 5-year trend
Expense -3169 -3419 -3413 -3789 -4015 5.34%
440
Sales/Revenue 3,186 3,346 3,457 3,840 4,061 5.49%
Sales Growth - 5.02% 3.33% 11.07% 5.76%
Cost of Goods Sold (COGS) incl. D&A -2782 -2914 -3009 -3372 -3580 5.74%
COGS excluding D&A 2,764 2,896 2,989 3,345 3,551 5.69%
Depreciation & Amortization Expense -18 -18 -20 -26 -29 12.22%
Depreciation 18 18 15 17 17 -1.11%
Amortization of Intangibles 0 0 5 10 12
COGS Growth - 4.76% 3.25% 12.06% 6.16%
Gross Income 404 432 448 468 482 3.86%
Gross Income Growth - 6.75% 3.90% 4.40% 2.90%
Gross Profit Margin - - - - 11.86%
SG&A Expense -359 -373 -380 -387 -400 2.28%
Other SG&A 359 373 380 387 400 2.28%
SGA Growth - 3.90% 1.79% 1.93% 3.25%
EBIT - 58 69 - 82
Unusual Expense -6 -111 - 0 -1 -16.67%
Non Operating Income/Expense -4 -3 -4 -4 -5 5.00%
Non-Operating Interest Income 17 6 6 6 6 -12.94%
Interest Expense 18 15 10 12 8 -11.11%
Interest Expense Growth - -19.43% -28.90% 12.69% -30.26%
Gross Interest Expense 18 15 10 12 8 -11.11%
Interest Capitalized 0 - - - -
Pretax Income 35 -64 60 71 76 23.43%
Pretax Income Growth 1 -284.69% 193.65% 19.14% 7.10%
Pretax Margin - - - - 1.88%
Income Tax 11 6 16 17 24 23.64%
Income Tax - Current Domestic 14 0 5 14 25 15.71%
Income Tax - Deferred Domestic -3 6 11 3 -1 -13.33%
Equity in Affiliates 0 -21 0 -2 -
Consolidated Net Income 24 -91 43 52 52 23.33%
Net Income 24 -91 43 52 52 23.33%
Net Income Growth - -473.67% 147.51% 19.81% 1.36%
Net Margin - - - - 1.29%
Net Income After Extraordinaries 24 -91 43 52 52 23.33%
Net Income Available to Common 24 -91 43 52 52 23.33%
Outstanding Shares 480 478.9474 477.778 472.73 472.727 -0.30%
EPS (Basic) 0.05 -0.19 0.09 0.11 0.11 24.00%
EPS (Basic) Growth - -473.49% 147.31% 20.45% 0.94%
Basic Shares Outstanding 488 488 488 489 490 0.08%
EPS (Diluted) 0.05 -0.19 0.09 0.1 0.11 24.00%
EPS (Diluted) Growth - -473.67% 146.82% 20.13% 1.22%
Diluted Shares Outstanding 488 488 495 494 495 0.29%
EBITDA 63 77 89 107 111 15.24%
EBITDA Growth - 21.10% 15.97% 20.75% 3.09%
EBITDA Margin - - - - 2.73%
EBIT - 58 69 - 82
Table 1

