MBA403 Financial Analysis Report on Bapcor Limited, ASX Company

This report provides a comprehensive financial analysis of Bapcor Limited, an ASX-listed company. It examines both financial and non-financial indicators to assess the company's performance. The analysis includes a detailed ratio analysis, evaluating profitability, asset turnover, liquidity, debt-to-equity ratio, and dividend yield. Furthermore, the report considers non-financial aspects such as the company's segments, acquisitions, board structure, remuneration strategies, and environmental, social, and governance (ESG) initiatives. The report concludes with an overall assessment of Bapcor Limited's financial health and provides insights for potential investors, highlighting the company's growth, management practices, and potential for future returns. The analysis is presented in a clear and concise manner to meet the expectations of stakeholders, offering valuable insights into Bapcor's financial standing and future prospects.

Running Head: BUSINESS ADMINISTRATION
BUSINESS ADMINISTRATION
Name of the Student
Name of the University
Author Note

1BUSINESS ADMINISTRATION
Table of Contents
Executive Summary...................................................................................................................2
Analysis......................................................................................................................................2
Interpretation..............................................................................................................................3
Conclusion..................................................................................................................................5
Reference....................................................................................................................................6

2BUSINESS ADMINISTRATION
Executive Summary
The financial and non-financial reporting as well as analysis plays important role in
driving successful performance of the business. In the current scenario of business, the
business organizations are analysed from the aspects of financial and non-financial indicators.
The Bapcor Limited is the provider of the automotive aftermarket parts, motor vehicle
servicing, automotive equipment and services and accessories. The segment of the Bapcor
Limited includes Specialist Wholesale, Retail and Trade (Bapcor.com.au. 2019). Hence,
under this report, analysis will be done on the financial and non-financial indicators for the
evaluation of the financial performance of the Bapcor Limited.
Analysis
Bapcor Limited 2018 2017
Profit 94320 63830
Revenue 1236681 1013552
Result 8% 6%
Revenue 1236681 1013552
Total Assets 1227517 1336699
Result 101% 76%
Current Assets 475911 616066
Current Liabilities 242661 282976
Result 1.96 2.18
Total Debt 585171 746732
Equity 642346 589967
Result 0.91 1.27
Dividend 31781 25501
Market Share Price 5.49 6.55
Result 5788.89 3893.28
Dividend Yield Ratio
Current Ratio
Profit Margin Ratio
Assets Turnover
Debt to Equity Ratio

3BUSINESS ADMINISTRATION
Table: Ratio Analysis (Ghasempour and Yusof 2014)
Interpretation
Financial Analysis
The financial analysis is done in order to assess the performance of the organization.
The best method of assessing the company’s financial performance is ratio analysis. The
profit margin of company for the year 2017 was 6% and for 2018 was 8%. This means that
the ratio has been increased by 2%. It indicates that in comparison to the year 2017, the
company is getting more return in terms of profit from net sales. Moreover, assets turnover
ratio for 2017 was 76% and for 2018 was 101%. This means that the ratio has increased by
25%. It shows that efficiency of the company has increased in utilizing the assets. In
comparison to previous year, the return has increased from the utilizing assets. Further,
current ratio for year 2017 was 2.18 and for 2018 was 1.96. This means that the ratio has
decreased by 0.22%. It indicates that the liquidity position of company has been decreased. In
comparison to the last year, company’s ability for meeting its short-term obligations has been
decreased (Laskin, A.V., 2016). However, Bapcor is still in better liquidity position.
Moreover, debt to equity ratio of the company for the year 2017 was 1.27 and for 2018 was
0.91. This means that the ratio has decreased by 0.36. It indicates that as comparison to last
year, company has reduced usage of debt. Lastly, dividend yield ratio of company for 2017
was 3893.28 and for the year, 2018 was 5788.89. This means that the ratio has increased by
1895.61. It indicates that the value of the assets or the cash flows from the dividends has
increased in 2018 in comparison to the last year (Bapcor.com.au. 2019).
Non Financial Analysis
The Bapcor Limited was previously known as Burson group Limited. It is the
provider of the automotive aftermarket parts, its accessories, motor vehicle servicing and

