Financial Performance Analysis: Boral Ltd & Adelaide Brighton Ltd

This report presents a comprehensive analysis of the financial performance of Boral Ltd and Adelaide Brighton Ltd over a ten-year period. It begins with an introduction outlining the study's objectives, which include assessing profitability and identifying trends. The report then provides detailed analyses of each company, including their missions, objectives, and strategic priorities. Graphical representations of key financial ratios such as Return on Assets, Return on Investment, Return on Equity, Gross Profit Margin, and Net Profit Margin are presented for both companies. The analysis delves into the financial performance of each company, highlighting revenue trends, profit margins, and return on equity. Comparative studies are conducted using ratio analysis to evaluate the financial positions of both companies. Descriptive statistics and correlation coefficients are also used to analyze variables from the financial statements. The report includes answers to specific questions regarding the financial data and concludes with a summary of the findings and references.

Running head: MANAGEMENT ACCOUNTING AND STATISTICS
Management Accounting and Statistics
Name of the University
Name of the Student
Authors Note
Course ID

1MANAGEMENT ACCOUNTING AND STATISTICS
Table of Contents
Part A:......................................................................................................................... 3
Introduction:................................................................................................................ 3
Outline of the mission, objectives, strategic priorities and operations:........................3
Graphical Representation of the Trend analysis of the profitability:............................4
Boral Ltd:.....................................................................................................................4
Return On Assets:.......................................................................................................4
Return on Investment:.................................................................................................5
Return on Equity:........................................................................................................ 6
Gross Profit Margin:.................................................................................................... 7
Net Profit Margin:........................................................................................................ 8
Adelaide Brighton Ltd:.................................................................................................9
Return on Assets:........................................................................................................9
Return on Investment:...............................................................................................10
Return on Equity:...................................................................................................... 11
Gross Profit Margin:.................................................................................................. 12
Net Profit Margin:...................................................................................................... 13
Analysis of the financial performance:.......................................................................14
Comparative study of Financial Position:..................................................................17
Part B:....................................................................................................................... 20
Answer to 1:.............................................................................................................. 20
Answer to 2:.............................................................................................................. 22
Answer to 3:.............................................................................................................. 24
Answer to 4............................................................................................................... 26
Answer to 5:.............................................................................................................. 29
Conclusion:............................................................................................................... 34
Reference..................................................................................................................36

2MANAGEMENT ACCOUNTING AND STATISTICS

3MANAGEMENT ACCOUNTING AND STATISTICS
Part A:
Introduction:
The following study is based on the assessment of the financial performance
of the Boral Ltd and Adelaide Brighton Ltd by measuring the profitability of these
companies for a period of ten years. The study will further analyse the financial
performance of the companies throughout the period of ten years in order to
determine the success and failure of these companies.
The report will additionally gauge into the comparative results derived by
using the ratio analysis tools to comment on the overall strength of the companies
undertaken for research purpose. On the other hand, of the report a graphical
representation of the numerous variables derived from the financial statement of
both the companies will be provided. Additionally, descriptive statistics with
correlation coefficient will be performed on the number of variables extracted from
the data of the financial report.
Outline of the mission, objectives, strategic priorities and operations:
Boral ltd is the multinational company that is dealing in building and
constructions materials. The company was founded in Australian and its operations
extends to United States and Asia. The strategic intent of Boral Ltd is to be a value
and market determined, being focussed towards building and constructions material
supplier. The objective of the company is to exceed the weighted average cost of
capital with the help of sustainable methods through the building cycle.
The strategic priorities of Boral Ltd is to render improved financial results in
the comparable markets. Additionally the strategic intent and object of Boral Ltd is to
provide greater returns to the shareholder and achieving superior returns to the
shareholder. The operations priorities of Boral Ltd is to constantly implement the best
practices for achieving excellent performance including the areas of operational and
commercial excellence (Boral.com.au, 2017). The mission of Boral Ltd is to build a
business portfolio having balanced traditional and innovative products with more
flexible structure of cost.
Adelaide Brighton Ltd on the other hand is the leading Australian integrated
construction material and lime producing company. The operations of the company

4MANAGEMENT ACCOUNTING AND STATISTICS
is engaged in the manufacturing and supply of the variety of constructions material
products, infrastructure and processing of minerals into the markets throughout the
country. The principle objective of the Adelaide Brighton Ltd consists of the
production, importation and distribution of the cement, industrial lime, concrete of
premixed nature, cement and concrete products (Adelaidebrighton.com.au, 2017).
Adelaide Brighton Ltd continues to impose the long-term strategy of growing the
shareholder returns in three key areas. These includes improvement in the
operational efficiency of the business and cost reductions.
The company aims to achieve growth in the business of lime by aiming to
supply its resources in the areas of Western and Southern Australia. Adelaide
Brighton Ltd is focuses on the relevant and vertical integration in the downstream
aggregates, masonry, concrete and logistics. In applying the strategies of growth,
Adelaide Brighton Ltd aims to pay special attention on the business operations and
corporate level towards certain kind of important drivers for the long-term creation of
shareholder value.
Graphical Representation of the Trend analysis of the profitability:
Boral Ltd:
Return On Assets:
Boral Ltd 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Return on
Assets
5.49
%
5.67
%
2.38
%
0.69
%
3.28
%
2.79
%
4.83
%
1.74
%
4.91
%
4.90
%
Formula:
Return On Assets
Ratio
Net Income Before Interest and Tax
Total Assets

