Financial Statement Analysis & Valuation

Running head: FINANCIAL STATEMENT ANALYSIS
FINANCIAL STATEMENT ANALYSIS
Name of the Student
Name of the University
Author Note:

FINANCIAL STATEMENT ANALYSIS1
Executive Summary
This report is based on an Australian organization A2 Milk Company Ltd which is indulged in
producing infant milk formula and other dairy products, and it is listed in the ASX200. This
report provides a precise analysis of the company’s financial performance. The study provides
the changes that occurred in financial ratios and the reason for such change and a comparison of
a company’s performance with previous year results.

FINANCIAL STATEMENT ANALYSIS2
Table of Contents
Introduction......................................................................................................................................4
Discussion........................................................................................................................................4
Income Statement Analysis.............................................................................................................5
Financial Ratio Analysis..................................................................................................................6
Liquidity Ratio:................................................................................................................................6
Current Ratio:..............................................................................................................................7
Acid-test Ratio:............................................................................................................................7
Cash Ratio:...................................................................................................................................8
Leverage Financial Ratio.................................................................................................................8
Debt Ratio:...................................................................................................................................9
Debt-Equity Ratio:.......................................................................................................................9
Efficiency Ratio.............................................................................................................................10
Asset Turnover Ratio:................................................................................................................10
Inventory Turnover Ratio:.........................................................................................................10
Days sales in inventory ratio:....................................................................................................11
Profitability Ratio..........................................................................................................................11
Gross Profit Margin Ratio:........................................................................................................12
Operating Profit Margin:...........................................................................................................12
Return on Asset:........................................................................................................................13

FINANCIAL STATEMENT ANALYSIS3
Return on Equity:.......................................................................................................................13
Conclusion.....................................................................................................................................14
Reference.......................................................................................................................................15