Managing Finance Investment Report

0Running head: MANAGING FINANCE
Managing finance
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1MANAGING FINANCE
Table of Contents
Introduction......................................................................................................................................2
Overview of Alumina Limited.........................................................................................................2
Overview of Bluescope Limited......................................................................................................3
Financial statement analysis compare between Alumina Limited and BlueScope Limited............4
Ratio analysis and comparison between Alumina Limited and BlueScope Limited.......................4
Net Profit margin.............................................................................................................................5
Analysis of liquidity ratio between Alumina Limited and BlueScope Limited..............................6
Investment ratio comparison between Alumina Limited and BlueScope Limited..........................6
Capital structure of Alumina Limited and BlueScope Limited.......................................................8
Historical Weighted Average Cost of Capital- WACC...................................................................9
Discounted cash flow technique......................................................................................................9
Relative Valuation technique.........................................................................................................11
Conclusion.....................................................................................................................................12
Reference.......................................................................................................................................13

2MANAGING FINANCE
Introduction
Financial management is the key success matter within an organization. It generally
means planning, controlling, directing the financial activities, such as procurement and
utilization of fund of the business concern. This paper critically evaluate the financial
management and extract the financial decision, which is relate to the raising of finance from the
various financial resources, which will depend upon certain type of sources, cost of financiang,
period of financing and returns. The introduction of this research suggests how the relationship
will build on the financial statement analysis and risk and return evaluation structure of capital
and share valuation. With the analysis of two companies named as Alumina limited and
BlueScope limited, this paper critically evaluate the financial strength of these two companies
towards the investors. By this study an investor came to understand the ratio analysis, capital
structure of the company, Discounted cashflow technique, WACC with a financial note.
Overview of Alumina Limited
Alumina Limited, is the publicly listed company on the Australian Securities exchange
and the over the couter market in US. It is one of the top 100 listed company on the ASX by the
market capitalization. The strategy of the company is to invest in world wide in bauxite mining,
alumina refining and selected aluminium smelting operations through our 40% ownership of
Alcoa World Alumina & Chemicals. Alumina Limited is a leading Australian resource company
which has a specific focus on alumina. The reamaing 60% owns by the company’s partner
AWAC to manage day to day operations. AWAC employes 5000 people to mine who produce
alumina. Market the alumina to the world’s aluminum smelters and process a percentage to
manufacture the alumina metal (aluminalimited.com, 2020).

3MANAGING FINANCE
Traded symbol: AWC. AX
Market price: $1.0
Overview of Bluescope Limited
Bluescope limited is an Australian flat product steel producer with the resource coming
from New Zealand. The comoany has built up a strong foundation of growth with a diverse
portfolio business in some of the fastest growing economies in the world, their storng balance
sheet which enables a strategic flexibility. The successful global partnership assures to prosper in
the widely diverse market. Blue scope has a strategic focus that it acts as a global leader in a
premium branded coated and painted steel products the third largest manufacturer of painted an
dcoated steel products globally. The company has a great strengths in a significant steel
buildings in a key markets. It is the commitment of BlueScope to deliver value from steel
making in Australia and New Zealand to remain the cost effective and deliver value continuously
through the cycle. The key pillar of the strategy of this company is the financial strength and it
supports a value creation for the various investors. The company’s framework suggests the value
creation which is based on the quality of earnings, return on invested capital, ctredible
progeressive plan and the balance sheet strength (bluescope.com, 2020).
Trade symbol: BSL.AX
Market price: $6.61