5MANAGEMENT ACCOUNTING AND STATISTICS
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
5.49% 5.67%
2.38%
0.69%
3.28%
2.79%
4.83%
1.74%
4.91% 4.90%
Return on Assets
Figure 1: Return on Assets
(Source: As Created by Author)
Return on Investment:
Boral Ltd 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Return on
Investment
3.45
%
2.73
%
0.51
%
-
1.15
%
2.02
%
1.85
%
2.27
%
2.23
%
3.13
%
3.16
%
Formula:
Return On Investment
Net Profit
Investment Capital

6MANAGEMENT ACCOUNTING AND STATISTICS
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
3.45%
2.73%
0.51%
-1.15%
2.02% 1.85%
2.27% 2.23%
3.13% 3.16%
Return on Investment
Figure 2: Return on Investment
(Source: As Created by Author)
Return on Equity:
Boral Ltd 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Return on
Equity
5.58
%
8.24
%
5.02
%
-
3.37%
5.85
%
5.49
%
-
6.4%
5.21
%
7.48
%
7.28
%
Formula:
Return on Equity
Net Income
Shareholders’ Equity
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
5.58%
8.24%
5.02%
-3.37%
5.85% 5.49%
-6.40%
5.21%
7.48% 7.28%
Return on Equity

7MANAGEMENT ACCOUNTING AND STATISTICS
Figure 3: Return on Equity
(Source: As Created by Author)
Gross Profit Margin:
Boral Ltd 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Gross Profit
Margin
10.81
%
8.00
%
4.83
%
1.36
%
5.65
%
5.64
%
-
6.85%
3.63
%
8.19
%
8.06
%
Formula:
Gross Profit Margin
Gross Profit
Revenue
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
10.81%
8.00%
4.83%
1.36%
5.65% 5.64%
-6.85%
3.63%
8.19% 8.06%
Gross Profit Margin
Figure 4: Gross Profit Margin
(Source: As Created by Author)
Net Profit Margin:
Boral Ltd 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Net Profit
Margin
5.86
%
4.68
%
2.92
%
-
2.01%
3.57
%
3.74
%
-
4.07%
3.89
%
5.98
%
5.94
%

8MANAGEMENT ACCOUNTING AND STATISTICS
Formula:
Net Profit Margin
Net Profit
Total Revenue
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
5.86%
4.68%
2.92%
-2.01%
3.57% 3.74%
-4.07%
3.89%
5.98% 5.94%
Net Profit Margin
Figure 5: Net Profit Margin
(Source: As Created by Author)
Adelaide Brighton Ltd:
Return on Assets:
Adelaide
Brighton Ltd 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Return on
Assets
12.07
%
11.44
%
12.44
%
15.18
%
14.18
%
12.94
%
12.79
%
12.80
%
15.56
%
13.96
%
Formula:
Return On Assets
Ratio
Net Income Before Interest and Tax
Total Assets

9MANAGEMENT ACCOUNTING AND STATISTICS
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
12.07% 11.44% 12.44%
15.18% 14.18%
12.94% 12.79% 12.80%
15.56%
13.96%
Return on Assets
Figure 1: Return on Assets
(Source: As Created by Author)
Return on Investment:
Adelaide Brighton
Ltd 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Return on
Investment
6.29
%
6.00
%
6.80
%
8.75
%
7.51
%
6.91
%
6.84
%
6.94
%
8.41
%
7.64
%
Formula:
Return On Investment
Net Profit
Investment Capital

10MANAGEMENT ACCOUNTING AND STATISTICS
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
6.29% 6.00%
6.80%
8.75%
7.51% 6.91% 6.84% 6.94%
8.41%
7.64%
Return on Investment
Figure 2: Return on Investment
(Source: As Created by Author)
Return on Equity:
Adelaide
Brighton Ltd 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Return on Equity
17.11
%
17.72
%
15.46
%
16.60
%
15.74
%
15.74
%
14.64
%
15.75
%
17.78
%
15.38
%
Formula:
Return on Equity
Net Income
Shareholders’ Equity

11MANAGEMENT ACCOUNTING AND STATISTICS
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
17.11% 17.72%
15.46% 16.60% 15.74% 15.74% 14.64% 15.75%
17.78%
15.38%
Return on Equity
Figure 3: Return on Equity
(Source: As Created by Author)
Gross Profit Margin:
Adelaide
Brighton Ltd 2007 2008 2009 2010 2011
201
2 2013 2014 2015 2016
Gross Profit
Margin
21.83
%
22.04
%
21.81
%
24.40
%
23.43
%
39
%
39.15
%
38.47
%
37.35
%
36.44
%
Formula:
Gross Profit Margin
Gross Profit
Revenue

