Business Finance Report: ASX Listed Company Analysis, T3 2019

This report provides an overview of the Australian share market, focusing on its capitalization, the Australian Stock Exchange (ASX), and its historical evolution, industry categorization, and importance to the Australian economy. The report then selects and analyzes three ASX-listed companies: National Australian Bank (NAB), BHP Billiton, and Telstra Corporation. For each company, the report details the industry sector, key products, market capitalization, and price performance over the past five years. The analysis includes financial data such as revenue, net income, and total assets. The report concludes by summarizing the key findings related to the performance of companies in the share markets and the discussion on market capitalization of ASX listed companies. The report is based on the HC2091 Business Finance unit at Holmes Institute.

Running head: BUSINESS FINANCE
Business Finance
Name of the Student
Name of the University
Author’s Note

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Executive Summary
This current report has focused on aspects of the share market of Australia. The study include
overview of share market that are based on capitalization and the over view of the Australian
Stock Exchange has also been discussed along with its evolution, industry and importance.
Moreover, three ASX listed company has been selected along with their key sectors, products
and market capitalisation.

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Table of Contents
Introduction......................................................................................................................................3
b. Overview of Australian Stock Exchange along with its historical evolution, industry
categorization, number of listed companies and importance of ASX into Australian Economy....3
c. Brief overview of the three selected companies from ASX listed including its industry sector
they belongs, key products, market capitalization and price performance over the past 5 years....3
Conclusion.......................................................................................................................................4
References........................................................................................................................................5

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Introduction
Business finance is important for any organisation as it act as an important tool for bridge
the gap between the sales and production of the organisation. The company might require to
some of the contingencies which is to be mitigated along with assisting in the process of
promotion of sales.
b. Overview of Australian Stock Exchange along with its historical evolution, industry
categorization, number of listed companies and importance of ASX into Australian
Economy
Australian Stock Exchange is the primary security exchange in Australia and it is mainly
owned by Australian Stock Exchange limited which is a public company based in Australia. The
stock exchange has been formed on 1st April 1987 and it is incorporate under the legislation of
the Australian parliament. The company is located in Sydney, New South Wales, Australia and
has daily turnover of around $ 4.685 billion (Asx.com.au, 2019). It is a market operator and
payment system facilitator which is mainly responsible for seeing the compliance rules along
with operating rules that would promote the overall standard of corporate governance (Lee
2017). The capital market of Australia mainly points out the financial development which leads
the financial system and capital markets of world economic forum. The responsibility of the
supervision in real time trading has been licensed with the financial market of Australia (Chiah
et al. 2016). The Australian Securities and Investments Commission (ASIC) is mainly
responsible for handling these matters along with supervises the ASX compliance that includes
with public companies and ASX listing rules.
Australian Stock Exchange falls under the category of financial instruments and stock
exchange which mainly deals with future exchange and act as a clearing house. The products and
services that are available in ASX includes the trading of shares and future stocks along with
exchange traded options and other management funds (Cumming and Johan 2016). It is
important as the real estate investment funds and interest rate securities are also included with
the products and services that are provided by the company (Chiew et al. 2015). In terms of
market capitalisation, the biggest stocks that are traded in ASX are the Rio Tinto, BHP,
Commonwealth Bank and National Australian bank and others. It also includes the major market
index which are S&P or ASX 200 which is made by the top 200 shares in the index. Interest rate
market of ASX is mainly includes the set of corporate bonds, floating rate notes and preference
shares like bonds (Hatfield-Dodds et al. 2015). In recent years, Australian Stock Exchange
consist of around 2258 listed companies which manages and traded their shares with the help of
this particular stock exchange.
c. Brief overview of the three selected companies from ASX listed including its industry
sector they belongs, key products, market capitalization and price performance over the
past 5 years
The three companies that are selected and that are listed in ASX are National Australian
Bank, BHP Billiton and Telstra Corporation. All of the mentioned companies are listed in ASX
and considered as the largest companies in ASX based on market capitalization.
National Australian Bank is one of the largest financial institution of Australia and also ranks 21st
as the largest banks in the world. It is a type of public company which provides financial services
and banking services to the people of the country. The revenue of the bank is around $ 19.101

