Analysis of Blackmore's Governance, Cash Conversion Cycle, Net Working Capital, Risks, Share Price and Bond Issue Price

Project

Table of Contents
Table of Contents.............................................................................................................................2
INTRODUCTION...........................................................................................................................1
COMPANY PESPECTIVE.............................................................................................................1
a. analysis of the way in which Blackmore’s governance is organised.......................................1
b. calculation and discussion of the way in which cash conversion cycle of Blackmore is
changed during year 2018 and 2019............................................................................................1
c. What is the net working capital of Blackmore, which asset management strategy is used by
the company and props and cons of this strategy........................................................................3
d. Identification of three major risks in the annual report and these are systematic or not.........4
e. Analysis of the share price of Blackmore................................................................................4
f. Determination of the issue price of the bonds..........................................................................5
CAPITAL BUDGETING................................................................................................................6
a. Calculation of FCFs of the project...........................................................................................6
b. Calculation of NPV of the new manufacturing facility of the entity.......................................6
c. Discounted pay-back period for the project.............................................................................7
d. Justification regarding selecting the project or not..................................................................7
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Project can be defined as the task which is allocated by a senior authority to their juniors.
Present report is based upon Blackmore which is one of the listed companies of Australia. This
assignment covers various topics such as analysis of governance, determination of share price,
analysis of bond issue price etc. Apart from this, NPV and discounted pay back along with future
cash flow are calculated for the organisation.
COMPANY PESPECTIVE
a. analysis of the way in which Blackmore’s governance is organised
From the annual report of Blackmores, it has been determined that the entity is highly
focused with management of the business and dedicated towards the highest standard of
corporate behaviour and accountability throughout all the level of enterprise. The corporate
governance of the company is developed with the help of framework of ASX Corporate
Governance council’s corporate governance principles and recommendations. There are various
policies which are focused by the enterprise (Blackmores Group Governance & Board of
Directors, 2019). These are Anti Bribery and Corruption policy, Blackmores Constitution, Board
Charter, Code of Conduct etc. By analysing the annual report, it has been determined that the
company is following specific strategy so that it can align manager and stakeholder interest
within the entity. For this purpose, the organisation is paying attention towards different types of
policies such as nominations committee charter, share trading policy, supplier code of product,
sustainability position etc. For example, if the company will follow the strategies which are
focused with managers and shareholders then it will help to align both of them at the enterprise.
As the organisation is following different types of policies so it can help to make sure that
managers and shareholders are aligned with the business properly.
b. calculation and discussion of the way in which cash conversion cycle of Blackmore is changed
during year 2018 and 2019
Cash conversion cycle:
Cash conversion cycle
Particulars 2018 2019
Days of sales outstanding 91.48 86.08
Add: Days of inventory outstanding 162.95 187.18
Less: Days of payable outstanding 248.3 197.3
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