12MANAGEMENT ACCOUNTING AND STATISTICS
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
21.83% 22.04% 21.81% 24.40% 23.43%
38.96% 39.15% 38.47% 37.35% 36.44%
Gross Profit Margin
Figure 4: Gross Profit Margin
(Source: As Created by Author)
Net Profit Margin:
Adelaide
Brighton Ltd 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Net Profit
Margin
12.88
%
11.86
%
12.50
%
14.17
%
13.53
%
13.14
%
12.33
%
12.93
%
14.73
%
13.36
%
Formula:
Net Profit Margin
Net Profit
Total Revenue

13MANAGEMENT ACCOUNTING AND STATISTICS
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
12.88%
11.86% 12.50%
14.17% 13.53% 13.14% 12.33% 12.93%
14.73%
13.36%
Net Profit Margin
Figure 5: Net Profit Margin
(Source: As Created by Author)
Analysis of the financial performance:
The reported amount of revenue for Boral Ltd declined by 2% on the prior
year and this reflected an impact on the entire year of equity accounting of the
company CSR Bricks Joint Venture after the formation on 1st May 2015. On
analysing the financial performance of Boral Ltd it can be stated the revenue derived
from the construction operations was relatively steady as the growth in the revenue
in the USA helped in setting off the fall in construction material and cement
(Boral.com.au, 2017). As evident from the financial result construction materials and
cement revenue of Boral Ltd was down by 6% with fall in quarries, concrete and
asphalt which ultimately reflected a fall in the major project activities of LNG in
Queensland, Western Australia and Northern Australian regions.
The revenue derived from the building was lower by 23% from the financial
year of 2015 however the revenues of Boral Ltd marginally increased by 1%
following the adjustment from the equity accounting of the Boral CSR Bricks. The
revenues from the Gypsum increased by 10% on the prior year, which was mainly
due to the growth in the premium plasterboard sales and similar products. The
analysis lay down that the net profit increased by 8% over the previous year and the
improvement was mainly because of the 12% increase in the Earnings before
interest and tax (Boral.com.au, 2017). The net profit margin over the year has been

14MANAGEMENT ACCOUNTING AND STATISTICS
steady with company reporting a negative net profit of (2.01) for the financial year of
2010. However, Boral Ltd significantly gained the net profit margin in the following
year of 2011 to 3.57.
As evident from the analysis conducted on return on equity Boral Ltd reported
amount of equity account income stood $59 million which represented 50% share of
the after tax earnings from the full year joint venture in the USG Boral in the year
2016. This ultimately reflected an increase of $10 million for the year 2015
(Boral.com.au, 2017). The return on equity has been somewhat steady for Boral Ltd
except for the year of 2010 where Boral Ltd reported a negative return on equity of
(3.37) however, the company managed to gained in the following year of 2011 with
return on equity standing 5.85. The return on equity for the financial year of 2015 and
2016 reflected a stronger growth of 7.48 and 7.28 respectively. The growth is
primarily attributed to the underlying Earnings before interest and tax of $179 million
which increased by $38 million on the financial year of 2015 because of the strong
growth in the Australia. Boral Ltd continued penetration of premium and contiguous
products with benefits of cost reductions.
Considering the performance of the return on return on investment, it can be
stated that the Boral Ltd recorded an increase in the dividends received from the $35
million equity investment especially in the USG Boral Gypsym and the Boral CSR
Bricks. The return on investment has been somewhat steady as there have been
instances where Boral Ltd has reported a relatively higher return on investment of
3.45 for the year 2007. The company has maintained a positive trend of return on
investment over the span of ten years however in the year 2010 Boral Ltd reported
negative return on investment of -1.15 in the year 2010. In the following years of
2014 and onwards the return on investment gained more strength with dividends
generated from the equity accounted investments.
On the other hand, Adelaide Brighton Ltd financial performance reported a net
profit of 36.44% in the year 2016. The net profit margin for Adelaide Brighton Ltd has
been steady over the span of 10 years with the company reporting a higher net profit
margin of 14.17 in the year 2015 (Adelaidebrighton.com.au, 2017). However, in the
following years Adelaide Brighton Ltd gained more strength in net profit with the
company reporting a net profit margin of 14.73 and 13.36 in the subsequent year of

15MANAGEMENT ACCOUNTING AND STATISTICS
2015 and 2016. The net profit after tax increased by 3.1% despite the fall in sales by
20% in the Western Australia and Northern Territory.
The revenue derived from the business operations for the year $1,396.2
million, which was lower than 1.2% from the year 2015 because of the lower demand
of cement from the residential and resources construction projects. However, it
gained balance from the continuous strength in the sectors of residential and
increase in the infrastructure projects in the eastern states of Southern Australia.
Apart from the growth in the net profit margin, the Adelaide Brighton Ltd has
continuously a strong gross profit margin over the last ten years with a highest gross
margin of 39.15% in the year 2012 (Adelaidebrighton.com.au, 2017). The gross profit
margin reported by Adelaide Brighton Ltd for the later part of the years 2015 and
2016 stood 37.35% and 36.44% respectively.
The growth in gross profit was due to the growth in earnings before interest
and tax, which expanded by 1.6% in the year of 2015 to $257.7 million. Taking into
the considerations of the return on invested Adelaide Brighton Ltd has recorded a
consistent return on investment over the years. The return on investment for
Adelaide Brighton Ltd went as high as 8.41% in the year 2015 and reported as low
as 6.00% in the year 2008. The company reported that higher return on investment
was primarily due to the contributions made from the long-term investments in
aggregate and realisation of the long term vertical integration strategy turns out to be
major contributor to the shareholders return. Adelaide Brighton Ltd has rendered a
compound annual growth of 3.9% net profit after tax over the last five years
(Adelaidebrighton.com.au, 2017).
A conclusion can be draw regarding the performance of the both the
companies over the period of ten years. An assertion can be put forward that both
Adelaide Brighton Ltd and Boral Ltd evenly match in terms of the financial growth
reported. It can be stated that Boral Ltd has reported a better revenue and gross
profit margin over the year and the company has been resilient during the cyclical
nature of the construction markets. Conversely, Boral Ltd has been positively
generated business revenue during the cyclical nature of the market. As it has been
stated in the analysis that company has reported a rising trend of revenue with
improvement in the net profit and gross profit ratio. Boral Ltd has maintained a

