ACC701: Financial Analysis Report: Beacon Lighting Group Limited Study

This report presents a financial analysis of Beacon Lighting Group Limited, an Australian company in the lighting industry. The analysis focuses on applying financial analysis tools, specifically common size financial statement analysis and ratio analysis. The report provides an overview of the company, established in 1967, and its current market position with 100 stores and 4 franchises. It delves into the methods of common size financial statement analysis, including horizontal and vertical analysis. The report further examines trend analysis to identify elements affecting the company's profitability and financial health. The analysis concludes with recommendations to improve the company's financial performance, supported by references from various sources. This assignment is a valuable resource for students studying accounting and finance, offering practical insights into financial statement analysis.

Accounting For Managers
Company name: BEACON LIGHTING GROUP LIMITED
Student name:
Student number:
Tutor name:

Introduction
The presentation speaks about
financial analysis tools and their
application in an real organization
Common size financial statement
analysis and ratio analysis tools
have been presented.
BEACON LIGHTING GROUP
LIMITED company has been
chosen for the study.

Company overview
BEACON LIGHTING GROUP LIMITED is an
Australian organization which operates
in lighting industry of the country.
The company has been established in
the year of 1967.
Since 1967, the company has become
the largest specialist retailer of light
products.
Currently 100 stores are operated in the
state along with 4 franchise store in
overall Australian market.

Analysis over common size
financial statement:
Common size financial statement
describes about the financial
assets, liabilities, revenue,
expenditures, cash position etc of
the business.
Basically, there are 2 methods to
analyze the financial statement of
an organization which are
horizontal analysis and vertical
analysis.

Continued....
Further, in vertical analysis
method, the information of one
year is collected and the
performance of each sales
element is calculated to identify
their share in the total revenue
and the total expenditure of the
business.

Trend analysis
Trend analysis study makes it
easier for the business to identify
those elements and expenses
which could be eliminated from
the business to maintain the
profit and improve the financial
position and performance of the
business.

Income statement and Balance
sheet
Revenue from continuing
operations ($000s)
Cost of sales ($000s) Gross profit ($000s)
Other income ($000s) Administrative expenses
($000s)
Finance costs ($000s)
Income tax expense ($000s) Net profit for the period
($000s)
Current Assets
Cash and cash equivalents
($000s)
Trade receivables ($000s) Other receivables ($000s)
Total inventories ($000s) Prepayments ($000s) Other current assets
($000s)
BEACON LIGHTING GROUP LIMITED
2018 (AUD)
2017 (AUD)
2016 (AUD)
2015 (AUD)
2014 (AUD)
0
0.1
0.2
0.3
0.4
0.5
0.6
Current Assets Cash and cash equivalents
($000s)
Trade receivables ($000s) Other receivables ($000s)
Total inventories ($000s) Prepayments ($000s)
Other current assets
($000s)

Continued:
Current liabilities Trade payables ($000s) Other payables ($000s) Loans - secured ($000s)
Loans - unsecured ($000s) Obligations under finance
leases and hire purchase
($000s)
Loans from related parties
($000s)
Total current interest-
bearing loans and borrowings
($000s)
Income tax
payable/(refundable)
($000s)
Provisions ($000s) Derivative financial
instruments ($000s)
Other current liabilities
($000s)
Total current liabilities for
continuing operations ($000s)
Liabilities directly associated
with assets held for sale
($000s)
Total current liabilities
($000s)
Total current liabilities for
previous year ($000s)
-150.00%
-100.00%
-50.00%
0.00%
50.00%
100.00%
150.00%
200.00%
Contributed equity ($000s) Retained earnings ($000s)
Reserves ($000s) Total Parent interests
($000s)
Minority interests ($000s) TOTAL EQUITY ($000s)
TOTAL EQUITY FOR PREVIOUS
YEAR ($000s)

Ratio analysis
2018 2017 2016 2015 2014
0.00%
10000.00%
20000.00%
30000.00%
Profitability ratios
Return on Capital employed Return on assets Net profit margin %
Creditors turnover days Stock Turnover (days) Debtors Turnover (days)
Return on Capital employed Return on assets Net profit margin %
2018 2017 2016 2015 2014
0.00
50.00
100.00
150.00
200.00
250.00
300.00
Asset efficiency ratio
Creditors turnover days Stock Turnover (days) Debtors Turnover (days)

Continued:
2018 2017 2016 2015 2014
0.00
0.50
1.00
1.50
2.00
Liqudiity Ratio
Current Ratio Quick ratio
2018 2017 2016 2015 2014
-
5.000
10.000
15.000
20.000
25.000
Capital structure ratio
Debt equity ratio Debt ratio Interest Coverage Ratio

Conclusion and Recommendation
To conclude, company is performing well
in the Australian market since 1969.
The common size statement analysis
concludes that the several changes have
occurred into the business in last 5 years.
It is recommended to the management to
make few changes into the financial
element of the business so that the
overall performance of the business
could be improved.

References:
About us. 2019. BEACON LIGHTING GROUP LIMITED. (online).
Available at: http://www.beaconlightinggroup.com.au/about-us
(accessed on 18/9/2019).
Morningstar. 2019. BEACON LIGHTING GROUP LIMITED. (online).
Available at: https://www.morningstar.com/stocks/xasx/blx/quote
(accessed on 18/9/2019).
Phillips, P.P. and Stawarski, C.A. 2016. Data Collection: Planning
for and Collecting All Types of Data. John Wiley & Sons.
Reilly.F.K and Brown.K.C,. 2011. Investment analysis & portfolio
management,10th edition, India, South western Cengage
learning.
Yahoo finance. 2019. BEACON LIGHTING GROUP LIMITED.
(online). Available at:
https://au.finance.yahoo.com/quote/BLX.AX/ (accessed on
18/9/2019).