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MPA 104 Management Accounting & Statistics

   

Added on  2020-04-29

36 Pages5955 Words79 Views
Statistics and Probability
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Running head: MANAGEMENT ACCOUNTING AND STATISTICSManagement Accounting and StatisticsName of the UniversityName of the StudentAuthors NoteCourse ID
MPA 104 Management Accounting & Statistics_1

MANAGEMENT ACCOUNTING AND STATISTICS1Table of ContentsPart A:...........................................................................................................................3Introduction:..................................................................................................................3Outline of the mission, objectives, strategic priorities and operations:........................3Graphical Representation of the Trend analysis of the profitability:.............................4Boral Ltd:.......................................................................................................................4Return On Assets:........................................................................................................4Return on Investment:..................................................................................................5Return on Equity:..........................................................................................................6Gross Profit Margin:......................................................................................................7Net Profit Margin:..........................................................................................................8Adelaide Brighton Ltd:..................................................................................................9Return on Assets:.........................................................................................................9Return on Investment:................................................................................................10Return on Equity:........................................................................................................11Gross Profit Margin:....................................................................................................12Net Profit Margin:........................................................................................................13Analysis of the financial performance:........................................................................14Comparative study of Financial Position:...................................................................17Part B:.........................................................................................................................20Answer to 1:................................................................................................................20Answer to 2:................................................................................................................22Answer to 3:................................................................................................................24Answer to 4.................................................................................................................26Answer to 5:................................................................................................................29Conclusion:.................................................................................................................34Reference...................................................................................................................36
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MANAGEMENT ACCOUNTING AND STATISTICS2
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MANAGEMENT ACCOUNTING AND STATISTICS3Part A:Introduction: The following study is based on the assessment of the financial performanceof the Boral Ltd and Adelaide Brighton Ltd by measuring the profitability of thesecompanies for a period of ten years. The study will further analyse the financialperformance of the companies throughout the period of ten years in order todetermine the success and failure of these companies. The report will additionally gauge into the comparative results derived byusing the ratio analysis tools to comment on the overall strength of the companiesundertaken for research purpose. On the other hand, of the report a graphicalrepresentation of the numerous variables derived from the financial statement ofboth the companies will be provided. Additionally, descriptive statistics withcorrelation coefficient will be performed on the number of variables extracted fromthe data of the financial report. Outline of the mission, objectives, strategic priorities and operations:Boral ltd is the multinational company that is dealing in building andconstructions materials. The company was founded in Australian and its operationsextends to United States and Asia. The strategic intent of Boral Ltd is to be a valueand market determined, being focussed towards building and constructions materialsupplier. The objective of the company is to exceed the weighted average cost ofcapital with the help of sustainable methods through the building cycle. The strategic priorities of Boral Ltd is to render improved financial results inthe comparable markets. Additionally the strategic intent and object of Boral Ltd is toprovide greater returns to the shareholder and achieving superior returns to theshareholder. The operations priorities of Boral Ltd is to constantly implement the bestpractices for achieving excellent performance including the areas of operational andcommercial excellence (Boral.com.au, 2017). The mission of Boral Ltd is to build abusiness portfolio having balanced traditional and innovative products with moreflexible structure of cost. Adelaide Brighton Ltd on the other hand is the leading Australian integratedconstruction material and lime producing company. The operations of the company
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MANAGEMENT ACCOUNTING AND STATISTICS4is engaged in the manufacturing and supply of the variety of constructions materialproducts, infrastructure and processing of minerals into the markets throughout thecountry. The principle objective of the Adelaide Brighton Ltd consists of theproduction, importation and distribution of the cement, industrial lime, concrete ofpremixed nature, cement and concrete products (Adelaidebrighton.com.au, 2017).Adelaide Brighton Ltd continues to impose the long-term strategy of growing theshareholder returns in three key areas. These includes improvement in theoperational efficiency of the business and cost reductions. The company aims to achieve growth in the business of lime by aiming tosupply its resources in the areas of Western and Southern Australia. AdelaideBrighton Ltd is focuses on the relevant and vertical integration in the downstreamaggregates, masonry, concrete and logistics. In applying the strategies of growth,Adelaide Brighton Ltd aims to pay special attention on the business operations andcorporate level towards certain kind of important drivers for the long-term creation ofshareholder value. Graphical Representation of the Trend analysis of the profitability: Boral Ltd:Return On Assets: Boral Ltd2007200820092010201120122013201420152016Return on Assets5.49%5.67%2.38%0.69%3.28%2.79%4.83%1.74%4.91%4.90%Formula: Return On Assets RatioNet Income Before Interest and TaxTotal Assets
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MANAGEMENT ACCOUNTING AND STATISTICS520072008200920102011201220132014201520165.49%5.67%2.38%0.69%3.28%2.79%4.83%1.74%4.91%4.90%Return on AssetsFigure 1: Return on Assets(Source: As Created by Author)Return on Investment:Boral Ltd2007200820092010201120122013201420152016Return on Investment3.45%2.73%0.51%-1.15%2.02%1.85%2.27%2.23%3.13%3.16%Formula: Return On Investment Net ProfitInvestment Capital
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MANAGEMENT ACCOUNTING AND STATISTICS620072008200920102011201220132014201520163.45%2.73%0.51%-1.15%2.02%1.85%2.27%2.23%3.13%3.16%Return on InvestmentFigure 2: Return on Investment(Source: As Created by Author)Return on Equity:Boral Ltd2007200820092010201120122013201420152016Return on Equity 5.58%8.24%5.02%-3.37%5.85%5.49%-6.4%5.21%7.48%7.28%Formula:Return on EquityNet IncomeShareholders’ Equity20072008200920102011201220132014201520165.58%8.24%5.02%-3.37%5.85%5.49%-6.40%5.21%7.48%7.28%Return on Equity
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MANAGEMENT ACCOUNTING AND STATISTICS7Figure 3: Return on Equity(Source: As Created by Author)Gross Profit Margin:Boral Ltd2007200820092010201120122013201420152016Gross Profit Margin10.81%8.00%4.83%1.36%5.65%5.64%-6.85%3.63%8.19%8.06%Formula:Gross Profit MarginGross Profit Revenue200720082009201020112012201320142015201610.81%8.00%4.83%1.36%5.65%5.64%-6.85%3.63%8.19%8.06%Gross Profit MarginFigure 4: Gross Profit Margin(Source: As Created by Author)Net Profit Margin:Boral Ltd2007200820092010201120122013201420152016Net Profit Margin5.86%4.68%2.92%-2.01%3.57%3.74%-4.07%3.89%5.98%5.94%
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