Accounting Financial Analysis Report for NEC Limited

RUNNING HEAD: ACCOUNTING FINANCIAL ANALYSIS REPORT
Financial analysis

Accounting financial analysis report 1
Contents
Introduction................................................................................................................................2
Brief Summary – NEC Limited.................................................................................................2
Board of directors.......................................................................................................................3
Characteristics of Board.............................................................................................................6
Investment and financing decisions...........................................................................................8
Recommendations of ASX CGC...............................................................................................8
NEC’s audit function..................................................................................................................9
Ethical judgements and Ethics.................................................................................................10
Key Shareholders and Investors...............................................................................................10
Ratio analysis...........................................................................................................................11
Liquidity ratios.....................................................................................................................11
Asset Management ratios.....................................................................................................12
Capital structure ratios..........................................................................................................13
Profitability ratios.................................................................................................................14
Market value ratios...............................................................................................................14
Cash flow management ratios..............................................................................................15
Conclusion................................................................................................................................15
References................................................................................................................................17
Appendix 1...............................................................................................................................19

Accounting financial analysis report 2
Introduction
This report provides a detail information about the whole analysis of Nine Entertainment Co.
Holdings Limited. NEC is an Australia based media company involved in television
broadcasting, internet, program production, subscription television and many other media
sectors. The report contains a company’s overview in summarised form along with the details
of its board of directors. It also provides information about the financing and investing
decisions taken by the enterprise during the year 2016-2017 along with the details of its
external auditors. In the later part of the report, ASX CGC recommendations, key investors of
the firm and the measures taken by NEC to maintain its ethical standards are discussed. In the
last, financial analysis of the company is done using the technique named as ratio analysis
followed by the conclusion.
Brief Summary – NEC Limited
Nine Entertainment Co. Holdings Limited. Is publically listed company operating its business
is Australia. It was the successor of an Australia based media group named as Publishing and
Broadcasting Ltd. PBL was created by Sir Frank Packer, who had developed the first TV
network of Australia known as Channel 9. PBL was established in 2006 after the transfer of
media interest to a new joint venture between CVC Asia Pacific and PBL. NEC is engaged in
providing media services like broadcasting through television, internet and digital services
and many other media sectors. There are basically two segments in which company operates
named as Television and Digital (Reuters.com. 2018). NEC is also engaged in selling
advertising suite of Microsoft across the country and New Zealand. It has a good and a long
lasting connection or strategic relationship with Microsoft. The brand of the company
includes Nine Digital, Nine Network Television and other business which includes

Accounting financial analysis report 3
CarAdvice, Pdestrain.tv, RateCity and Literacy Planet. It is listed on Australian Securities
Exchange and is traded with a ticker NEC.AX.
NEC operates in entertainment and media industry in Australia. As per the statistics, the
media market of Australia has always shown a growth in past years. In the time frame of 10
years, the market value of the sector has continuously increased and the industry has
performed well. As far as the financial performance of NEC is concerned, the company has
made a revenue worth $1237.8 million which was slightly lower than the revenue earned in
2016 that is $1282.4 million. NEC made a net loss of $203,438 million in 2017 whereas the
same was reported as a profit at $324,755 million in 2016. Along with this, the earnings per
share of Nine Entertainment has also became negative due to the loss made. In 2016, the EPS
was $0.04 cents which turns out to be -$0.23in 2017 (Nineentertainmentco.com.au. 2017).
Board of directors
Name Gender Age Education Career History Post
Remuner
ation ($)
Peter
Costello Male 60
BA,
Bachelor of
Laws LLB
(Hons) and
Doctorate
of laws.
From 1990-2009, he was
been a member of the House
of Representatives and was
the treasurer of
Commonwealth from 1996 to
2007.
Independent
Non-
Executive
Chairman. 390,068
Hugh
Marks
Male N/A B.com and
a degree of
law
In past, Hugh had worked as
a senior executive for 20
years in broadcasting in
CEO and
Director
2,774,695

Accounting financial analysis report 4
Australia and in content
production. Before becoming
the chief executive director
he also owned a company
named as RGM artists. Also,
he was been a CEO of
Southern Star Group and the
director of Nine Films &
Television for seven years.
In addition to that, he was
also the member of
Australian Communications.
David
Gyngell Male 52 N/A
He served the company as a
chief executive officer from
2010 to 2015. He also had a
20 years’ experience in Nine
and over 25 years’ experience
in media industry. In past, he
was the CEO of Granada
Television, worked as an
executive director for
Publishing & Broadcasting
Limited.
Non-
executive
director 163,908

Accounting financial analysis report 5
Janette
Kendall Female N/A
Bachelor of
Business –
Marketing
The lady has more than 23
years’ experience of board
across all type of
organizations covering a wide
range of advertising,
marketing, digital media, arts
and supermarkets. In addition
to this, Kendall is a former
senior executive including
various roles played by her
that are added in her career.
Such as she has held as a
senior vice president of
Galaxy Entertainment Group,
marketing general manager
(executive) at Crown
Melbourne and many more.
Independent
Non-
executive
director 10,920
Samantha
Lewis
Female N/A Bachelor of
Arts (Hons)
She has 20 years’ experience
at Deloitte Touche Tohmatsu
and has also worked as a
partner there. She also
provided accounting advice
and conducted many audits
while playing her role at
Deloitte. Furthermore, she
Independent
Non-
executive
director
47,989