Financial Statement Analysis

Running head: FINANCIAL STATEMENT ANALYSIS
Financial Statement Analysis
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FINANCIAL STATEMENT ANALYSIS
1
Table of Contents
Executive Summary:..................................................................................................................2
Introduction:...............................................................................................................................2
1. SWOT Analysis:....................................................................................................................2
2. Describing the core business activity of WAM Capital Limited, while providing detail
activities and operating segments:.............................................................................................3
3. Discussing any major changes in financial performance from chairman message or
managing director’s review:.......................................................................................................5
4. Calculating the key financial ratios for WAM Capital Limited for 2016 to 2017:................6
5 . Providing overall assessment of WAM Capital Limited and its future-prospects:.............11
Conclusion:..............................................................................................................................12
References and Bibliography:..................................................................................................13

FINANCIAL STATEMENT ANALYSIS
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Executive Summary:
WAM Capital Limited is one of the major investment companies in Australia, who
has outperformed the S&P/ASX All Ordinary Accumulation Index and provided higher
returns to its investors. The financial ratios of WAM Capital Limited indicated that the
organization is in better financial position in 2017, as compared to 2016. The analysis also
indicates about the message of the Chairman, who highlighted the benefits that an investor
can get after investing in WAM Capital Limited.
Introduction:
The assessment aims in evaluating the performance of WAM Capital Limited for the
financial year of 2017 and 2016. This evaluation has been conducted with the help of
adequate financial ratios to determine the financial strength of the organisation. In addition,
relevant analysis has been conducted on the Chairman message provided in the annual report
of WAM Capital Limited. This evaluation is conducted to determine the trend of the
business, which has been projected by the Chairman regarding the current financial
performance of the organisation. Furthermore, the adequate evaluation for the future
performance of WAM capital is depicted to understand the returns that can be generated from
an investment in the organisation (Wilsonassetmanagement.com.au 2019).
1. SWOT Analysis:
Strength
 High performance in the Capital Market
 Adequate risk measurement
 Positive net profit margin
Weakness
 Limits its operations to the Australian
Equity market
 Uses Equity investments and minimises

FINANCIAL STATEMENT ANALYSIS
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 Higher returns and capital growth to
investors
the exposure in other investment options
Opportunity
 The rising demand from investors to
increase their returns and dividends.
 The opportunity in overseas emerging
markets that can increase return from
investment.
Threat
 Rising threat from competition
 Increasing possibility of economic
recessions
 Changing regulations and policies by the
government
2. Describing the core business activity of WAM Capital Limited, while providing detail
activities and operating segments:
The core business activity of WAM Capital Limited is to provide investors with the
exposure of an actively managed diversified portfolio of undervalued growth companies
listed in ASX. The organisation has been using adequate value arbitrage and market
mispricing opportunities for generating high level of income from investment, while reducing
any kind of risk involved in investments. Furthermore, different investment strategies have
been used by WAM Capital Limited to actively provide investors with the opportunity to
generate high level of income from investment (Wilsonassetmanagement.com.au 2019).
Moreover, the organisation also aims in delivering investors with fully franked dividends,
preserved capital and fully franked dividends from investment. The main operation of the
organisation is to acquire capital from investors and invest in ASX to achieve high end
returns from investment, which can be further distributed as fully franked dividends.