logo

Qube Holding's Financial Performance Analysis

   

Added on  2020-05-11

13 Pages2522 Words114 Views
 | 
 | 
 | 
Running head: INTRODUCTION TO ACCOUNTING AND FINANCEIntroduction to accounting and financeName of the studentName of the universityAuthor note
Qube Holding's Financial Performance Analysis_1

1INTRODUCTION TO ACCOUNTING AND FINANCE Table of ContentsPart I – Debt valuation...............................................................................................................2Part II – Share valuation.............................................................................................................3Part III – Cost of capital.............................................................................................................7Part IV – Analysis of the market................................................................................................9Reference..................................................................................................................................11
Qube Holding's Financial Performance Analysis_2

2INTRODUCTION TO ACCOUNTING AND FINANCE Part I – Debt valuation 1.Short term and long term debt Short term debt – for the accounting year ended on 30th June 2017, the short term debt of thecompany amounted to $ 0.8 million. The total borrowings were raised through secured termfrom the finance lease liabilities. Long term debt - for the accounting year ended on 30th June 2017, the long term debt of thecompany amounted to $ 801.1 million. During the year the company entered in a agreementfor senior unsecured 7 year debt facility of bilateral term amounted to $ 150 million with theClean Energy Finance Corporation. Further, the company raised an amount of $ 305 millionthrough the ASX listed note issue for the period of 7 years. Out of the total amount of $ 801.1borrowings, an amount of $ 797.5 million were raised through unsecured sources and the restamount of $ 3.6 million were raised through secured term from the finance lease liabilities(Qube.com.au, 2017). 2.Structure of debtThe net debt of the company for the year ended on 30th June 2017 amounted to $801.9 million. Out of which $ 0.8 million falls under short-term and $ 801.1 million fallsunder long-term. Further, out of the total borrowings, amounts of $ 797.5 were raised throughunsecured source and $ 4.4 million were raised through secured sources.3.Influence of the industryQube Holdings Limited falls under the logistics and infrastructure industry inAustralia. The performance of logistic system has major effect on the capital structure,competitiveness, service quality and revenue structure. However, as the logistic industry isgrowing fast for the last few years and chances of failures are less, it is easy for them to raiseborrowings long term and unsecured loan and therefore, Qube’s debt structure includes long– term and unsecured debt.4.Debt costThe cost of the debt for the year ended on 30th June 2017 was 5%.
Qube Holding's Financial Performance Analysis_3

3INTRODUCTION TO ACCOUNTING AND FINANCE Part II – Share valuation1.Cost of equity of the companyCost of equity (ke) = Rf + β (Rm – Rf)Where, Β = Beta = 1.42Calculation of Beta from stock return and market returnQube HoldingS&P 500DateAdj CloseReturnDateAdj CloseReturn9/30/2012null10/1/2012null10/31/20121.2760111/1/20121416.1811/30/20121.387878.77%12/1/20121426.190.71%12/31/20121.470735.97%1/1/20131498.115.04%1/31/20131.46245-0.56%2/1/20131514.681.11%2/28/20131.40445-3.97%3/1/20131569.193.60%3/31/20131.469084.60%4/1/20131597.571.81%4/30/20131.44389-1.71%5/1/20131630.742.08%5/31/20131.39772-3.20%6/1/20131606.28-1.50%6/30/20131.485876.31%7/1/20131685.734.95%7/31/20131.515241.98%8/1/20131632.97-3.13%8/31/20131.7209213.57%9/1/20131681.552.97%9/30/20131.856227.86%10/1/20131756.544.46%10/31/20131.76212-5.07%11/1/20131805.812.80%11/30/20131.770680.49%12/1/20131848.362.36%12/31/20131.779230.48%1/1/20141782.59-3.56%1/31/20141.8222.40%2/1/20141859.454.31%2/28/20141.907544.69%3/1/20141872.340.69%3/31/20141.930781.22%4/1/20141883.950.62%4/30/20142.026454.95%5/1/20141923.572.10%5/31/20141.98297-2.15%6/1/20141960.231.91%
Qube Holding's Financial Performance Analysis_4

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
Real Estate Investar Group Analysis
|10
|2093
|89

Blackmores Investment Analysis Report
|11
|1978
|59

Financial Management Analysis Report
|10
|2067
|38

Liabilities and Provisions of JB Hi-Fi
|6
|628
|407

Capital Structure and WACC: Determination and Usefulness
|7
|1281
|290