16MANAGEMENT ACCOUNTING AND STATISTICS
positive trend of return on investment and return on equity over the span of ten
years. Strategically Boral Ltd is better placed than Adelaide Brighton Ltd since the
company has been successful in long-term strategy of cost reductions by attaining
growth through vertical integration of quality aggregates during cyclic nature of
construction markets.
Comparative study of Financial Position:
Adelaide Brighton Ltd is considered as the largest producer of concrete in
Australia and the company is regarded as one of the leading importer of the cement
and clinker providing with strong competitive position in the market. Financially the
company is regarded as the second largest cement supplier in Australia however the
company has missed strong lime business. One of the best part of the Adelaide
Brighton Ltd is that its cement, concrete and aggregates major part of the business
with the company also performs its operating quarries in processing plants and
distributions centres in most of the states and territories of Australia.
Adelaide Brighton Ltd is regarded as the long term value player over the years
with consistency in delivering strong returns on equity to shareholders. The company
is financial position of the Adelaide Brighton Ltd is better placed since the company
has never reported a period of six months in this new millennium where it has not
paid dividend to its shareholders (Adelaidebrighton.com.au, 2017). Over the last
decade there has been a substantial increase in the share prices and between the
year 2014 to 2016 the shares of the company double folded the amount with
significant amount of yield dilution. Concerning the likes of big bank and Telstra, the
yield seeking investors flocked the stock of Adelaide Brighton Ltd, which ultimately
resulted in increase in the share price as high as 5.95%.
The continuous long-term strategy of Adelaide Brighton Ltd has resulted in
3.1% growth in the net profit after tax over the last five years. The company reported
a growth in the net profit in spite of the decline of the sales volume by 20% in the
regions of Western Australia and Northern Territories of Australia
(Adelaidebrighton.com.au, 2017). However, there was a decline in the company net
profit of the company in the year 2016 by 10.4% to $183.3 million, mainly because of
the lower property profits yet the property contributed a net profit after tax of $7.9
million in comparison to $34.9 million in the year 2015. The financial position of the

17MANAGEMENT ACCOUNTING AND STATISTICS
company improved in the business operations of concrete, aggregates, lime and joint
venture.
The financial position can be stated to be stable as Adelaide Brighton Ltd
reported full year dividends of 28.0 cents, which was fully franked. Financially
Adelaide Brighton Ltd has been posting a strong generation of cash by achieving
growth and assessing its opportunities.
Similar to Adelaide Brighton Ltd, Boral Ltd falls under the S7P/ASX 100
company that has on regular instance paid dividend to its shareholders
(Adelaidebrighton.com.au, 2017). As an outcome of this, the institutional investors
and super funds of self-managed nature have closely followed Boral Ltd. Boral Ltd is
considered as the Australia’s largest supplier of building and materials of
constructions having its operations in all the territories and states.
Boral Ltd has substantial amount of presence outside of Australia with 50% of
its joint venture in the USG becoming the leading supplier of the plaster board and
products of internal linings across the regions of Asia and Australasia. Considering
the financial position of Boral Ltd the shares of the company spiked by around 50%
in the financial year of 2016 however it declined and become out of favour following
the delivery of the entire year results in the month of august and the company traded
as low as $6.17 during the period of mid-September. As evident from the financial
release of the company it has been noticed that the there has been a decline of 2%
in the sales revenue in the previous year.
On the other hand, the revenue derived from the construction material and
cement stood $2.91 billion with a sharp decline of 6% in Quarries, concrete and
Asphalt which ultimately demonstrated a fall in the major activities of the project
including the projects of the LNG. Considerably, the revenue reported by the
company in the year 2016 has been significantly lower by 23% from the financial
year of 2015. However, there has been an instance of increase by 10% in the
underlying revenue of Gypsum, which was primarily driven by the increase in the
sales of the plasterboard and adjacent products. Boral Ltd segment of USA earnings
before interest and tax marked an improvement from the previous year performance
to $44.2 million. The other factor that worked in the strengthening the financial
position is the exposure to increase the activities of infrastructure in Australia. Boral

18MANAGEMENT ACCOUNTING AND STATISTICS
Ltd is financially strongly placed in the supply of asphalt and other necessary
infrastructure products.
Overall, an assertion can be bought forward that the Adelaide Brighton Ltd in
the last decades has reported a better financial performance than Boral Ltd and the
company is better placed financially. This is because the share prices of Adelaide
Brighton Ltd have increased in greater folds than Boral Ltd since the dynamics
surrounding the company is considered to be positive. The comparative financial
study of both the companies provides an evidence that Adelaide Brighton Long-term
value has strongly delivered returns on equity and there has been a substantial
increase in revenue of the company in comparison to Boral Ltd, which has ultimately
resulted in significant amount of yield dilution for the company.