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billion and number of employees of the company are around 35000 as per the report of current
year. It also earn net income of around $ 5.554 billion and consist of total assets of $ 806.510
billion as per the report of current year (Nab.com.au 2019). The key products that are provided
by the company are business banking, consumer banking, wholesale banking, insurance services
and wealth management. The market capitalization of national bank of Australia is around $ 48.7
billion for the year 2019. Over the last 5 years, the price performance of the company is
noticeable which points out the range of $ 22 to $ 30 which is remarkable as per the industry.
BHP Billiton is one of the largest trading institution of Australia and also ranks 3rd as the
largest mining company in the world. It is a type of dual listed public company which provides
mining, metals, metals and petroleum in the country. The revenue of the bank is around $ 43.638
billion and number of employees of the company are more than 62000 as per the report of
current year. It also earn net income of around $ 4.823 billion and consist of total assets of $
1119.9 billion as per the report of current year. The key products that are provided by the
company are iron ore, coal, petroleum, copper, nickel, natural gas and uranium. The market
capitalization of BHP Billiton is around $ 133.05 billion for the year 2019 (Bhp.com 2019). Over
the last 5 years, the price performance of the company is remarkable which points out the range
of $ 45 to $ 60 which is noticeable as per the industry.
Telstra Corporation is one of the largest telecommunication company of Australia and
also ranks among the largest telecommunication company in the world. It is a type of public
company which provides telecommunication services and network services to the people of the
country. The revenue of the bank is around $ 26.1 billion and number of employees of the
company are around 32000 as per the report of current year. It also earn net income of around $
3.9 billion and consist of total assets of $ 42.1 billion as per the report of current year. The key
products that are provided by the company are fixed line, mobile services, telephony, internet,
data services, and network services and pay TV. The market capitalization of Telstra Corporation
is around $ 30.02 billion for the year 2019 (Telstra.com.au 2019). Over the last 5 years, the price
performance of the company is noticeable which points out the range of $ 2.2 to $ 4.5 which is
normal as per the industry.
Conclusion
The above study can be concluded by considering the company which points out the
performance in the share markets. Market capitalization has been discussed as per the company
which are listed on ASX.

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References
Asx.com.au (2019). Home Page. Available at https://www.asx.com.au/ [Accessed on 10
December 2019]
Bhp.com.au (2019). Home Page. Available at https://www.bhp.com [Accessed on 10 December
2019]
Chiah, M., Chai, D., Zhong, A. and Li, S., 2016. A Better Model? An empirical investigation of
the Fama–French five‐factor model in Australia. International Review of Finance, 16(4), pp.595-
638.
Cumming, D. and Johan, S., 2016. Venture’s economic impact in Australia. The Journal of
Technology Transfer, 41(1), pp.25-59.
Hatfield-Dodds, S., Schandl, H., Adams, P.D., Baynes, T.M., Brinsmead, T.S., Bryan, B.A.,
Chiew, F.H., Graham, P.W., Grundy, M., Harwood, T. and McCallum, R., 2015. Australia is
‘free to choose’economic growth and falling environmental pressures. Nature, 527(7576), p.49.
Lee, K.H., 2017. Does size matter? Evaluating corporate environmental disclosure in the
Australian mining and metal industry: A combined approach of quantity and quality
measurement. Business Strategy and the Environment, 26(2), pp.209-223.
Nab.com.au (2019). Home Page. Available at https://www.nab.com.au/ [Accessed on 10
December 2019]
Telstra.com.au (2019). Home Page. Available at https://www.telstra.com.au/ [Accessed on 10
December 2019]