Review of Financial Performance of Seek Ltd

Review of financial performance
A Case Study of Seek Ltd

Executive Summary
The study tries to analyze financial statements of Seek Ltd and equally ration
the performance in terms of assets utilization, and overall profitability. The
study adopted an analytical approach, the study dwelled majorly on previous
and current performance of Seek Ltd which is an Australian Commercial &
Professional Services firm. The research entirely dependent on the historical
data available, for a period of two years (2017 to December 2018) from the
annual year report and audited financial information of the company that
was available from the ASX database through various organizations including
the Australian stocks exchange for periodic analysis. To be able to analyze
the performance of the company various items were evaluated with help of
financial ratios and accounting ratios. The research analyzed accounting
ratios and financial statement analysis was done to determine the overall
performance index of the firm, this included profitability ratios that had a
great influence on the overall financial performance of the firm. The following
ratios were looked at Gross profit margin (GPM). Return on total assets
(ROTA), Return on equity (ROE), debt to equity ratios, current ratio were all
analyzed. The analysis was done to the case of Seek Ltd. The study reveals
strengths and weakness of the company over the financial period 2017 to
2018. In the fiscal year 2017 performance was better than fiscal year 2018,
there was a significant decline in the profitability of the firm, this was
because of increased operational expenses, furthermore the company
restructured its capital financing, with more financing coming from increased
borrowings.
Keywords: Debt ratios, Liquidity Ratios, Profitability Ratios, Seek
Ltd
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Tables of Contents
Executive Summary.........................................................................................ii
List of tables....................................................................................................iv
1.0 Introduction...............................................................................................1
1.0.1 Corporate governance.........................................................................1
2.1 Risk and return..........................................................................................2
2.1.1 Analysis of the firm..............................................................................2
2.1.2 Working Average Cost Of Capital........................................................4
3.1 Companies performance............................................................................4
3.1.1 Profit margin........................................................................................4
3.1.2 Return on Total assets.........................................................................5
4.1 Competitive advantage and firm’s performance.......................................5
4.1.1 Performance Measures........................................................................5
5.1 Firms financing structure...........................................................................5
6.1 Dividends payout.......................................................................................6
References.......................................................................................................7
Appendices......................................................................................................8
Appendix 1 Income statement......................................................................8
Appendix 2 Balance Sheet..........................................................................10
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List of tables
Table 1.1 Analysis.....................................................................................2
Table 1.2 WACC workings...........................................................................4
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