19MANAGEMENT ACCOUNTING AND STATISTICS
Part B:
Answer to 1:
Graphical Representation
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
0
1000
2000
3000
4000
5000
6000
Comparison of Sales between Boral
and Adelaide Brighton Limited
Boral Ltd
Adelaide Brighton Ltd
Year
Sales
Figure 6: Figure representing comparison of Sales
(Source: As Created by Author)
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
-300
-200
-100
0
100
200
300
400
Comparison of NPAT between Boral
and Adelaide Brighton Limited
Boral Ltd
Adelaide Brighton Ltd
Year
Net Profit After Tax

20MANAGEMENT ACCOUNTING AND STATISTICS
Figure 7: Figure representing comparison of NPAT
(Source: As Created by Author)
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
0
500
1000
1500
2000
2500
3000
3500
4000
Comparison of COGS between Boral
and Adelaide Brighton Limited
Boral Ltd
Adelaide Brighton Ltd
Year
Cost of Goods Sold
Figure 8: Figure representing comparison of COGS
(Source: As Created by Author)
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
0.00
1,000.00
2,000.00
3,000.00
4,000.00
5,000.00
6,000.00
7,000.00
Comparison of Total Assets between
Boral and Adelaide Brighton Limited
Boral Ltd
Adelaide Brighton Ltd
Year
Total Assets
Figure 9: Figure representing comparison of Total Assets
(Source: As Created by Author)

21MANAGEMENT ACCOUNTING AND STATISTICS
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
0.00
500.00
1,000.00
1,500.00
2,000.00
2,500.00
3,000.00
3,500.00
Comparison of Total Liabilities
between Boral and Adelaide Brighton
Limited
Boral Ltd
Adelaide Brighton Ltd
Year
Total Liabilities
Figure 10: Figure representing comparison of Total Liabilities
(Source: As Created by Author)
Answer to 2:
Measures of Central tendency of Boral Ltd:
Boral Ltd
Sales
Cost of Goods
Sold
Net Profit After
Tax
Total
Assets
Total
Liabilities
Mean 4666.39 3217.01 141.01 5811.93 2660.09
Standard Error 109.65 83.82 51.94 119.57 101.08
Median 4605.00 3103.95 174.80 5808.30 2660.45
Mode #N/A #N/A #N/A #N/A #N/A
Standard Deviation 346.73 265.08 164.25 378.12 319.64
Sample Variance
120221.
62 70265.46 26978.82
142974.4
4 102170.14
Kurtosis -1.04 1.59 1.50 0.30 -1.56
Skewness 0.61 1.34 -1.51 0.47 -0.04
Range 911 879 510.1 1289.7 884.7
Minimum 4298 2927 -212 5209.4 2211
Maximum 5209 3806 298.1 6499.1 3095.7
Sum 46663.9 32170.1 1410.1 58119.3 26600.9
Count 10 10 10 10 10
Confidence 248.04 189.62 117.50 270.49 228.66

22MANAGEMENT ACCOUNTING AND STATISTICS
Level(95.0%)
Measures of Central tendency of Adelaide Brighton Ltd:
Adelaide Brighton
Ltd
Sales
Cost of Goods
Sold
Net Profit After
Tax
Total
Assets
Total
Liabilities
Mean 1062.59 602.03 152.95 1547.92 481.57
Standard Error 70.23 80.00 9.41 72.01 55.15
Median 1047.65 660.70 151.30 1541.45 540.15
Mode #N/A #N/A #N/A #N/A #N/A
Standard Deviation 222.08 252.98 29.77 227.70 174.40
Sample Variance
49320.4
2 63997.49 886.37 51848.09 30415.13
Kurtosis -0.57 0.37 -0.28 -1.72 -0.25
Skewness 0.39 -1.06 0.47 0.14 -1.00
Range 667.5 734.7 93.9 599.4 490.2
Minimum 745.6 151.1 113.9 1239.1 166
Maximum 1413.1 885.8 207.8 1838.5 656.2
Sum 10625.9 6020.3 1529.5 15479.2 4815.7
Count 10 10 10 10 10
Confidence
Level(95.0%) 158.87 180.97 21.30 162.89 124.76
The average sales of Boral Ltd for the period of ten years is $4666.39 with a
variation of $346.73 per year. The sales for 50% of the period was below $4605.00.
The average COGS of Boral Ltd for the period of ten years is $3217.01 with a
variation of $265.08 per year. The COGS for 50% of the period was below $3103.95.
The average Net Profit After Tax of Boral Ltd for the period of ten years is $141.01
with a variation of $164.25 per year. The NPAT for 50% of the period was below
$174.80.
The average Total Assets for the period of ten years is $5811.93 with a variation of
$378.12 per year. The Total Assets for 50% of the period was below $.5808.30
On the other hand, the average Total Liabilities of Boral Ltd for the period of ten
years is $2660.09 with a variation of $319.64 per year. The Total Liabilities for 50%
of the period was below $2660.45.

