Summary Report on 32South Limited | Accounting and Finance

Running head: SUMMARY REPORT 0
ACCOUNTING AND FINANCE
DECEMBER 14, 2019
STUDENT DETAILS:

SUMMARY REPORT 1
Summary report on 32South Limited-
South32 Limited is diversified metals & mining organisation. The main business of the
company is to make coal, silver, zinc, as well as alumina. It also produces lead, aluminium,
manganese along with nickel. The company runs its operations at the international level. Further,
it is assessed by analysing annual report of company that the liabilities are increased to $4547 in
2019. It was $4424 in 2018. The equity was decreased to $10168 in year 2019. It can see that it
was $10709 in 2018. Additionally, the assets were also decreased to $14715 in 2019. It can also
see that the expenditures are increasing and income is decreasing from the past years (Annual
report, 2019). It does not state good financial position of company. Moreover, it is evaluated that
the company is using constant accounting conventions to record the accounting data in the proper
and effective way. These accounting conventions affect measurement of the key assets.
Additionally, the company is able to take managerial decisions with the help of managerial
judgment to improve financial position of company (Bloomberg, 2018).
The key purpose to conduct financial analysis is for analyzing the liquidity and
profitability condition of the organization. The financial analysis is also helpful in assessing
stability and solvency to affirm the investment. The profitability condition can be analyzed from
return on assets and return on equity ratio. ROA assess how efficiently company can handle the
asset to generate profits. The return on assets is 0.09 in 2018. It was decreased to 0.03 in 2019. It
means that the organization is not handling the assets effectively. ROE measures how effectively
company is making advantage of the equity base and capital base. The return on equity is 0.13 in
2018. It was decreased to 0.03 in 2019. The company should improve the ratio by increasing the
debt relative to equity (Investing.com, 2018).