17FINANCIAL STATEMENT ANALYSIS
3) Balance Sheet

18FINANCIAL STATEMENT ANALYSIS
Fiscal year is Septeber-August. All values AUD millions. 2013 2014 2015 2016 2017
Cash & Short Term Investents 22.58 23.53 28.05 25.49 39.78
Cash Only 22.58 23.53 28.05 25.49 39.78
Short-Ter Investents - - - - -
Total Accounts Receivable 560.45 534.51 594.76 689.7 681.62
Accounts Receivables, Net 528.64 534.35 567.59 660.27 658.8
Accounts Receivables, Gross 579.16 544.67 581.07 678.96 685.63
Bad Debt/Doubtful Accounts -50.52 -10.32 -13.48 -18.69 -26.84
Other Receivables 31.81 1,60,000 27.17 29.42 22.83
Inventories 335.94 342.48 364.21 413.78 399.34
Finished Goods 337.56 338.46 360.47 410.55 395.59
Work in Progress 3,25,000 1,88,000 1,79,000 2,41,000 -
Raw aterials 3.34 3.83 3.56 4.73 5.75
Progress Payents & Other -5.29 - - -1.73 -2
Other Current Assets - 31.3 6.8 - -
Miscellaneous Current Assets - 31.3 6.8 - -
Total Current Assets 918.97 931.82 993.81 1130 1120
2013 2014 2015 2016 2017
Net Property, Plant & Equipent 121.9 116.82 101.95 100.13 95.28
Property, Plant & Equipent - Gross 250.69 255.36 226.79 228.08 230.37
Buildings 10.64 10.9 10.2 10.71 10.32
Land & Iproveents - - - - -
Coputer Software and Equipent - - - - -
Other Property, Plant & Equipent - - - - -
Accuulated Depreciation 128.79 138.54 124.85 127.95 135.09
Total Investents and Advances 28.33 7.23 - - -
Other Long-Ter Investents - - - - -
Long-Ter Note Receivable 59.62 31.31 29.64 10.14 20.49
Intangible Assets 206.29 167.23 193.69 189.98 193.66
Net Goodwill 100.83 45.41 45.98 46.97 50.02
Net Other Intangibles 105.46 121.83 147.71 143 143.64
Other Assets 1.3 7,22,000 7,42,000 7,46,000 7,01,000
Tangible Other Assets - - - - -
Total Assets 1380 1290 1350 1450 1450
Liabilities & Shareholders' Equity
2013 2014 2015 2016 2017
ST Debt & Current Portion LT Debt 24.98 20.97 58.25 2.98 2.77
Short Ter Debt 3.48 2.83 1.6 1.46 1.61
Current Portion of Long Ter Debt 21.5 18.14 56.66 1.52 1.16
Accounts Payable 561.83 566.66 609.42 748.75 751.5
Incoe Tax Payable 8.24 5,02,000 - 13.36 16.9
Other Current Liabilities 66.04 98.7 110.04 80.55 79.87
Dividends Payable - - - - -
Accrued Payroll 15.64 19.49 23.29 22.4 18.99
Miscellaneous Current Liabilities 50.41 79.22 86.76 58.14 60.88
Total Current Liabilities 661.09 686.83 777.72 845.63 851.03
Long-Term Debt 114.95 101.83 40.61 56.86 37.74
Long-Term Debt excl. Capitalized Leases 114.74 99.32 37.38 45.99 28.64
Non-Convertible Debt 114.74 99.32 37.38 45.99 28.64
Convertible Debt - - - - -
Capitalized Lease Obligations 2,09,000 2.5 3.23 10.86 9.1
Provision for Risks & Charges 10.11 11.57 10.2 9.99 7.7
Deferred Taxes -39.55 -33.93 -22.72 -19.22 -19.85
Deferred Taxes - Credit 1,93,000 9,59,000 7.58 5,34,000 3,64,000
Deferred Taxes - Debit 39.75 34.89 30.3 19.76 20.21
Other Liabilities 5.7 8.11 8.62 - -
Other Liabilities (excl. Deferred Incoe) 5.7 8.11 8.62 0 -
Deferred Income - - - - -
Table 1

19FINANCIAL STATEMENT ANALYSIS
4) Cash Flow Statements
Table 1
Fiscal year is September-
August. All values AUD
Thousands. 2017 2016 2015 2014 2013
5-year
trend
Net Income before
Extraordinaries
52,371.
0 51,670.0 43,126.0 -90771 24,292.0 23.12%
Net Income Growth 1.36% 19.81% 147.51%
-
473.67
%
-
Depreciation, Depletion &
Amortization
28,624.
0 26,443.0 20,381.0 18,245.0 18,169.0 11.51%
Depreciation and Depletion 17,041.
0 16,586.0 14,937.0 17,975.0 17,686.0 -0.73%
Amortization of Intangible
Assets
11,583.
0 9,857.0 5,444.0 270 483 459.63%
Other Funds 3,730.0 23,026.0 11,463.0 80,975.0 -2408 -50.98%
Funds from Operations 84,725.
0 1,01,139.0 74,970.0 8,449.0 40,053.0 22.31%
Changes in Working Capital 10,757.
0 -18282 5,086.0 55,739.0 26,547.0 -11.90%
Receivables -2315 -77946 -25462 21,005.0 -257 160.16%
Inventories 14,438.
0 -49576 -21724 -6544 -15334 -38.83%
Accounts Payable 4,655.0 1,33,008.0 50,940.0 10,815.0 39,585.0 -17.65%
Other Assets/Liabilities -6021 -23768 1,332.0 30,463.0 2,553.0 -67.17%
Net Operating Cash Flow 95,482.
0 82,857.0 80,056.0 64,188.0 66,600.0 8.67%
Net Operating Cash Flow
Growth 15.24% 3.50% 24.72% -3.62% -
Net Operating Cash Flow / Sales 2.35% 2.16% 2.32% 1.92% 2.09% 2.49%
5) Appendix 5: Return on Equity
Particulars 2013 2014 2015 2016 2017
Interest Expense 18 15 10 12 8
Long-Term Debt 114.95 101.83 40.61 56.86 37.74
Net Borrowing cost 15.66% 14.73% 24.62% 21.10% 21.20%
Year
Return on
Equity= P.M* ATO+ FLEV*
(RNOA-
NBC)
2013 15.66% 12.68% 2.31 2.36 -6.23%
2014 14.73% 12.91% 2.59 2.68 -37.21%
2015 24.62% 12.96% 2.56 2.67 -4.54%

20FINANCIAL STATEMENT ANALYSIS
2016 21.10% 12.19% 2.65 2.70 3.54%
2017 21.20% 11.87% 2.80 2.62 4.69%
FCF=NOPAT-CHANGE IN NET OPERATING ASSETS+OTHER COMPREHENSIVE INCOME
YEAR FCFE NOPAT NOA OCI Change in NOA
2013 37.34 35 254.44 -2.34 0
2014 -69.4 -64 244.54 -4.5 9.9
2015 33.3 60 214.09 -3.75 30.45
2016 66.26 71 210.97 1.62 3.12
2017 67.8 76 200.88 -1.89 10.09
6) Appendix 6: Free Cash Flow