23MANAGEMENT ACCOUNTING AND STATISTICS
Taking into the considerations of the average sales of Adelaide Ltd for the period of
ten years is $1062.59 with a variation of $222.08 per year. The sales for 50% of the
period was below $1047.65.
The average COGS of Adelaide Ltd for the period of ten years is $602.03 with a
variation of $252.98 per year. The COGS for 50% of the period was below $660.70.
The average Net Profit After Tax of Adelaide Ltd for the period of ten years is
$152.95 with a variation of $29.77 per year. The NPAT for 50% of the period was
below $29.77.
The average Total Assets for the period of ten years is $1547.92 with a variation of
$227.70 per year. The Total Assets for 50% of the period was below $.1541.45
On the other hand, the average Total Liabilities of Adelaide Ltd for the period of ten
years is $481.92 with a variation of $174.40 per year. The Total Liabilities for 50% of
the period was below $540.15.
Answer to 3:
Correlation Coefficient of Boral Ltd
Boral Ltd
Sale
s
Cost of Goods
Sold
Net Profit After
Tax
Total
Assets
Total
Liabilities
Owners
Equity
Sales 1
Cost of Goods
Sold
0.77
6 1
Net Profit After
Tax
-
0.30
6 -0.571 1
Total Assets
0.44
2 0.657 -0.022 1
Total Liabilities
0.83
7 0.689 -0.273 0.596 1
Owners Equity
-
0.26
2 0.155 0.177 0.620 -0.257 1
Correlation Coefficient of Adelaide Ltd:
Adelaide
Brighton Ltd

24MANAGEMENT ACCOUNTING AND STATISTICS
Sale
s
Cost of Goods
Sold
Net Profit
After Tax
Total
Assets
Total
Liabilities
Owners
Equity
Sales 1
Cost of Goods
Sold
0.90
2 1
Net Profit After
Tax
0.61
3 0.228 1
Total Assets
0.40
1 -0.022 0.901 1
Total Liabilities
0.71
5 0.887 -0.034 -0.169 1
Owners Equity
0.44
8 0.043 0.926 0.924 -0.252 1
The correlation coefficient (r = 0.776) between the Sales and Costs of Goods sold is
positive, strong and linear for Boral Ltd.
The correlation coefficient (r = 0.902) between the Sales and Costs of Goods sold is
positive, strong and linear for Adelaide Brighton Ltd.
The correlation coefficient (r = -0.306) between the Sales and NPAT is negative,
weak and linear for Boral Ltd.
The correlation coefficient (r = 0.613) between the Sales and NPAT is positive,
strong and linear for Adelaide Brighton Ltd.
The correlation coefficient (r = 0.442) between the Sales and Total Assets is positive,
weak and linear for Boral Ltd.
The correlation coefficient (r = 0.401) between the Sales and Total Asset is positive,
weak and linear for Adelaide Brighton Ltd.
The correlation coefficient (r = 0.837) between the Sales and Total Liabilities is
positive, Strong and linear for Boral Ltd.
The correlation coefficient (r = 0.715) between the Sales and Total Liabilities is
positive, strong and linear for Adelaide Brighton Ltd.

25MANAGEMENT ACCOUNTING AND STATISTICS
The correlation coefficient (r = -0.262) between the Sales and Owners Equity is
negative, weak and linear for Boral Ltd.
The correlation coefficient (r = 0.448) between the Sales and Owners Equity is
positive, weak and linear for Adelaide Brighton Ltd.
Answer to 4
Least Square Regression of Boral Ltd:
Boral Ltd
SUMMARY
OUTPUT
Regression Statistics
Multiple R 0.3058
R Square 0.0935
Adjusted R
Square -0.0198
Standard
Error 350.15
Observations 10
ANOVA
df SS MS F
Significa
nce F
Regression 1
101152.3
2
10115
2.32
0.82
5 0.390
Residual 8
980842.2
7
12260
5.28
Total 9
1081994.
59
Coeffici
ents
Standard
Error t Stat
P-
valu
e
Lower
95%
Upper
95%
Lower
95.0%
Upper
95.0%
Intercept
4757.4
0 149.33 31.857
0.00
0
4413.03
7659
5101.76
9055
4413.03
7659
5101.76
9055
Net Profit
After Tax -0.65 0.71 -0.908
0.39
0
-
2.28407
3064
0.99319
5018
-
2.28407
3064
0.99319
5018

26MANAGEMENT ACCOUNTING AND STATISTICS
0 10 20 30 40 50 60 70 80 90 100
0
2000
4000
6000
Normal Probability Plot
Sample Percentile
Sales
Least Square Regression of Adelaide Brighton Ltd:
Adelaide
Brighton Ltd
SUMMARY
OUTPUT
Regression Statistics
Multiple R 0.6133
R Square 0.3761
Adjusted R
Square 0.2981
Standard Error 186.05
Observations 10
ANOVA
df SS MS F
Significa
nce F
Regression 1
166955.6
6
16695
5.66
4.82
3 0.059
Residual 8
276928.0
9
34616.
01
Total 9
443883.7
5
Coeffici
ents
Standard
Error t Stat
P-
valu
e
Lower
95%
Upper
95%
Lower
95.0%
Upper
95.0%
Intercept 362.87 324.00 1.120
0.29
5 -384.265
1110.0
13
-
384.265
1110.01
3
Net Profit
After Tax 4.57 2.08 2.196
0.05
9 -0.22884
9.3784
44
-
0.22884
9.37844
4

