Managing Finance And Services

Running head: MANAGING FINANCE
MANAGING FINANCE
Name of Student
Name of University
Author’s Note

MANAGING FINANCE
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Table of Contents
INTRODUCTION:..............................................................................................................3
BACKGROUND:................................................................................................................3
RATIO ANALYSIS:...........................................................................................................3
CAPITL STRUCTURE RATIO:.........................................................................................6
REFERENCES:...................................................................................................................9

MANAGING FINANCE
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MANAGING FINANCE
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INTRODUCTION:
In order to analyses the financial performance of the company two companies’ financial
statements are taken. Two companies that are taken are Macquarie Group Limited and Magellan
Finance Group Limited. These two companies are the market leaders of the financial industry in
Australia. Several financial tools like ratio analysis, capital structure analysis, and historical cost
weighted average cost of capital and discounted cash flows are being analyses. The financial
analysis of both the companies are being analysed and compared. This provides complete idea
about the financial performance of the company. The financial health of the companies will
assist the investors to identify, which company will provide high return.
BACKGROUND:
Macquarie Group Limited is the Australian multinational bank. The bank is an
investment bank. The company was firs established in 1969. The company also employs more
than 14000 employees. The bank present in more than 20 countries of the world. The bank is
also considered as the world’s top largest infrastructure asset manager.
Magellan Finance Group Limited was first established in 2006. The company is one of
the emerging investment companies of Australia. The company’s main business is comprised of
to generate revenue for the clients using their fund in the global equities. The company is also
famous for efficiently safeguarding the capital of their clients.
RATIO ANALYSIS:
In order to analyses the financial performance of the companies, liquidity ratio,
profitability ratio and investment ratios are being measured. In liquidity ratios, both current ratio
are being calculated. In order to calculate the current ratios, both current assets and current