4BUSINESS ADMINISTRATION
automotive equipment as well as services. The segments of the company include Retail,
Trade as well as Specialist wholesale. The segment of trade includes business units of
Precision Automotive Equipment as well as Burson Auto Parts. The company’s segment of
retail is consists of the business units, which are retail customer focused. Lastly, the segment
of Specialist Wholesale includes operations, which is specialized in the automotive
aftermarket wholesale. The company is operating over 800 locations across the countries
such as Australia, Thailand as well as New Zealand (Theriou 2015).
The board of the company is company is consists of independent and non-independent
directors. The ratio of independent to dependent director is 4:8. Bapcor has completed
number of the acquisitions in the year 2018, which includes Tricor Engineering, AADI
Australia Pty ltd. as well as A&F Drive Shaft Repair Qld Pty. Ltd. It has expanded breadth
and depth of offering through the segments of Trade as well as Specialist wholesale. These
acquisitions have resulted into reorganization of the reporting structure (Szabó and Sørensen
2015).
Moreover, the remuneration report provides the information that company provides
appropriate and competitive remuneration, which aims at motivating as well as retaining the
talented team in the highly competitive market. In the year 2018, the pay of key management
personnel was increased that is based on the benchmarking of independent market
remuneration. In terms of other elements of the remuneration strategy, company’s focus is to
provide incentives for the targeted performances with the targets considered in the depth by
board of Bapcor (Fryer Jr 2016).
Further, Bapcor has announced the launch of the strategy of environmental, social as
well as governance that helps to set out the commitment of the company towards the
sustainability in relations to ethical sourcing of the products, investing in their communities

5BUSINESS ADMINISTRATION
as well as people and making efficient uses of the natural resources. The ESG strategy of the
company is aligned with the company’s strategic directions and values for driving positive
outcomes for the stakeholders as well as broader communities (Krištofík, Lament and Musa
2016).
Conclusion
Hence, it is concluded from the analysis that company is in good financial position.
The profitability of the company has been increased, efficiency in utilizing assets has been
increased, liquidity position for meeting short-term liabilities is good, leverage position is
good as company has reduced using dent and lastly, market value of company has been
increased. Moreover, from the non-financial analysis of Bapcor limited, it can be said that
company is performing consistently and achieves growth year on year as well as the
management of the company provides disclosures regarding governance and sustainability on
the continuous basis.
Therefore, investors can take decision regarding investing in this company. It is
because the company’s value has increased. The analysis of financial and non-financial
aspects shows that company is having good management who are looking forward toward
growth. If company will have growth then investor will get benefit from this in terms of
increased value of shares and stability in dividend, which already company is giving.

6BUSINESS ADMINISTRATION
Reference
Bapcor.com.au. 2019. [online] Available at:
https://www.bapcor.com.au/Reports/181012_Bapcor_2018_AR_Annual_Report.pdf
[Accessed 6 Oct. 2019]. Bapcor.com.au. (2019). [online] Available at:
https://www.bapcor.com.au/Reports/181012_Bapcor_2018_AR_Annual_Report.pdf
[Accessed 6 Oct. 2019].
Fryer Jr, R.G., 2016. Information, non-financial incentives, and student achievement:
Evidence from a text messaging experiment. Journal of Public Economics, 144, pp.109-121.
Ghasempour, A. and Yusof, M.A.B.M., 2014. The effect of fundamental determinants on
voluntary disclosure of financial and nonfinancial information: the case of internet reporting
on the Tehran Stock Exchange. The International Journal of Digital Accounting
Research, 14(4), pp.37-56.
Krištofík, P., Lament, M. and Musa, H., 2016. The reporting of non-financial information and
the rationale for its standardisation.
Laskin, A.V., 2016. Nonfinancial information in investor communications. International
Journal of Business Communication, 53(4), pp.375-397.
Szabó, D.G. and Sørensen, K.E., 2015. New EU directive on the disclosure of non-financial
information (CSR). Nordic & European Company Law Working Paper, (15-01).
Theriou, N.G., 2015. Strategic Management Process and the Importance of Structured
Formality, Financial and Non-Financial Information. European Research Studies, 18(2), p.3.