27MANAGEMENT ACCOUNTING AND STATISTICS
0 10 20 30 40 50 60 70 80 90 100
0
500
1000
1500
Normal Probability Plot
Sample Percentile
Sales
The regression equation of net profit on sales for Boral Ltd is given by the equation :
Sales = 4757.40 – 0.65*Net Profit
Thus, it can be interpreted that with unit increase in net profit the sales decreases by
$0.65.
Moreover, 9.35% of the variability in sales can be predicted from the net profit of the
Boral Ltd.
The regression equation of net profit on sales for Adelaide Brighton Ltd is given by
the equation :
Sales = 362.87 + 4.57*Net Profit
Thus, it can be interpreted that with unit increase in net profit the sales increases by
$4.57.
Moreover, 37.61% of the variability in sales can be predicted from the net profit of
Adelaide Brighton Ltd.

28MANAGEMENT ACCOUNTING AND STATISTICS
Answer to 5:
Time Series Equation:
Boral Ltd:
1 2 3 4 5 6 7 8 9 10
-1000
0
1000
2000
3000
4000
5000
6000
7000
f(x) = − 63.8357575757576 x + 5017.48666666667f(x) = − 63.8357575757576 x + 5017.48666666667
f(x) = − 4.94727272727273 x + 3244.22
f(x) = − 2.88424242424243 x + 156.873333333333
f(x) = 25.0333333333333 x + 5674.24666666667
f(x) = − 7.87575757575758 x + 101.746666666667
Boral Ltd
Sales Linear (Sales)
Linear (Sales) Linear (Sales)
Cost of Goods Sold Linear (Cost of Goods Sold)
Net Profit After Tax Linear (Net Profit After Tax)
Total Assets Linear (Total Assets )
Linear (Total Assets ) Total Liabilities
Owners Equity Tax
Linear (Tax )
Figure 11: Figure representing comparison of Time Series Equation of Boral Ltd
(Source: As Created by Author)
Adelaide Brighton Ltd:

29MANAGEMENT ACCOUNTING AND STATISTICS
1 2 3 4 5 6 7 8 9 10
0
500
1000
1500
2000
f(x) = 33.8212121212121 x + 876.573333333334
f(x) = 3.6260606060606 x + 582.086666666667
f(x) = 9.16181818181818 x + 102.56
f(x) = 72.7187878787879 x + 1147.96666666667
f(x) = − 10.7642424242424 x + 540.773333333333
f(x) = 61.0733333333333 x + 641.686666666667
f(x) = 4.16424242424242 x + 31.4066666666667
Adelaide Brighton Ltd
Sales Linear (Sales)
Cost of Goods Sold Linear (Cost of Goods Sold)
Linear (Cost of Goods Sold) Net Profit After Tax
Linear (Net Profit After Tax) Total Assets
Linear (Total Assets ) Linear (Total Assets )
Total Liabilities Linear (Total Liabilities)
Owners Equity Linear (Owners Equity )
Tax Linear (Tax )
Figure 12: Figure representing comparison of Time Series Equation of Adelaide
Brighton Ltd
Source; (As Created by Author)
The sales trend for Boral Ltd can be expressed by the equation
Sales = 63.836*T+5017.5
Therefore, the sales for Boral Ltd 2017 can be predicted as
Sales = 63.836*11+5017.5 = 5719.7
Therefore, for the sales for 2018 can be predicted as
Sales = 63.836*12+5017.5 = 5783.53
The sales trend for Adelaide Brighton Ltd can be expressed by the equation
Sales = 33.821*T+876.57
Therefore, for the sales for 2017 can be predicted as
Sales = 33.821*11+876.57 = 1248.6
Therefore, for the sales for 2018 can be predicted as
Sales = 33.821*12+876.57 = 1282.42

30MANAGEMENT ACCOUNTING AND STATISTICS
The COGS trend for Boral Ltd can be expressed by the equation
COGS = 4.9473*T+3244.2
Therefore, the COGS for the year 2017 for Boral Ltd can be predicted as
COGS = 4.9473*11+3244.2 = 3298.62
Therefore, the COGS for the year 2018 for Boral Ltd can be predicted as
COGS = 4.9473*12+3244.2 = 3303.57
The COGS trend for Adelaide Brighton Ltd can be expressed by the equation
COGS = 3.6261*T+582.09 =
Therefore, the COGS for the year 2017 for Adelaide Brighton can be predicted as
COGS = 3.6261*11+582.09 = 621.977
Therefore, the COGS for the year 2018 for Adelaide Brighton can be predicted as
COGS = 3.6261*12+582.09 = 625.603
The NPAT trend for Boral Ltd can be expressed by the equation
NPAT = 7.8758*T+101.75 =
Therefore, the COGS for the year 2017 for Boral Ltd can be predicted as
NPAT = 7.8758*11+101.75 = 188.384
Therefore, the COGS for the year 2018 for Boral Ltd can be predicted as
NPAT = 3.6261*12+582.09 = 196.26
The NPAT trend for Adelaide Brighton Ltd can be expressed by the equation
NPAT = 9.1618*T+102.56 =
Therefore, the Adelaide Brighton Ltd for the year 2017 for Boral Ltd can be predicted
as
NPAT = 9.1618*11+102.56 = 203.34
Therefore, the Adelaide Brighton Ltd for the year 2018 for Boral Ltd can be predicted
as

