Financial Performance Analysis of AMP Limited and Macquarie Group: A Comparative Study

Running head: ACCOUNTING FOR MANAGEMENT
Accounting for Management
Name of the Student:
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Author Note:

1ACCOUNTING FOR MANAGEMENT
Table of Contents
Introduction:....................................................................................................................................3
Discussion:.......................................................................................................................................3
Financial Performance Analysis of AMP Limited:.....................................................................3
Financial Performance Analysis of Macquarie Group:...............................................................5
Financial Position Analysis:........................................................................................................6
Profit margin:...............................................................................................................................7
Liquid ratio:.................................................................................................................................7
Du-Pont analysis:.........................................................................................................................8
Dividend payout ratio:.................................................................................................................9
Key Factors behind fluctuations in AMP’s performance:...............................................................9
Downfall in their Advisory services:...........................................................................................9
Political Factors:........................................................................................................................10
International Expansion:............................................................................................................10
Super Concepts:.........................................................................................................................10
Present Market Situation and Future potentials of AMP Limited:................................................11
Conclusion:....................................................................................................................................13

2ACCOUNTING FOR MANAGEMENT
Reference.......................................................................................................................................14

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Introduction:
Aim of the report is to analyze two companies for taking investment related decision. For
the purpose of this report, two entities those will be considered for comparison are AMP Limited
and Macquarie Group. Here, the main company is AMP Limited and the competitor is
Macquarie Group. Based on their performances for past 5 years that is over the period from 2013
to 2017 the decision for investment will be taken (Williams and Dobelman 2017).
AMP limited is engaged in providing wealth management related services in New
Zealand, Australia and internationally. The entity operates its business through six segments -
AMP Capital, Australian Wealth Management, Australian Wealth Protection, New Zealand
Financial Services, AMP Bank and Australian Mature. It offers various services including
superannuation, financial advices, retirement income, superannuation services for the business
and investment products (Amp.com.au 2019). On the other hand, the competitor of AMP Ltd that
is Macquarie Group is diversified financial group that provides the clients with finance, asset
management, advisory, capital solutions, equity, commodities and debt services. The entity’s
diversified operation combined with the strong financial position as well as robust framework for
risk management has contributed towards unbroken profitability records for 49 years
(Macquarie.com 2019).
Discussion:
Financial Performance Analysis of AMP Limited:
Looking into the profit and loss statement of AMP Ltd it can be recognized that the major
source of revenue for the company is the income earned through premium and the expenses