Financial Analys is Report

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Financial
Analysis Report
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Financial Analysis Report 1
Financial Analysis Report
The below mentioned essay enlighten the reader with the details about the financial and non-
financial performance indicators for the company A2 milk. The organization is a New Zealand
based organization that is listed on Australian stock exchange as well. Further, the essay
highlight the details about the suitability of the company for the purpose of investment. The
factors affecting the profitability of the company are analysed in the paper along with the
elaboration of several recommendations as well.
The annual reports of the company states that there has been an increment in the sales and
profitability of the company that states that it is profitable for the prospective investors to invest
in the business. The most important financial factor looked after while implementing the
investing decision is the profitability of the company and the dividend policy of the company.
The company A2 milk serve both the aspects in an optimal manner, therefore looking at the
financial analysis, it can be said that it is profitable for the investor to invest in the company
(Nystrom, and Winston 2016).
Further, it should be noted that the company has headquarter in Australia and is present in the
dairy industry. The organization initiates is work in different locations like Hong Kong,
Australia, US, China, Malaysia, Singapore, UK and New Zealand. The organization was found
in the year 2000 by Dr Corran McLachlan, since then the business is earning good profits in the
market. The core business areas of the company involve milk, infant solution and dairy products.
Talking about specific growth, it should be noted that the EPS (earnings per share) has been
increased from the previous year of 2017 to 39.25 (A2 milk 2019). The increment in the EPS
shows good profitability and market position of the company. The total share capital of the
company has also been increased to $ 787,854000 that depicts the interest of people in the
functions of the company. The dairy industry of Australia is ranked on the third number in the
nation that shows profitable production and selling activities of the companies present in this
industry. The industry produced A$4.3 billion in the year 2017/18 (Esty, and Fisher 2019).
Current business strategy of the company is to provide best quality goods and services to the
customers in the environment. The company wants its customers to recognize the brand through
the product, therefore they naturally create A2 protein milk that is highly demanded in the