31MANAGEMENT ACCOUNTING AND STATISTICS
NPAT = 9.1618*12+102.56 =212.502
The Taxes trend for Boral Ltd can be expressed by the equation
Taxes = 2.8842*T+156.87 =
Therefore, the Taxes for the year 2017 for Boral Ltd can be predicted as
Taxes = 2.8842*11+156.87 = 188.596
Therefore, the Taxes for the year 2018 for Boral Ltd can be predicted as
Taxes = 2.8842*12+156.87 =191.48
The Taxes trend for Adelaide Brighton Ltd can be expressed by the equation
Taxes = 4.1642*T+31.407 =
Therefore, the Adelaide Brighton Ltd for the year 2017 can be predicted as
Taxes = 4.1642*11+31.407 = 77.213
Therefore, the Adelaide Brighton Ltd for the year 2018 can be predicted as
Taxes = 4.1642*12+31.407 = 81.377
The Total Assets trend for Boral Ltd can be expressed by the equation
Total Assets = 25.033*T+5674.2 =
Therefore, the Total Assets for the year 2017 for Boral Ltd can be predicted as
Total Assets = 25.033*11+5674.2 = 5949.56
Therefore, the Total Assets for the year 2018 for Boral Ltd can be predicted as
Total Assets = 25.033*12+5674.2 = 5974.6
The Total Assets trend for Adelaide Brighton Ltd can be expressed by the equation
Taxes = 72.719*T+1148.00=
Therefore, the Total Assets Adelaide Brighton Ltd for the year 2017 can be predicted
as
Total Assets = 72.719*11+1148.00=1947.91

32MANAGEMENT ACCOUNTING AND STATISTICS
Therefore, the Total Assets Adelaide Brighton Ltd for the year 2018 can be predicted
as
Total Assets = 72.719*12+1148.00= 2020.63
The Total Liabilities trend for Boral Ltd can be expressed by the equation
Total Liabilities = 63.836*T+5017.5 =
Therefore, the Total Liabilities for the year 2017 for Boral Ltd can be predicted as
Total Liabilities = 63.836*11+5017.5 = 5719.7
Therefore, the Total Liabilities for the year 2018 for Boral Ltd can be predicted as
Total Assets = 63.836*12+5017.5 = 5783.53
The Total Liabilities trend for Adelaide Brighton Ltd can be expressed by the
equation
Total Liabilities = 10.764*T+540.77 =
Therefore, the Total Liabilities for the year 2017 for Adelaide Brighton Ltd can be
predicted as
Total Liabilities = 10.764*11+540.77 = 659.174
Therefore, the Total Liabilities for the year 2018 for Adelaide Brighton Ltd can be
predicted as
Total Liabilities = 10.764*12+540.77 = 669.938
The Owners Equity trend for Boral Ltd can be expressed by the equation
Owners’ Equity = 63.836*T+5017.5 =
Therefore, the Owners Equity for the year 2017 for Boral Ltd can be predicted as
Owners’ Equity = 63.836*11+5017.5 =
Therefore, the Owners Equity for the year 2018 for Boral Ltd can be predicted as
Owners’ Equity = 63.836*12+5017.5 = 5719.7
The Owners Equity trend for Adelaide Brighton Ltd can be expressed by the
equation

33MANAGEMENT ACCOUNTING AND STATISTICS
Owners’ Equity = 61.073*T+641.69 = 5783.53
Therefore, the Owners Equity for the year 2017 for Adelaide Brighton Ltd can be
predicted as
Owners’ Equity = 61.073*11+641.69 = 1313.49
Therefore, the Owners Equity for the year 2018 for Adelaide Brighton Ltd can be
predicted as
Owners’ Equity = 61.073*12+641.69 = 1374.57
Conclusion:
The study can be concluded by stating that the report has gauged into the
comparative results derived by using the ratio analysis tools to understand the
overall strength of the companies undertaken for research purpose. On the other
hand, of the report a graphical representation of the numerous variables derived
from the financial statement of both the companies has been provided. Additionally,
descriptive statistics with correlation coefficient has been performed on the number
of variables extracted from the data of the financial report.

34MANAGEMENT ACCOUNTING AND STATISTICS

35MANAGEMENT ACCOUNTING AND STATISTICS
Reference
Boral's Strategic Intent and Objectives. (2017). Boral.com.au. Retrieved 23 October
2017, from
http://www.boral.com.au/article/boral_strategic_intent_objectives.asp#
Cement, A. (2017). Adelaide Brighton Cement. Adelaide Brighton Cement. Retrieved
23 October 2017, from http://www.adelaidebrighton.com.au/