Statement of Cash Flows Analysis

Running Head: Finance For Business
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Project Report: Finance for business

Finance For Business
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Contents
Introduction.......................................................................................................................3
1. Company description...............................................................................................3
2. Ownership structure governance.............................................................................3
3. Performance ratios...................................................................................................4
4. Changes in stock price.............................................................................................6
5. Significant factors....................................................................................................7
6. Calculation of CAPM and beta values.....................................................................7
7. WACC calculations.................................................................................................8
8. Debt ratios................................................................................................................9
9. Dividend policy......................................................................................................10
10. Recommendation and Conclusion.........................................................................10
References.......................................................................................................................11
Appendix.........................................................................................................................12

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Introduction:
Finance for business report explains about the various tools through which the
performance, actual position, activities, changes into the stock performance etc could be
evaluated easily. This report has been prepared on Genesis Energy Limited. It is an
Australian company which is managing its operations and business into electricity industry.
For evaluating the actual position and performance of the company, financial statement of the
company has been analyzed. Further, the stock price of the company has been compared with
the Australian stock prices and additionally, the total cost of capital has been evaluated to
identify the best investment proposal of the company. This report assists the company and the
investors to evaluate the position of the company so that a better conclusion could be get.
1. Company description:
Genesis Energy Limited is basically a New Zealand company which has been listed in
the industry of electricity generation and LPG and electricity natural gas. This company has
also been registered in the ASX by the name of GNE.AX. This company is one of the largest
electricity and LPG and natural gas retailers in the Australian market. The market share of the
company is increasing continuously and currently the 39% of electricity market of Australia
is owned by the company (Home, 2018). The company is currently employed 860 people.
Further, the total assets and total equity of the company has been enhanced.
2. Ownership structure governance:
Ownership governance structure is an important part of corporate governance of an
organization. It manages the elements of finance of the company through merging various
theory of agency. The ownership structure of the company has been analyzed and the
following data has been found:
Substantial stakeholders:
The figure 1 explains that the people with higher than 20% shareholding is only one
which name is Her Majesty. This is holding 51.23% share of the company. In addition, there
are only 2 investors who are holding more than 5% stock of the company. The name of the
holder is HSBC Nominees (New Zealand) Limited and the total ownership is 5.17%
(Annual Report, 2018).

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Figure 1: Ownership structure
(Annual Report, 2018)
Main people:
The chairman of the company is Jennifer Shipley. He is working with the company
since 2009. The board members of the company are Mark cross, John Leuchars, Maury
Leyland, Douglas McKay, Timothy Miles and Paul Zealand. And the CEO of the company is
Marc England who is working since 2016 with the company (Reuters, 2018). Further, it has
been evaluated that none of the investors are with the same surname in the top 20
shareholders of the company and none of the shareholder are holding more than 5% stock of
the company.
3. Performance ratios: